WELLS FARGO & COMPANY/MN0000072971falseNYSE00000729712024-07-122024-07-120000072971us-gaap:CommonStockMember2024-07-122024-07-120000072971wfc:A7.5NonCumulativePerpetualConvertibleClassAPreferredStockSeriesLMember2024-07-122024-07-120000072971wfc:NonCumulativePerpetualClassAPreferredStockSeriesYMember2024-07-122024-07-120000072971wfc:NonCumulativePerpetualClassAPreferredStockSeriesZMember2024-07-122024-07-120000072971wfc:NonCumulativePerpetualClassAPreferredStockSeriesAAMember2024-07-122024-07-120000072971wfc:NonCumulativePerpetualClassAPreferredStockSeriesCCMember2024-07-122024-07-120000072971wfc:NonCumulativePerpetualClassAPreferredStockSeriesDDMember2024-07-122024-07-120000072971wfc:GuaranteeofMediumTermNotesSeriesAdueOctober302028ofWellsFargoFinanceLLCMember2024-07-122024-07-12
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 12, 2024
WELLS FARGO & COMPANY
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | | | | | | | |
Delaware | | 001-02979 | | No. | 41-0449260 |
(State or Other Jurisdiction of Incorporation) | | (Commission File Number) | | (IRS Employer Identification No.) |
420 Montgomery Street, San Francisco, California 94104
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 1-866-249-3302
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
Common Stock, par value $1-2/3 | WFC | New York Stock Exchange (NYSE) |
7.5% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L | WFC.PRL | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Y | WFC.PRY | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Z | WFC.PRZ | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series AA | WFC.PRA | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series CC | WFC.PRC | NYSE |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series DD | WFC.PRD | NYSE |
Guarantee of Medium-Term Notes, Series A, due October 30, 2028 of Wells Fargo Finance LLC | WFC/28A | NYSE |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b‑2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On July 12, 2024, Wells Fargo & Company (the “Company”) issued a news release regarding its results of operations and financial condition for the quarter ended June 30, 2024, and posted on its website its 2Q24 Quarterly Supplement, which contains certain additional information about the Company’s financial results for the quarter ended June 30, 2024. The news release is included as Exhibit 99.1 and the 2Q24 Quarterly Supplement is included as Exhibit 99.2 to this report, and each is incorporated by reference into this Item 2.02. The information included in Exhibit 99.1 and Exhibit 99.2 is considered to be “filed” for purposes of Section 18 under the Securities Exchange Act of 1934.
Item 7.01 Regulation FD Disclosure.
On July 12, 2024, the Company intends to host a live conference call that will also be available by webcast to discuss the Company’s second quarter 2024 financial results and other matters relating to the Company. In connection therewith, the Company has posted on its website presentation materials containing certain historical and forward-looking information relating to the Company. The presentation materials are included as Exhibit 99.3 to this report and are incorporated by reference into this Item 7.01. Exhibit 99.3 shall not be considered “filed” for purposes of Section 18 under the Securities Exchange Act of 1934 and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| | | | | | | | |
Exhibit No. | Description | Location |
| | Filed herewith |
| | Filed herewith |
| | Furnished herewith |
104 | Cover Page Interactive Data File | Embedded within the Inline XBRL document |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | | | | |
Dated: | July 12, 2024 | WELLS FARGO & COMPANY |
| | | |
| | By: | /s/ MUNEERA S. CARR |
| | | Muneera S. Carr |
| | | Executive Vice President, Chief Accounting Officer and Controller |
| | | | | |
| News Release | July 12, 2024 Wells Fargo Reports Second Quarter 2024 Net Income of $4.9 billion, or $1.33 per Diluted Share |
| | | | | | | | | | | | | | | | | |
Company-wide Financial Summary | | | |
| | | |
| Quarter ended | |
| Jun 30, 2024 | | Jun 30, 2023 | | | |
Selected Income Statement Data ($ in millions except per share amounts) | | | | | | |
| Total revenue | $ | 20,689 | | 20,533 | | | | |
| Noninterest expense | 13,293 | | 12,987 | | | | |
| Provision for credit losses1 | 1,236 | | 1,713 | | | | |
| Net income | 4,910 | | 4,938 | | | | |
| Diluted earnings per common share | 1.33 | | 1.25 | | | | |
Selected Balance Sheet Data ($ in billions) | | | | | | |
| Average loans | $ | 917.0 | | 945.9 | | | | |
| Average deposits | 1,346.5 | | 1,347.4 | | | | |
| CET12 | 11.0 | % | | 10.7 | | | | |
Performance Metrics | | | | | |
| ROE3 | 11.5 | % | | 11.4 | | | | |
| ROTCE4 | 13.7 | | 13.7 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating Segments and Other Highlights |
|
| | Quarter ended | | Jun 30, 2024 % Change from |
($ in billions) | | Jun 30, 2024 | | | | | | Mar 31, 2024 | | Jun 30, 2023 |
Average loans | | | | | | | | | |
Consumer Banking and Lending | | $ | 325.9 | | | | | | | (1) | % | | (3) | |
Commercial Banking | | 224.4 | | | | | | | — | | | (1) | |
Corporate and Investment Banking | | 275.8 | | | | | | | (3) | | | (5) | |
Wealth and Investment Management | | 83.2 | | | | | | | 1 | | | — | |
Average deposits | | | | | | | | | |
Consumer Banking and Lending | | 778.2 | | | | | | | 1 | | | (5) | |
Commercial Banking | | 166.9 | | | | | | | 2 | | | — | |
Corporate and Investment Banking | | 187.5 | | | | | | | 2 | | | 17 | |
Wealth and Investment Management | | 102.8 | | | | | | | 1 | | | (8) | |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | |
Capital
◦Repurchased 100.5 million shares, or $6.1 billion, of common stock in second quarter 2024
| | |
Chief Executive Officer Charlie Scharf commented, “Our efforts to transform Wells Fargo were reflected in our second quarter financial performance as diluted earnings per common share grew from both the first quarter and a year ago. We continued to see growth in our fee-based revenue offsetting an expected decline in net interest income. The investments we have been making allowed us to take advantage of the market activity in the quarter with strong performance in investment advisory, trading, and investment banking fees. Credit performance was consistent with our expectations, commercial loan demand remained tepid, we saw growth in deposit balances in all of our businesses, and the pace of customers reallocating cash into higher yielding alternatives slowed.” “Our capital position remains strong and we continue to use it to support our customers while also prudently returning excess capital to our shareholders. We repurchased over $12 billion of common stock during the first half of this year and as we previously announced, we expect to increase our third quarter common stock dividend by 14%, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting later this month.” Scharf added. “Our risk and control work remains our top priority, and we are also continuing to execute on our strategy to better serve our customers and drive higher returns over time. In the second quarter we launched two new credit cards, a small business card and a consumer card. We have now launched nine new cards since 2021, driving strong credit card spend and account growth. We are investing in our branch network to improve the customer experience including refurbishing branches and enhancing technology. In our commercial businesses we are investing in talent and technology to capture the opportunity inherent in our franchise including hiring a new Co-CEO of Corporate and Investment Banking. I’m proud of the progress we’ve made due to the commitment of everyone who works at Wells Fargo and am excited about the opportunities ahead,” Scharf concluded. |
1 Includes provision for credit losses for loans, debt securities, and other financial assets.
2 Represents our Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach, which is our binding CET1 ratio. See tables on pages 27-28 of the 2Q24 Quarterly Supplement for more information on CET1. CET1 for June 30, 2024, is a preliminary estimate.
3 Return on equity (ROE) represents Wells Fargo net income applicable to common stock divided by average common stockholders’ equity.
4 Tangible common equity and return on average tangible common equity (ROTCE) are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on pages 25-26 of the 2Q24 Quarterly Supplement.
Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.
Selected Company-wide Financial Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | | |
| Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | | | | | | |
Earnings ($ in millions except per share amounts) | | | | | | | | | | | | | | | | |
| Net interest income | $ | 11,923 | | | 12,227 | | | 13,163 | | | (2) | % | | (9) | | | | | | | | |
| Noninterest income | 8,766 | | | 8,636 | | | 7,370 | | | 2 | | | 19 | | | | | | | | |
| Total revenue | 20,689 | | | 20,863 | | | 20,533 | | | (1) | | | 1 | | | | | | | | |
| Net charge-offs | 1,303 | | | 1,157 | | | 764 | | | 13 | | | 71 | | | | | | | | |
| Change in the allowance for credit losses | (67) | | | (219) | | | 949 | | | 69 | | NM | | | | | | | |
| Provision for credit losses1 | 1,236 | | | 938 | | | 1,713 | | | 32 | | | (28) | | | | | | | | |
| Noninterest expense | 13,293 | | | 14,338 | | | 12,987 | | | (7) | | | 2 | | | | | | | | |
| Income tax expense | 1,251 | | | 964 | | | 930 | | | 30 | | 35 | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Wells Fargo net income | $ | 4,910 | | | 4,619 | | | 4,938 | | | 6 | | | (1) | | | | | | | | |
| Diluted earnings per common share | 1.33 | | | 1.20 | | | 1.25 | | | 11 | | | 6 | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Balance Sheet Data (average) ($ in billions) | | | | | | | | | | | | | | | | |
| Loans | $ | 917.0 | | | 928.1 | | | 945.9 | | | (1) | | | (3) | | | | | | | | |
| Deposits | 1,346.5 | | | 1,341.6 | | | 1,347.4 | | | — | | | — | | | | | | | | |
| Assets | 1,914.6 | | | 1,917.0 | | | 1,878.3 | | | — | | | 2 | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Financial Ratios | | | | | | | | | | | | | | | | |
| Return on assets (ROA) | 1.03 | % | | 0.97 | | | 1.05 | | | | | | | | | | | | |
| Return on equity (ROE) | 11.5 | | | 10.5 | | | 11.4 | | | | | | | | | | | | |
| Return on average tangible common equity (ROTCE)2 | 13.7 | | | 12.3 | | | 13.7 | | | | | | | | | | | | |
| Efficiency ratio3 | 64 | | | 69 | | | 63 | | | | | | | | | | | | |
| Net interest margin on a taxable-equivalent basis | 2.75 | | | 2.81 | | | 3.09 | | | | | | | | | | | | |
NM – Not meaningful
1Includes provision for credit losses for loans, debt securities, and other financial assets.
2Tangible common equity and return on average tangible common equity are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on pages 25-26 of the 2Q24 Quarterly Supplement.
3The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
Second Quarter 2024 vs. Second Quarter 2023
◦Net interest income decreased 9%, due to the impact of higher interest rates on funding costs, including the impact of lower deposit balances and customer migration to higher yielding deposit products in Consumer Banking and Lending and Wealth and Investment Management, higher deposit costs in Commercial Banking and Corporate and Investment Banking, as well as lower loan balances, partially offset by higher yields on earning assets
◦Noninterest income increased 19%, driven primarily by higher trading revenue in our Markets business, higher investment banking fees, an increase in asset-based fees in Wealth and Investment Management on higher market valuations, the impact from the adoption of a new accounting standard for renewable energy tax credit investments5, and improved results from our venture capital investments
◦Noninterest expense increased 2%, driven by higher operating losses including higher customer remediation accruals for historical matters, an increase in revenue-related compensation predominantly in Wealth and Investment Management, and higher technology and equipment expense, partially offset by the impact of efficiency initiatives including lower salaries expense and professional and outside services expense
◦Provision for credit losses in second quarter 2024 included a modest decrease in the allowance for credit losses, as a higher allowance for credit card loans was more than offset by lower allowances for most other loan portfolios
5 In first quarter 2024, we adopted a new accounting standard to use the proportional amortization method for renewable energy tax credit investments. Under the proportional amortization method, the amortization of the investments and the related tax impacts are both recognized in income tax expense. Previously, we recognized the amortization of the investments in other noninterest income and the related tax impacts were recognized in income tax expense.
Selected Company-wide Capital and Liquidity Information
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter ended |
($ in billions) | Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 |
Capital: | | | | | |
| Total equity | $ | 178.1 | | | 182.7 | | | 182.0 | |
| Common stockholders’ equity | 160.0 | | | 162.5 | | | 160.9 | |
| Tangible common equity1 | 134.7 | | | 137.2 | | | 134.0 | |
| Common Equity Tier 1 (CET1) ratio2 | 11.0 | % | | 11.2 | | | 10.7 | |
| Total loss absorbing capacity (TLAC) ratio3 | 24.8 | | | 25.1 | | | 23.1 | |
| Supplementary Leverage Ratio (SLR)4 | 6.7 | | | 6.9 | | | 6.9 | |
| | | | | | |
Liquidity: | | | | | |
| Liquidity Coverage Ratio (LCR)5 | 124 | % | | 126 | | | 123 | |
1Tangible common equity is a non-GAAP financial measure. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on pages 25-26 of the 2Q24 Quarterly Supplement.
2Represents our CET1 ratio calculated under the Standardized Approach, which is our binding CET1 ratio. See tables on pages 27-28 of the 2Q24 Quarterly Supplement for more information on CET1. CET1 for June 30, 2024, is a preliminary estimate.
3Represents TLAC divided by risk-weighted assets (RWAs), which is our binding TLAC ratio, determined by using the greater of RWAs under the Standardized and Advanced Approaches. TLAC for June 30, 2024, is a preliminary estimate.
4SLR for June 30, 2024, is a preliminary estimate.
5Represents average high-quality liquid assets divided by average projected net cash outflows, as each is defined under the LCR rule. LCR for June 30, 2024, is a preliminary estimate.
◦In June, the Company completed the 2024 Comprehensive Capital Analysis and Review stress test process
▪The Company’s stress capital buffer (SCB) for October 1, 2024, through September 30, 2025, is expected to be 3.8%; the Federal Reserve Board has indicated that it will publish our final SCB by August 31, 2024
▪Third quarter 2024 common stock dividend is expected to be $0.40 per share, up from $0.35 per share, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting in July
Selected Company-wide Loan Credit Information
| | | | | | | | | | | | | | | | | | | | |
| | | Quarter ended |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 |
| | | | | |
Net loan charge-offs | $ | 1,301 | | | 1,149 | | | 764 | |
| Net loan charge-offs as a % of average total loans (annualized) | 0.57 | % | | 0.50 | | | 0.32 | |
| | | | | | |
Total nonaccrual loans | $ | 8,434 | | | 8,075 | | | 6,886 | |
| As a % of total loans | 0.92 | % | | 0.88 | | | 0.73 | |
Total nonperforming assets | $ | 8,650 | | | 8,240 | | | 7,019 | |
| As a % of total loans | 0.94 | % | | 0.89 | | | 0.74 | |
| | | | | |
Allowance for credit losses for loans | $ | 14,789 | | | 14,862 | | | 14,786 | |
| As a % of total loans | 1.61 | % | | 1.61 | | | 1.56 | |
Second Quarter 2024 vs. First Quarter 2024
◦Commercial net loan charge-offs as a percentage of average loans were 0.35% (annualized), up from 0.25%, driven by higher commercial real estate net loan charge-offs, predominantly in the office portfolio, as well as higher commercial and industrial net loan charge-offs. The consumer net loan charge-off rate increased to 0.88% (annualized), up from 0.84%, due to higher net loan charge-offs in the credit card portfolio, partially offset by lower net loan charge-offs in the auto portfolio
◦Nonperforming assets were up $410 million, or 5%, driven by higher commercial real estate nonaccrual loans, predominantly in the office portfolio
Operating Segment Performance
Consumer Banking and Lending offers diversified financial products and services for consumers and small businesses with annual sales generally up to $10 million. These financial products and services include checking and savings accounts, credit and debit cards, as well as home, auto, personal, and small business lending.
Selected Financial Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from |
| | Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 |
Earnings (in millions) | | | | | | | | | |
| Consumer, Small and Business Banking | $ | 6,129 | | | 6,092 | | | 6,448 | | | 1 | % | | (5) | |
| Consumer Lending: | | | | | | | | | |
| | Home Lending | 823 | | | 864 | | | 847 | | | (5) | | | (3) | |
| | Credit Card | 1,452 | | | 1,496 | | | 1,449 | | | (3) | | | — | |
| | Auto | 282 | | | 300 | | | 378 | | | (6) | | | (25) | |
| | Personal Lending | 320 | | | 339 | | | 333 | | | (6) | | | (4) | |
| | | | | | | | | | |
| Total revenue | 9,006 | | | 9,091 | | | 9,455 | | | (1) | | | (5) | |
| Provision for credit losses | 932 | | | 788 | | | 874 | | | 18 | | | 7 | |
| Noninterest expense | 5,701 | | | 6,024 | | | 6,027 | | | (5) | | | (5) | |
| | | | | | | | | | | |
| Net income | $ | 1,777 | | | 1,706 | | | 1,914 | | | 4 | | | (7) | |
| | | | | | | | | | | |
Average balances (in billions) | | | | | | | | | |
| Loans | $ | 325.9 | | | 329.7 | | | 336.4 | | | (1) | | | (3) | |
| Deposits | 778.2 | | | 773.2 | | | 823.3 | | | 1 | | | (5) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Second Quarter 2024 vs. Second Quarter 2023
◦Revenue decreased 5%
▪Consumer, Small and Business Banking was down 5% driven by lower deposit balances and the impact of customer migration to higher yielding deposit products including promotional savings and time deposit accounts
▪Home Lending was down 3% reflecting lower net interest income on lower loan balances
▪Credit Card was stable reflecting higher loan balances, including the impact of higher point of sale volume and new account growth, offset by lower other fee revenue
▪Auto was down 25% due to lower loan balances and loan spread compression
▪Personal Lending was down 4% driven by lower loan balances and loan spread compression
◦Noninterest expense was down 5% reflecting lower operating costs and the impact of efficiency initiatives, partially offset by higher advertising and occupancy expense
Commercial Banking provides financial solutions to private, family owned and certain public companies. Products and services include banking and credit products across multiple industry sectors and municipalities, secured lending and lease products, and treasury management.
Selected Financial Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from |
| | Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 |
Earnings (in millions) | | | | | | | | | |
| Middle Market Banking1 | $ | 2,153 | | | 2,078 | | | 2,199 | | | 4 | % | | (2) | |
| Asset-Based Lending and Leasing1 | 969 | | | 1,074 | | | 1,170 | | | (10) | | | (17) | |
| Total revenue | 3,122 | | | 3,152 | | | 3,369 | | | (1) | | | (7) | |
| Provision for credit losses | 29 | | | 143 | | | 26 | | | (80) | | | 12 | |
| Noninterest expense | 1,506 | | | 1,679 | | | 1,630 | | | (10) | | | (8) | |
| | | | | | | | | | | |
| Net income | $ | 1,182 | | | 986 | | | 1,281 | | | 20 | | | (8) | |
| | | | | | | | | | | |
Average balances (in billions) | | | | | | | | | |
| Loans | $ | 224.4 | | | 223.9 | | | 225.8 | | | — | | | (1) | |
| Deposits | 166.9 | | | 164.0 | | | 166.7 | | | 2 | | | — | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
1In second quarter 2024, we prospectively transferred our commercial auto business from Asset-Based Lending and Leasing to Middle Market Banking.
Second Quarter 2024 vs. Second Quarter 2023
◦Revenue decreased 7%
▪Middle Market Banking was down 2% driven by lower net interest income reflecting the impact of higher interest rates on deposit costs, partially offset by higher treasury management fees
▪Asset-Based Lending and Leasing was down 17% and included lower net interest income, lease income, and revenue from equity investments
◦Noninterest expense decreased 8% on lower personnel expense reflecting the impact of efficiency initiatives, and lower operating costs
Corporate and Investment Banking delivers a suite of capital markets, banking and financial products and services to corporate, commercial real estate, government and institutional clients globally. Products and services include corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity and fixed income solutions, as well as sales, trading, and research capabilities.
Selected Financial Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from |
| | Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 |
Earnings (in millions) | | | | | | | | | |
| Banking: | | | | | | | | | |
| | Lending | $ | 688 | | | 681 | | | 685 | | | 1 | % | | — | |
| | Treasury Management and Payments | 687 | | | 686 | | | 762 | | | — | | | (10) | |
| | Investment Banking | 430 | | | 474 | | | 311 | | | (9) | | | 38 | |
| Total Banking | 1,805 | | | 1,841 | | | 1,758 | | | (2) | | | 3 | |
| Commercial Real Estate | 1,283 | | | 1,223 | | | 1,333 | | | 5 | | | (4) | |
| Markets: | | | | | | | | | |
| | Fixed Income, Currencies, and Commodities (FICC) | 1,228 | | | 1,359 | | | 1,133 | | | (10) | | | 8 | |
| | Equities | 558 | | | 450 | | | 397 | | | 24 | | | 41 | |
| | Credit Adjustment (CVA/DVA) and Other | 7 | | | 19 | | | 14 | | | (63) | | | (50) | |
| Total Markets | 1,793 | | | 1,828 | | | 1,544 | | | (2) | | | 16 | |
| Other | (43) | | | 90 | | | (4) | | | NM | | NM |
| Total revenue | 4,838 | | | 4,982 | | | 4,631 | | | (3) | | | 4 | |
| Provision for credit losses | 285 | | | 5 | | | 933 | | | NM | | (69) | |
| Noninterest expense | 2,170 | | | 2,330 | | | 2,087 | | | (7) | | | 4 | |
| | | | | | | | | | | |
| Net income | $ | 1,785 | | | 1,981 | | | 1,210 | | | (10) | | | 48 | |
| | | | | | | | | | | |
Average balances (in billions) | | | | | | | | | |
| Loans | $ | 275.8 | | | 283.2 | | | 291.5 | | | (3) | | | (5) | |
| Deposits | 187.5 | | | 183.3 | | | 160.3 | | | 2 | | | 17 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
NM – Not meaningful
Second Quarter 2024 vs. Second Quarter 2023
◦Revenue increased 4%
▪Banking was up 3% driven by higher investment banking revenue on increased activity across all products, partially offset by lower treasury management results driven by the impact of higher interest rates on deposit costs
▪Commercial Real Estate was down 4% and included the impact of lower loan balances, partially offset by higher commercial mortgage-backed securities volumes
▪Markets was up 16% driven by higher revenue in equities, structured products, and credit products, partially offset by lower revenue in rates products
◦Noninterest expense increased 4% driven by higher operating costs, partially offset by the impact of efficiency initiatives
Wealth and Investment Management provides personalized wealth management, brokerage, financial planning, lending, private banking, trust and fiduciary products and services to affluent, high-net worth and ultra-high-net worth clients. We operate through financial advisors in our brokerage and wealth offices, consumer bank branches, independent offices, and digitally through WellsTrade® and Intuitive Investor®.
Selected Financial Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from |
| Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 |
Earnings (in millions) | | | | | | | | | |
| Net interest income | $ | 906 | | | 869 | | | 1,009 | | | 4 | % | | (10) | |
| Noninterest income | 2,952 | | | 2,873 | | | 2,639 | | | 3 | | | 12 | |
| Total revenue | 3,858 | | | 3,742 | | | 3,648 | | | 3 | | | 6 | |
| Provision for credit losses | (14) | | | 3 | | | 24 | | | NM | | NM |
| Noninterest expense | 3,193 | | | 3,230 | | | 2,974 | | | (1) | | | 7 | |
| | | | | | | | | | |
| Net income | $ | 484 | | | 381 | | | 487 | | | 27 | | | (1) | |
| | | | | | | | | | |
Total client assets (in billions) | 2,200 | | | 2,186 | | | 1,998 | | | 1 | | | 10 | |
| | | | | | | | | | |
Average balances (in billions) | | | | | | | | | |
| Loans | $ | 83.2 | | | 82.5 | | | 83.0 | | | 1 | | | — | |
| Deposits | 102.8 | | | 101.5 | | | 112.4 | | | 1 | | | (8) | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
NM – Not meaningful
Second Quarter 2024 vs. Second Quarter 2023
◦Revenue increased 6%
▪Net interest income was down 10% driven by lower deposit balances and higher deposit costs as customers reallocated cash into higher yielding alternatives
▪Noninterest income was up 12% on higher asset-based fees driven by an increase in market valuations
◦Noninterest expense increased 7% due to higher revenue-related compensation and higher operating losses, partially offset by lower operating costs and the impact of efficiency initiatives
Corporate includes corporate treasury and enterprise functions, net of allocations (including funds transfer pricing, capital, liquidity and certain expenses), in support of the reportable operating segments, as well as our investment portfolio and venture capital and private equity investments. Corporate also includes certain lines of business that management has determined are no longer consistent with the long-term strategic goals of the Company as well as results for previously divested businesses.
Selected Financial Information
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from |
| Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 |
Earnings (in millions) | | | | | | | | | |
| Net interest income | $ | (144) | | | 32 | | | (91) | | | NM | | (58) | |
| Noninterest income | 392 | | | 291 | | | 121 | | | 35 | % | | 224 | |
| Total revenue | 248 | | | 323 | | | 30 | | | (23) | | | 727 | |
| Provision for credit losses | 4 | | | (1) | | | (144) | | | 500 | | | 103 | |
| Noninterest expense | 723 | | | 1,075 | | | 269 | | | (33) | | | 169 | |
| | | | | | | | | | |
| Net income (loss) | $ | (318) | | | (435) | | | 46 | | | 27 | | | NM |
NM – Not meaningful
Second Quarter 2024 vs. Second Quarter 2023
◦Revenue increased $218 million reflecting improved results from our venture capital investments
◦Noninterest expense increased and included higher operating losses and FDIC assessments
Conference Call
The Company will host a live conference call on Friday, July 12, at 10:00 a.m. ET. You may listen to the call by dialing 1-888-673-9782 (U.S. and Canada) or 312-470-7126 (International/U.S. Toll) and enter passcode: 7928529#. The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and
https://metroconnectionsevents.com/WF2Qearnings0724.
A replay of the conference call will be available from approximately 1:00 p.m. ET on Friday, July 12 through
Friday, July 26. Please dial 1-866-361-4944 (U.S. and Canada) or 203-369-0192 (International/U.S. Toll) and enter passcode: 5714#. The replay will also be available online at
https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and
https://metroconnectionsevents.com/WF2Qearnings0724.
Forward-Looking Statements
This document contains forward-looking statements. In addition, we may make forward-looking statements in our other documents filed or furnished with the Securities and Exchange Commission, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can” and similar references to future periods. In particular, forward-looking statements include, but are not limited to, statements we make about: (i) the future operating or financial performance of the Company, including our outlook for future growth; (ii) our expectations regarding noninterest expense and our efficiency ratio; (iii) future credit quality and performance, including our expectations regarding future loan losses, our allowance for credit losses, and the economic scenarios considered to develop the allowance; (iv) our expectations regarding net interest income and net interest margin; (v) loan growth or the reduction or mitigation of risk in our loan portfolios; (vi) future capital or liquidity levels, ratios or targets; (vii) our expectations regarding our mortgage business and any related commitments or exposures; (viii) the expected outcome and impact of legal, regulatory and legislative developments, as well as our expectations regarding compliance therewith; (ix) future common stock dividends, common share repurchases and other uses of capital; (x) our targeted range for return on assets, return on equity, and return on tangible common equity; (xi) expectations regarding our effective income tax rate; (xii) the outcome of contingencies, such as legal actions; (xiii) environmental, social and governance related goals or commitments; and (xiv) the Company’s plans, objectives and strategies.
Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:
•current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, declines in commercial real estate prices, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
•our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
•current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services;
•our ability to realize any efficiency ratio or expense target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;
•the effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
•significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of impairment of securities held in our debt securities and equity securities portfolios;
•the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage and wealth management businesses;
•developments in our mortgage banking business, including any negative effects relating to our mortgage servicing, loan modification or foreclosure practices, and any changes in industry standards, regulatory or judicial requirements, or our strategic plans for the business;
•negative effects from instances where customers may have experienced financial harm, including on our legal, operational and compliance costs, our ability to engage in certain business activities or offer certain products or services, our ability to keep and attract customers, our ability to attract and retain qualified employees, and our reputation;
•regulatory matters, including the failure to resolve outstanding matters on a timely basis and the potential impact of new matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;
•a failure in or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks;
•the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
•fiscal and monetary policies of the Federal Reserve Board;
•changes to tax laws, regulations, and guidance as well as the effect of discrete items on our effective income tax rate;
•our ability to develop and execute effective business plans and strategies; and
•the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023.
In addition to the above factors, we also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, the impact to our balance sheet of expected customer activity, our capital requirements and long-term targeted capital structure, the results of supervisory stress tests, market conditions (including the trading price of our stock), regulatory and legal considerations, including regulatory requirements under the Federal Reserve Board’s capital plan rule, and other factors deemed relevant by the Company, and may be subject to regulatory approval or conditions.
For additional information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov6.
Any forward-looking statement made by us speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Forward-looking Non-GAAP Financial Measures. From time to time management may discuss forward-looking non-GAAP financial measures, such as forward-looking estimates or targets for return on average tangible common equity. We are unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because we are unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant to future results.
6 We do not control this website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 34 on Fortune’s 2024 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy.
Contact Information
Media
Beth Richek, 704-374-2545
beth.richek@wellsfargo.com
or
Investor Relations
John M. Campbell, 415-396-0523
john.m.campbell@wellsfargo.com
# # #
2Q24 Quarterly Supplement
Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
| | | | | |
| Page |
Consolidated Results | |
| |
| |
| |
| |
| |
| |
| |
| |
Average Balances and Interest Rates (Taxable-Equivalent Basis) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Reportable Operating Segment Results | |
| |
Consumer Banking and Lending | |
Commercial Banking | |
Corporate and Investment Banking | |
Wealth and Investment Management | |
Corporate | |
| |
Credit-Related Information | |
Consolidated Loans Outstanding – Period-End Balances, Average Balances, and Average Interest Rates | |
Net Loan Charge-offs | |
Changes in Allowance for Credit Losses for Loans | |
Allocation of the Allowance for Credit Losses for Loans | |
| |
| |
| |
Commercial and Industrial Loans and Lease Financing by Industry | |
Commercial Real Estate Loans by Property Type | |
| |
Equity | |
Tangible Common Equity | |
| |
Risk-Based Capital Ratios Under Basel III – Standardized Approach | |
Risk-Based Capital Ratios Under Basel III – Advanced Approach | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
(in millions, except ratios and per share amounts) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Selected Income Statement Data | | | | | | | | | | | | | | | | | | | |
Total revenue | $ | 20,689 | | | 20,863 | | | 20,478 | | | 20,857 | | | 20,533 | | | (1) | % | | 1 | | | $ | 41,552 | | | 41,262 | | | 1 | % |
Noninterest expense | 13,293 | | | 14,338 | | | 15,786 | | | 13,113 | | | 12,987 | | | (7) | | | 2 | | | 27,631 | | | 26,663 | | | 4 | |
Pre-tax pre-provision profit (PTPP) (1) | 7,396 | | | 6,525 | | | 4,692 | | | 7,744 | | | 7,546 | | | 13 | | | (2) | | | 13,921 | | | 14,599 | | | (5) | |
Provision for credit losses (2) | 1,236 | | | 938 | | | 1,282 | | | 1,197 | | | 1,713 | | | 32 | | | (28) | | | 2,174 | | | 2,920 | | | (26) |
Wells Fargo net income | 4,910 | | | 4,619 | | | 3,446 | | | 5,767 | | | 4,938 | | | 6 | | | (1) | | | 9,529 | | | 9,929 | | | (4) |
Wells Fargo net income applicable to common stock | 4,640 | | | 4,313 | | | 3,160 | | | 5,450 | | | 4,659 | | | 8 | | | — | | | 8,953 | | | 9,372 | | | (4) |
| | | | | | | | | | | | | | | | | | | |
Common Share Data | | | | | | | | | | | | | | | | | | | |
Diluted earnings per common share | 1.33 | | | 1.20 | | | 0.86 | | | 1.48 | | | 1.25 | | | 11 | | | 6 | | | 2.53 | | | 2.48 | | | 2 |
Dividends declared per common share | 0.35 | | | 0.35 | | | 0.35 | | | 0.35 | | | 0.30 | | | — | | | 17 | | | 0.70 | | | 0.60 | | | 17 | |
Common shares outstanding | 3,402.7 | | | 3,501.7 | | | 3,598.9 | | | 3,637.9 | | | 3,667.7 | | | (3) | | | (7) | | | | | | | |
Average common shares outstanding | 3,448.3 | | | 3,560.1 | | | 3,620.9 | | | 3,648.8 | | | 3,699.9 | | | (3) | | | (7) | | | 3,504.2 | | | 3,742.6 | | | (6) | |
Diluted average common shares outstanding | 3,486.2 | | | 3,600.1 | | | 3,657.0 | | | 3,680.6 | | | 3,724.9 | | | (3) | | | (6) | | | 3,543.2 | | | 3,772.4 | | | (6) | |
Book value per common share (3) | $ | 47.01 | | | 46.40 | | | 46.25 | | | 44.37 | | | 43.87 | | | 1 | | | 7 | | | | | | | |
Tangible book value per common share (3)(4) | 39.57 | | | 39.17 | | | 39.23 | | | 37.43 | | | 36.53 | | | 1 | | | 8 | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Selected Equity Data (period-end) | | | | | | | | | | | | | | | | | | | |
Total equity | 178,148 | | | 182,674 | | | 187,443 | | | 182,373 | | | 181,952 | | | (2) | | | (2) | | | | | | | |
Common stockholders' equity | 159,963 | | | 162,481 | | | 166,444 | | | 161,424 | | | 160,916 | | | (2) | | | (1) | | | | | | | |
Tangible common equity (4) | 134,660 | | | 137,163 | | | 141,193 | | | 136,153 | | | 133,990 | | | (2) | | | 1 | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Performance Ratios | | | | | | | | | | | | | | | | | | | |
Return on average assets (ROA) (5) | 1.03 | % | | 0.97 | | | 0.72 | | | 1.21 | | | 1.05 | | | | | | | 1.00 | % | | 1.07 | | | |
Return on average equity (ROE) (6) | 11.5 | | | 10.5 | | | 7.6 | | | 13.3 | | | 11.4 | | | | | | | 11.0 | | | 11.6 | | | |
Return on average tangible common equity (ROTCE) (4) | 13.7 | | | 12.3 | | | 9.0 | | | 15.9 | | | 13.7 | | | | | | | 13.0 | | | 13.9 | | | |
Efficiency ratio (7) | 64 | | | 69 | | | 77 | | | 63 | | | 63 | | | | | | | 66 | | | 65 | | | |
Net interest margin on a taxable-equivalent basis | 2.75 | | | 2.81 | | | 2.92 | | | 3.03 | | | 3.09 | | | | | | | 2.78 | | | 3.14 | | | |
Average deposit cost | 1.84 | | | 1.74 | | | 1.58 | | | 1.36 | | | 1.13 | | | | | | | 1.79 | | | 0.98 | | | |
(1)Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(2)Includes provision for credit losses for loans, debt securities, and other financial assets.
(3)Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.
(4)Tangible common equity, tangible book value per common share, and return on average tangible common equity are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on pages 25 and 26.
(5)Represents Wells Fargo net income divided by average assets.
(6)Represents Wells Fargo net income applicable to common stock divided by average common stockholders’ equity.
(7)The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions, unless otherwise noted) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Selected Balance Sheet Data (average) | | | | | | | | | | | | | | | | | | | |
Loans | $ | 916,977 | | | 928,075 | | | 938,041 | | | 943,193 | | | 945,906 | | | (1) | % | | (3) | | | $ | 922,526 | | | 947,271 | | | (3) | % |
Assets | 1,914,647 | | | 1,916,974 | | | 1,907,535 | | | 1,891,883 | | | 1,878,253 | | | — | | | 2 | | | 1,915,810 | | | 1,871,005 | | | 2 | |
Deposits | 1,346,478 | | | 1,341,628 | | | 1,340,916 | | | 1,340,307 | | | 1,347,449 | | | — | | | — | | | 1,344,052 | | | 1,352,046 | | | (1) | |
| | | | | | | | | | | | | | | | | | | |
Selected Balance Sheet Data (period-end) | | | | | | | | | | | | | | | | | | | |
Debt securities | 520,254 | | | 506,280 | | | 490,458 | | | 490,726 | | | 503,468 | | | 3 | | | 3 | | | | | | | |
Loans | 917,907 | | | 922,784 | | | 936,682 | | | 942,424 | | | 947,960 | | | (1) | | | (3) | | | | | | | |
Allowance for credit losses for loans | 14,789 | | | 14,862 | | | 15,088 | | | 15,064 | | | 14,786 | | | — | | | — | | | | | | | |
Equity securities | 60,763 | | | 59,556 | | | 57,336 | | | 56,026 | | | 67,471 | | | 2 | | | (10) | | | | | | | |
Assets | 1,940,073 | | | 1,959,153 | | | 1,932,468 | | | 1,909,261 | | | 1,876,320 | | | (1) | | | 3 | | | | | | | |
Deposits | 1,365,894 | | | 1,383,147 | | | 1,358,173 | | | 1,354,010 | | | 1,344,584 | | | (1) | | | 2 | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Headcount (#) (period-end) | 222,544 | | | 224,824 | | | 225,869 | | | 227,363 | | | 233,834 | | | (1) | | | (5) | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Capital and other metrics (1) | | | | | | | | | | | | | | | | | | | |
Risk-based capital ratios and components (2): | | | | | | | | | | | | | | | | | | | |
Standardized Approach: | | | | | | | | | | | | | | | | | | | |
Common Equity Tier 1 (CET1) | 11.0 | % | | 11.2 | | | 11.4 | | | 11.0 | | | 10.7 | | | | | | | | | | | |
Tier 1 capital | 12.4 | | | 12.7 | | | 13.0 | | | 12.6 | | | 12.2 | | | | | | | | | | | |
Total capital | 15.0 | | | 15.4 | | | 15.7 | | | 15.3 | | | 15.0 | | | | | | | | | | | |
Risk-weighted assets (RWAs) (in billions) | $ | 1,218.4 | | | 1,221.6 | | | 1,231.7 | | | 1,237.1 | | | 1,250.7 | | | — | | | (3) | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Advanced Approach: | | | | | | | | | | | | | | | | | | | |
Common Equity Tier 1 (CET1) | 12.3 | % | | 12.4 | | | 12.6 | | | 12.0 | | | 12.0 | | | | | | | | | | | |
Tier 1 capital | 13.8 | | | 14.1 | | | 14.3 | | | 13.7 | | | 13.7 | | | | | | | | | | | |
Total capital | 15.8 | | | 16.2 | | | 16.4 | | | 15.8 | | | 15.8 | | | | | | | | | | | |
Risk-weighted assets (RWAs) (in billions) | $ | 1,091.4 | | | 1,099.6 | | | 1,114.3 | | | 1,130.8 | | | 1,118.4 | | | (1) | | | (2) | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | 8.0 | % | | 8.2 | | | 8.5 | | | 8.3 | | | 8.3 | | | | | | | | | | | |
Supplementary Leverage Ratio (SLR) | 6.7 | | | 6.9 | | | 7.1 | | | 6.9 | | | 6.9 | | | | | | | | | | | |
Total Loss Absorbing Capacity (TLAC) Ratio (3) | 24.8 | | | 25.1 | | | 25.0 | | | 24.0 | | | 23.1 | | | | | | | | | | | |
Liquidity Coverage Ratio (LCR) (4) | 124 | | | 126 | | | 125 | | | 123 | | | 123 | | | | | | | | | | | |
(1)Ratios and metrics for June 30, 2024, are preliminary estimates.
(2)See the tables on pages 27 and 28 for more information on CET1, tier 1 capital, and total capital.
(3)Represents TLAC divided by risk-weighted assets (RWAs), which is our binding TLAC ratio, determined by using the greater of RWAs under the Standardized and Advanced Approaches.
(4)Represents average high-quality liquid assets divided by average projected net cash outflows, as each is defined under the LCR rule.
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
(in millions, except per share amounts) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Interest income | $ | 22,884 | | | 22,840 | | | 22,839 | | | 22,093 | | | 20,830 | | | — | % | | 10 | | | $ | 45,724 | | | 40,186 | | | 14 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Interest expense | 10,961 | | | 10,613 | | | 10,068 | | | 8,988 | | | 7,667 | | | 3 | | | 43 | | | 21,574 | | | 13,687 | | | 58 | |
Net interest income | 11,923 | | | 12,227 | | | 12,771 | | | 13,105 | | | 13,163 | | | (2) | | | (9) | | | 24,150 | | | 26,499 | | | (9) | |
Noninterest income | | | | | | | | | | | | | | | | | | | |
Deposit-related fees | 1,249 | | | 1,230 | | | 1,202 | | | 1,179 | | | 1,165 | | | 2 | | | 7 | | | 2,479 | | | 2,313 | | | 7 | |
Lending-related fees | 369 | | | 367 | | | 366 | | | 372 | | | 352 | | | 1 | | | 5 | | | 736 | | | 708 | | | 4 | |
Investment advisory and other asset-based fees | 2,415 | | | 2,331 | | | 2,169 | | | 2,224 | | | 2,163 | | | 4 | | | 12 | | | 4,746 | | | 4,277 | | | 11 | |
Commissions and brokerage services fees | 614 | | | 626 | | | 619 | | | 567 | | | 570 | | | (2) | | | 8 | | | 1,240 | | | 1,189 | | | 4 | |
Investment banking fees | 641 | | | 627 | | | 455 | | | 492 | | | 376 | | | 2 | | | 70 | | | 1,268 | | | 702 | | | 81 | |
Card fees | 1,101 | | | 1,061 | | | 1,027 | | | 1,098 | | | 1,098 | | | 4 | | | — | | | 2,162 | | | 2,131 | | | 1 | |
Mortgage banking | 243 | | | 230 | | | 202 | | | 193 | | | 202 | | | 6 | | | 20 | | | 473 | | | 434 | | | 9 | |
Net gains from trading activities | 1,442 | | | 1,454 | | | 1,070 | | | 1,265 | | | 1,122 | | | (1) | | | 29 | | | 2,896 | | | 2,464 | | | 18 | |
Net gains (losses) from debt securities | — | | | (25) | | | — | | | 6 | | | 4 | | | 100 | | (100) | | | (25) | | | 4 | | | NM |
Net gains (losses) from equity securities | 80 | | | 18 | | | 35 | | | (25) | | | (94) | | | 344 | | | 185 | | | 98 | | | (451) | | | 122 |
Lease income | 292 | | | 421 | | | 292 | | | 291 | | | 307 | | | (31) | | | (5) | | | 713 | | | 654 | | | 9 | |
Other | 320 | | | 296 | | | 270 | | | 90 | | | 105 | | | 8 | | | 205 | | | 616 | | | 338 | | | 82 | |
Total noninterest income | 8,766 | | | 8,636 | | | 7,707 | | | 7,752 | | | 7,370 | | | 2 | | | 19 | | | 17,402 | | | 14,763 | | | 18 | |
Total revenue | 20,689 | | | 20,863 | | | 20,478 | | | 20,857 | | | 20,533 | | | (1) | | | 1 | | | 41,552 | | | 41,262 | | | 1 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Provision for credit losses (1) | 1,236 | | | 938 | | | 1,282 | | | 1,197 | | | 1,713 | | | 32 | | | (28) | | | 2,174 | | | 2,920 | | | (26) | |
Noninterest expense | | | | | | | | | | | | | | | | | | | |
Personnel | 8,575 | | | 9,492 | | | 9,181 | | | 8,627 | | | 8,606 | | | (10) | | | — | | | 18,067 | | | 18,021 | | | — | |
Technology, telecommunications and equipment | 1,106 | | | 1,053 | | | 1,076 | | | 975 | | | 947 | | | 5 | | | 17 | | | 2,159 | | | 1,869 | | | 16 | |
Occupancy | 763 | | | 714 | | | 740 | | | 724 | | | 707 | | | 7 | | | 8 | | | 1,477 | | | 1,420 | | | 4 | |
Operating losses | 493 | | | 633 | | | 355 | | | 329 | | | 232 | | | (22) | | | 113 | | | 1,126 | | | 499 | | | 126 | |
Professional and outside services | 1,139 | | | 1,101 | | | 1,242 | | | 1,310 | | | 1,304 | | | 3 | | | (13) | | | 2,240 | | | 2,533 | | | (12) | |
Leases (2) | 159 | | | 164 | | | 168 | | | 172 | | | 180 | | | (3) | | | (12) | | | 323 | | | 357 | | | (10) | |
Advertising and promotion | 224 | | | 197 | | | 259 | | | 215 | | | 184 | | | 14 | | | 22 | | | 421 | | | 338 | | | 25 | |
Other | 834 | | | 984 | | | 2,765 | | | 761 | | | 827 | | | (15) | | | 1 | | | 1,818 | | | 1,626 | | | 12 | |
Total noninterest expense | 13,293 | | | 14,338 | | | 15,786 | | | 13,113 | | | 12,987 | | | (7) | | | 2 | | | 27,631 | | | 26,663 | | | 4 | |
Income before income tax expense (benefit) | 6,160 | | | 5,587 | | | 3,410 | | | 6,547 | | | 5,833 | | | 10 | | | 6 | | | 11,747 | | | 11,679 | | | 1 | |
Income tax expense (benefit) | 1,251 | | | 964 | | | (100) | | | 811 | | | 930 | | | 30 | | 35 | | | 2,215 | | | 1,896 | | | 17 | |
Net income before noncontrolling interests | 4,909 | | | 4,623 | | | 3,510 | | | 5,736 | | | 4,903 | | | 6 | | | — | | | 9,532 | | | 9,783 | | | (3) | |
Less: Net income (loss) from noncontrolling interests | (1) | | | 4 | | | 64 | | | (31) | | | (35) | | | NM | | 97 | | | 3 | | | (146) | | | 102 |
Wells Fargo net income | $ | 4,910 | | | 4,619 | | | 3,446 | | | 5,767 | | | 4,938 | | | 6 | % | | (1) | | | $ | 9,529 | | | 9,929 | | | (4) | % |
Less: Preferred stock dividends and other | 270 | | | 306 | | | 286 | | | 317 | | | 279 | | | (12) | | | (3) | | | 576 | | | 557 | | | 3 | |
Wells Fargo net income applicable to common stock | $ | 4,640 | | | 4,313 | | | 3,160 | | | 5,450 | | | 4,659 | | | 8 | % | | — | | | $ | 8,953 | | | 9,372 | | | (4) | % |
Per share information | | | | | | | | | | | | | | | | | | | |
Earnings per common share | $ | 1.35 | | | 1.21 | | | 0.87 | | | 1.49 | | | 1.26 | | | 12 | % | | 7 | | | $ | 2.56 | | | 2.50 | | | 2 | % |
Diluted earnings per common share | 1.33 | | | 1.20 | | | 0.86 | | | 1.48 | | | 1.25 | | | 11 | | | 6 | | | 2.53 | | | 2.48 | | | 2 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
NM – Not meaningful
(1)Includes provision for credit losses for loans, debt securities, and other financial assets.
(2)Represents expenses for assets we lease to customers.
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Jun 30, 2024 % Change from |
(in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 |
Assets | | | | | | | | | | | | | |
Cash and due from banks | $ | 32,701 | | | 30,180 | | | 33,026 | | | 30,815 | | | 31,915 | | | 8 | % | | 2 | |
Interest-earning deposits with banks | 199,322 | | | 239,467 | | | 204,193 | | | 187,081 | | | 123,418 | | | (17) | | | 62 | |
| | | | | | | | | | | | | |
Federal funds sold and securities purchased under resale agreements | 82,259 | | | 68,751 | | | 80,456 | | | 70,431 | | | 66,500 | | | 20 | | | 24 | |
Debt securities: | | | | | | | | | | | | | |
Trading, at fair value | 120,766 | | | 109,324 | | | 97,302 | | | 97,075 | | | 96,857 | | | 10 | | | 25 | |
Available-for-sale, at fair value | 148,752 | | | 138,245 | | | 130,448 | | | 126,437 | | | 134,251 | | | 8 | | | 11 | |
Held-to-maturity, at amortized cost | 250,736 | | | 258,711 | | | 262,708 | | | 267,214 | | | 272,360 | | | (3) | | | (8) | |
Loans held for sale | 7,312 | | | 5,473 | | | 4,936 | | | 4,308 | | | 6,029 | | | 34 | | | 21 | |
Loans | 917,907 | | | 922,784 | | | 936,682 | | | 942,424 | | | 947,960 | | | (1) | | | (3) | |
Allowance for loan losses | (14,360) | | | (14,421) | | | (14,606) | | | (14,554) | | | (14,258) | | | — | | | (1) | |
Net loans | 903,547 | | | 908,363 | | | 922,076 | | | 927,870 | | | 933,702 | | | (1) | | | (3) | |
Mortgage servicing rights | 8,027 | | | 8,248 | | | 8,508 | | | 9,526 | | | 9,345 | | | (3) | | | (14) | |
Premises and equipment, net | 9,648 | | | 9,426 | | | 9,266 | | | 8,559 | | | 8,392 | | | 2 | | | 15 | |
Goodwill | 25,172 | | | 25,173 | | | 25,175 | | | 25,174 | | | 25,175 | | | — | | | — | |
Derivative assets | 18,721 | | | 17,653 | | | 18,223 | | | 21,096 | | | 17,990 | | | 6 | | | 4 | |
Equity securities | 60,763 | | | 59,556 | | | 57,336 | | | 56,026 | | | 67,471 | | | 2 | | | (10) | |
Other assets | 72,347 | | | 80,583 | | | 78,815 | | | 77,649 | | | 82,915 | | | (10) | | | (13) | |
Total assets | $ | 1,940,073 | | | 1,959,153 | | | 1,932,468 | | | 1,909,261 | | | 1,876,320 | | | (1) | | | 3 | |
Liabilities | | | | | | | | | | | | | |
Noninterest-bearing deposits | $ | 348,525 | | | 356,162 | | | 360,279 | | | 384,330 | | | 402,322 | | | (2) | | | (13) | |
Interest-bearing deposits | 1,017,369 | | | 1,026,985 | | | 997,894 | | | 969,680 | | | 942,262 | | | (1) | | | 8 | |
Total deposits | 1,365,894 | | | 1,383,147 | | | 1,358,173 | | | 1,354,010 | | | 1,344,584 | | | (1) | | | 2 | |
Short-term borrowings (1) | 118,834 | | | 109,014 | | | 89,559 | | | 93,330 | | | 84,255 | | | 9 | | | 41 | |
Derivative liabilities | 16,237 | | | 17,116 | | | 18,495 | | | 23,463 | | | 21,431 | | | (5) | | | (24) | |
Accrued expenses and other liabilities | 81,824 | | | 79,438 | | | 71,210 | | | 66,050 | | | 73,466 | | | 3 | | | 11 | |
Long-term debt (2) | 179,136 | | | 187,764 | | | 207,588 | | | 190,035 | | | 170,632 | | | (5) | | | 5 | |
Total liabilities | 1,761,925 | | | 1,776,479 | | | 1,745,025 | | | 1,726,888 | | | 1,694,368 | | | (1) | | | 4 | |
Equity | | | | | | | | | | | | | |
Wells Fargo stockholders’ equity: | | | | | | | | | | | | | |
Preferred stock | 16,608 | | | 18,608 | | | 19,448 | | | 19,448 | | | 19,448 | | | (11) | | | (15) | |
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares | 9,136 | | | 9,136 | | | 9,136 | | | 9,136 | | | 9,136 | | | — | | | — | |
Additional paid-in capital | 60,373 | | | 60,131 | | | 60,555 | | | 60,365 | | | 60,173 | | | — | | | — | |
Retained earnings | 207,281 | | | 203,870 | | | 201,136 | | | 199,287 | | | 195,164 | | | 2 | | | 6 | |
Accumulated other comprehensive income (loss) | (12,721) | | | (12,546) | | | (11,580) | | | (15,877) | | | (13,441) | | | (1) | | | 5 | |
Treasury stock (3) | (104,247) | | | (98,256) | | | (92,960) | | | (91,215) | | | (89,860) | | | (6) | | | (16) | |
Unearned ESOP shares | — | | | — | | | — | | | (429) | | | (429) | | | NM | | 100 | |
Total Wells Fargo stockholders’ equity | 176,430 | | | 180,943 | | | 185,735 | | | 180,715 | | | 180,191 | | | (2) | | | (2) | |
Noncontrolling interests | 1,718 | | | 1,731 | | | 1,708 | | | 1,658 | | | 1,761 | | | (1) | | | (2) | |
Total equity | 178,148 | | | 182,674 | | | 187,443 | | | 182,373 | | | 181,952 | | | (2) | | | (2) | |
Total liabilities and equity | $ | 1,940,073 | | | 1,959,153 | | | 1,932,468 | | | 1,909,261 | | | 1,876,320 | | | (1) | | | 3 | |
NM – Not meaningful
(1)Includes $1.0 billion, $8.0 billion, $0.0 billion, $0.0 billion, and $2.0 billion of Federal Home Loan Bank (FHLB) advances at June 30, and March 31, 2024, and December 31, September 30, and June 30, 2023, respectively.
(2)Includes $11.0 billion, $20.0 billion, $38.0 billion, $36.0 billion, and $23.0 billion of FHLB advances at June 30, and March 31, 2024, and December 31, September 30, and June 30, 2023, respectively.
(3)Number of shares of treasury stock were 2,079,100,421, 1,980,132,879, 1,882,948,892, 1,843,884,672, and 1,814,145,600 at June 30, and March 31, 2024, and December 31, September 30, and June 30, 2023, respectively.
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES AND INTEREST RATES (TAXABLE-EQUIVALENT BASIS) (1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | % Change |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | |
Average Balances | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | |
Interest-earning deposits with banks | $ | 196,436 | | | 207,568 | | | 193,647 | | | 158,893 | | | 129,236 | | | (5) | % | | 52 | | | $ | 202,002 | | | 122,087 | | | 65 | % |
Federal funds sold and securities purchased under resale agreements | 71,769 | | | 69,719 | | | 72,626 | | | 68,715 | | | 69,505 | | | 3 | | | 3 | | | 70,744 | | | 69,071 | | | 2 | |
Trading debt securities | 120,590 | | | 112,170 | | | 109,340 | | | 109,802 | | | 102,605 | | | 8 | | | 18 | | | 116,380 | | | 99,522 | | | 17 | |
Available-for-sale debt securities | 150,024 | | | 139,986 | | | 136,389 | | | 139,511 | | | 149,320 | | | 7 | | | — | | | 145,005 | | | 147,616 | | | (2) | |
Held-to-maturity debt securities | 258,631 | | | 264,755 | | | 268,905 | | | 273,948 | | | 279,093 | | | (2) | | | (7) | | | 261,693 | | | 279,522 | | | (6) | |
Loans held for sale | 7,091 | | | 5,835 | | | 4,990 | | | 5,437 | | | 6,031 | | | 22 | | | 18 | | | 6,463 | | | 6,320 | | | 2 | |
Loans | 916,977 | | | 928,075 | | | 938,041 | | | 943,193 | | | 945,906 | | | (1) | | | (3) | | | 922,526 | | | 947,271 | | | (3) | |
Equity securities | 26,332 | | | 21,350 | | | 22,198 | | | 25,019 | | | 27,891 | | | 23 | | | (6) | | | 23,841 | | | 28,269 | | | (16) | |
Other | 8,128 | | | 8,940 | | | 8,861 | | | 8,565 | | | 10,118 | | | (9) | | | (20) | | | 8,534 | | | 10,578 | | | (19) | |
Total interest-earning assets | 1,755,978 | | | 1,758,398 | | | 1,754,997 | | | 1,733,083 | | | 1,719,705 | | | — | | | 2 | | | 1,757,188 | | | 1,710,256 | | | 3 | |
Total noninterest-earning assets | 158,669 | | | 158,576 | | | 152,538 | | | 158,800 | | | 158,548 | | | — | | | — | | | 158,622 | | | 160,749 | | | (1) | |
Total assets | $ | 1,914,647 | | | 1,916,974 | | | 1,907,535 | | | 1,891,883 | | | 1,878,253 | | | — | | | 2 | | | $ | 1,915,810 | | | 1,871,005 | | | 2 | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | $ | 1,006,806 | | | 996,874 | | | 974,890 | | | 953,500 | | | 936,886 | | | 1 | | | 7 | | | $ | 1,001,840 | | | 928,602 | | | 8 | |
Short-term borrowings | 106,685 | | | 94,988 | | | 92,032 | | | 90,078 | | | 83,059 | | | 12 | | | 28 | | | 100,836 | | | 70,845 | | | 42 | |
Long-term debt | 182,201 | | | 197,116 | | | 196,213 | | | 181,955 | | | 170,843 | | | (8) | | | 7 | | | 189,659 | | | 171,700 | | | 10 | |
Other liabilities | 34,613 | | | 32,821 | | | 31,342 | | | 32,564 | | | 34,496 | | | 5 | | | — | | | 33,717 | | | 33,964 | | | (1) | |
Total interest-bearing liabilities | 1,330,305 | | | 1,321,799 | | | 1,294,477 | | | 1,258,097 | | | 1,225,284 | | | 1 | | | 9 | | | 1,326,052 | | | 1,205,111 | | | 10 | |
Noninterest-bearing deposits | 339,672 | | | 344,754 | | | 366,026 | | | 386,807 | | | 410,563 | | | (1) | | | (17) | | | 342,212 | | | 423,444 | | | (19) | |
Other noninterest-bearing liabilities | 63,118 | | | 63,752 | | | 61,179 | | | 62,151 | | | 57,963 | | | (1) | | | 9 | | | 63,435 | | | 58,079 | | | 9 | |
Total liabilities | 1,733,095 | | | 1,730,305 | | | 1,721,682 | | | 1,707,055 | | | 1,693,810 | | | — | | | 2 | | | 1,731,699 | | | 1,686,634 | | | 3 | |
Total equity | 181,552 | | | 186,669 | | | 185,853 | | | 184,828 | | | 184,443 | | | (3) | | | (2) | | | 184,111 | | | 184,371 | | | — | |
Total liabilities and equity | $ | 1,914,647 | | | 1,916,974 | | | 1,907,535 | | | 1,891,883 | | | 1,878,253 | | | — | | | 2 | | | $ | 1,915,810 | | | 1,871,005 | | | 2 | |
| | | | | | | | | | | | | | | | | | | |
Average Interest Rates | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Interest-earning assets | | | | | | | | | | | | | | | | | | | |
Interest-earning deposits with banks | 5.05 | % | | 4.99 | | | 4.98 | | | 4.81 | | | 4.50 | | | | | | | 5.02 | % | | 4.32 | | | |
Federal funds sold and securities purchased under resale agreements | 5.27 | | | 5.28 | | | 5.30 | | | 5.13 | | | 4.73 | | | | | | | 5.28 | | | 4.43 | | | |
Trading debt securities | 4.14 | | | 4.08 | | | 3.82 | | | 3.86 | | | 3.50 | | | | | | | 4.11 | | | 3.42 | | | |
Available-for-sale debt securities | 4.21 | | | 3.99 | | | 3.87 | | | 3.92 | | | 3.72 | | | | | | | 4.11 | | | 3.63 | | | |
Held-to-maturity debt securities | 2.64 | | | 2.70 | | | 2.69 | | | 2.65 | | | 2.62 | | | | | | | 2.67 | | | 2.59 | | | |
Loans held for sale | 7.53 | | | 7.82 | | | 6.75 | | | 6.40 | | | 6.22 | | | | | | | 7.66 | | | 6.05 | | | |
Loans | 6.40 | | | 6.38 | | | 6.35 | | | 6.23 | | | 5.99 | | | | | | | 6.39 | | | 5.84 | | | |
Equity securities | 2.99 | | | 2.82 | | | 2.99 | | | 2.42 | | | 2.79 | | | | | | | 2.91 | | | 2.59 | | | |
Other | 5.42 | | | 5.14 | | | 4.99 | | | 4.93 | | | 4.76 | | | | | | | 5.27 | | | 4.67 | | | |
Total interest-earning assets | 5.25 | | | 5.24 | | | 5.20 | | | 5.09 | | | 4.88 | | | | | | | 5.25 | | | 4.75 | | | |
Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | 2.46 | | | 2.34 | | | 2.17 | | | 1.92 | | | 1.63 | | | | | | | 2.40 | | | 1.43 | | | |
Short-term borrowings | 5.19 | | | 5.16 | | | 5.10 | | | 4.99 | | | 4.64 | | | | | | | 5.17 | | | 4.36 | | | |
Long-term debt | 6.95 | | | 6.80 | | | 6.78 | | | 6.67 | | | 6.31 | | | | | | | 6.87 | | | 6.07 | | | |
Other liabilities | 3.13 | | | 2.88 | | | 2.87 | | | 2.54 | | | 2.41 | | | | | | | 3.01 | | | 2.29 | | | |
Total interest-bearing liabilities | 3.31 | | | 3.22 | | | 3.09 | | | 2.84 | | | 2.51 | | | | | | | 3.27 | | | 2.28 | | | |
| | | | | | | | | | | | | | | | | | | |
Interest rate spread on a taxable-equivalent basis (2) | 1.94 | | | 2.02 | | | 2.11 | | | 2.25 | | | 2.37 | | | | | | | 1.98 | | | 2.47 | | | |
Net interest margin on a taxable-equivalent basis (2) | 2.75 | | | 2.81 | | | 2.92 | | | 3.03 | | | 3.09 | | | | | | | 2.78 | | | 3.14 | | | |
(1)The average balance amounts represent amortized costs. The average interest rates are based on interest income or expense amounts for the period and are annualized, if applicable. Interest rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)Includes taxable-equivalent adjustments of $89 million, $89 million, $104 million, $104 million, and $105 million for the quarters ended June 30, and March 31, 2024, and December 31, September 30, and June 30, 2023, respectively, and $178 million and $212 million for the first half of 2024 and 2023, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 21% for the periods presented.
Wells Fargo & Company and Subsidiaries
COMBINED SEGMENT RESULTS (1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Quarter ended June 30, 2024 |
(in millions) | Consumer Banking and Lending | | Commercial Banking | | Corporate and Investment Banking | | Wealth and Investment Management | | Corporate (2) | | Reconciling Items (3) | | Consolidated Company |
Net interest income | $ | 7,024 | | | 2,281 | | | 1,945 | | | 906 | | | (144) | | | (89) | | | 11,923 | |
Noninterest income | 1,982 | | | 841 | | | 2,893 | | | 2,952 | | | 392 | | | (294) | | | 8,766 | |
Total revenue | 9,006 | | | 3,122 | | | 4,838 | | | 3,858 | | | 248 | | | (383) | | | 20,689 | |
Provision for credit losses | 932 | | | 29 | | | 285 | | | (14) | | | 4 | | | — | | | 1,236 | |
Noninterest expense | 5,701 | | | 1,506 | | | 2,170 | | | 3,193 | | | 723 | | | — | | | 13,293 | |
Income (loss) before income tax expense (benefit) | 2,373 | | | 1,587 | | | 2,383 | | | 679 | | | (479) | | | (383) | | | 6,160 | |
Income tax expense (benefit) | 596 | | | 402 | | | 598 | | | 195 | | | (157) | | | (383) | | | 1,251 | |
Net income (loss) before noncontrolling interests | 1,777 | | | 1,185 | | | 1,785 | | | 484 | | | (322) | | | — | | | 4,909 | |
Less: Net income (loss) from noncontrolling interests | — | | | 3 | | | — | | | — | | | (4) | | | — | | | (1) | |
Net income (loss) | $ | 1,777 | | | 1,182 | | | 1,785 | | | 484 | | | (318) | | | — | | | 4,910 | |
| | | | | | | | | | | | | |
| | | | | | | | | Quarter ended March 31, 2024 |
Net interest income | $ | 7,110 | | | 2,278 | | | 2,027 | | | 869 | | | 32 | | | (89) | | | 12,227 | |
Noninterest income | 1,981 | | | 874 | | | 2,955 | | | 2,873 | | | 291 | | | (338) | | | 8,636 | |
Total revenue | 9,091 | | | 3,152 | | | 4,982 | | | 3,742 | | | 323 | | | (427) | | | 20,863 | |
Provision for credit losses | 788 | | | 143 | | | 5 | | | 3 | | | (1) | | | — | | | 938 | |
Noninterest expense | 6,024 | | | 1,679 | | | 2,330 | | | 3,230 | | | 1,075 | | | — | | | 14,338 | |
Income (loss) before income tax expense (benefit) | 2,279 | | | 1,330 | | | 2,647 | | | 509 | | | (751) | | | (427) | | | 5,587 | |
Income tax expense (benefit) | 573 | | | 341 | | | 666 | | | 128 | | | (317) | | | (427) | | | 964 | |
Net income (loss) before noncontrolling interests | 1,706 | | | 989 | | | 1,981 | | | 381 | | | (434) | | | — | | | 4,623 | |
Less: Net income from noncontrolling interests | — | | | 3 | | | — | | | — | | | 1 | | | — | | | 4 | |
Net income (loss) | $ | 1,706 | | | 986 | | | 1,981 | | | 381 | | | (435) | | | — | | | 4,619 | |
| | | | | | | | | | | | | |
| | | | | | | | | Quarter ended June 30, 2023 |
Net interest income | $ | 7,490 | | | 2,501 | | | 2,359 | | | 1,009 | | | (91) | | | (105) | | | 13,163 | |
Noninterest income | 1,965 | | | 868 | | | 2,272 | | | 2,639 | | | 121 | | | (495) | | | 7,370 | |
Total revenue | 9,455 | | | 3,369 | | | 4,631 | | | 3,648 | | | 30 | | | (600) | | | 20,533 | |
Provision for credit losses | 874 | | | 26 | | | 933 | | | 24 | | | (144) | | | — | | | 1,713 | |
Noninterest expense | 6,027 | | | 1,630 | | | 2,087 | | | 2,974 | | | 269 | | | — | | | 12,987 | |
Income (loss) before income tax expense (benefit) | 2,554 | | | 1,713 | | | 1,611 | | | 650 | | | (95) | | | (600) | | | 5,833 | |
Income tax expense (benefit) | 640 | | | 429 | | | 401 | | | 163 | | | (103) | | | (600) | | | 930 | |
Net income before noncontrolling interests | 1,914 | | | 1,284 | | | 1,210 | | | 487 | | | 8 | | | — | | | 4,903 | |
Less: Net income (loss) from noncontrolling interests | — | | | 3 | | | — | | | — | | | (38) | | | — | | | (35) | |
Net income | $ | 1,914 | | | 1,281 | | | 1,210 | | | 487 | | | 46 | | | — | | | 4,938 | |
(1)The management reporting process is based on U.S. GAAP and includes specific adjustments, such as for funds transfer pricing for asset/liability management, shared revenues and expenses, and taxable-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources, which allows management to assess performance across the operating segments. We define our operating segments by type of product and customer segment.
(2)All other business activities that are not included in the reportable operating segments have been included in Corporate. Corporate includes corporate treasury and enterprise functions, net of allocations (including funds transfer pricing, capital, liquidity and certain expenses), in support of the reportable operating segments, as well as our investment portfolio and venture capital and private equity investments. Corporate also includes certain lines of business that management has determined are no longer consistent with the long-term strategic goals of the Company as well as results for previously divested businesses.
(3)Taxable-equivalent adjustments related to tax-exempt income on certain loans and debt securities are included in net interest income, while taxable-equivalent adjustments related to income tax credits for affordable housing and renewable energy investments are included in noninterest income, in each case with corresponding impacts to income tax expense (benefit). Adjustments are included in Corporate, Commercial Banking, and Corporate and Investment Banking and are eliminated to reconcile to the Company’s consolidated financial results.
Wells Fargo & Company and Subsidiaries
COMBINED SEGMENT RESULTS (continued) (1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Six months ended June 30, 2024 |
(in millions) | Consumer Banking and Lending | | Commercial Banking | | Corporate and Investment Banking | | Wealth and Investment Management | | Corporate (2) | | Reconciling Items (3) | | Consolidated Company |
Net interest income | $ | 14,134 | | | 4,559 | | | 3,972 | | | 1,775 | | | (112) | | | (178) | | | 24,150 | |
Noninterest income | 3,963 | | | 1,715 | | | 5,848 | | | 5,825 | | | 683 | | | (632) | | | 17,402 | |
Total revenue | 18,097 | | | 6,274 | | | 9,820 | | | 7,600 | | | 571 | | | (810) | | | 41,552 | |
Provision for credit losses | 1,720 | | | 172 | | | 290 | | | (11) | | | 3 | | | — | | | 2,174 | |
Noninterest expense | 11,725 | | | 3,185 | | | 4,500 | | | 6,423 | | | 1,798 | | | — | | | 27,631 | |
Income (loss) before income tax expense (benefit) | 4,652 | | | 2,917 | | | 5,030 | | | 1,188 | | | (1,230) | | | (810) | | | 11,747 | |
Income tax expense (benefit) | 1,169 | | | 743 | | | 1,264 | | | 323 | | | (474) | | | (810) | | | 2,215 | |
Net income (loss) before noncontrolling interests | 3,483 | | | 2,174 | | | 3,766 | | | 865 | | | (756) | | | — | | | 9,532 | |
Less: Net income (loss) from noncontrolling interests | — | | | 6 | | | — | | | — | | | (3) | | | — | | | 3 | |
Net income (loss) | $ | 3,483 | | | 2,168 | | | 3,766 | | | 865 | | | (753) | | | — | | | 9,529 | |
| | | | | | | | | | | | | |
| | | | | | | | | Six months ended June 30, 2023 |
Net interest income | $ | 14,923 | | | 4,990 | | | 4,820 | | | 2,053 | | | (75) | | | (212) | | | 26,499 | |
Noninterest income | 3,896 | | | 1,686 | | | 4,713 | | | 5,276 | | | 126 | | | (934) | | | 14,763 | |
Total revenue | 18,819 | | | 6,676 | | | 9,533 | | | 7,329 | | | 51 | | | (1,146) | | | 41,262 | |
Provision for credit losses | 1,741 | | | (17) | | | 1,185 | | | 35 | | | (24) | | | — | | | 2,920 | |
Noninterest expense | 12,065 | | | 3,382 | | | 4,304 | | | 6,035 | | | 877 | | | — | | | 26,663 | |
Income (loss) before income tax expense (benefit) | 5,013 | | | 3,311 | | | 4,044 | | | 1,259 | | | (802) | | | (1,146) | | | 11,679 | |
Income tax expense (benefit) | 1,258 | | | 828 | | | 1,016 | | | 315 | | | (375) | | | (1,146) | | | 1,896 | |
Net income (loss) before noncontrolling interests | 3,755 | | | 2,483 | | | 3,028 | | | 944 | | | (427) | | | — | | | 9,783 | |
Less: Net income (loss) from noncontrolling interests | — | | | 6 | | | — | | | — | | | (152) | | | — | | | (146) | |
Net income (loss) | $ | 3,755 | | | 2,477 | | | 3,028 | | | 944 | | | (275) | | | — | | | 9,929 | |
(1)The management reporting process is based on U.S. GAAP and includes specific adjustments, such as for funds transfer pricing for asset/liability management, shared revenues and expenses, and taxable-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources, which allows management to assess performance across the operating segments. We define our operating segments by type of product and customer segment.
(2)All other business activities that are not included in the reportable operating segments have been included in Corporate. Corporate includes corporate treasury and enterprise functions, net of allocations (including funds transfer pricing, capital, liquidity and certain expenses), in support of the reportable operating segments, as well as our investment portfolio and venture capital and private equity investments. Corporate also includes certain lines of business that management has determined are no longer consistent with the long-term strategic goals of the Company as well as results for previously divested businesses.
(3)Taxable-equivalent adjustments related to tax-exempt income on certain loans and debt securities are included in net interest income, while taxable-equivalent adjustments related to income tax credits for affordable housing and renewable energy investments are included in noninterest income, in each case with corresponding impacts to income tax expense (benefit). Adjustments are included in Corporate, Commercial Banking, and Corporate and Investment Banking and are eliminated to reconcile to the Company’s consolidated financial results.
Wells Fargo & Company and Subsidiaries
CONSUMER BANKING AND LENDING SEGMENT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Income Statement | | | | | | | | | | | | | | | | | | | |
Net interest income | $ | 7,024 | | | 7,110 | | | 7,629 | | | 7,633 | | | 7,490 | | | (1) | % | | (6) | | | $ | 14,134 | | | 14,923 | | | (5) | % |
Noninterest income: | | | | | | | | | | | | | | | | | | | |
Deposit-related fees | 690 | | | 677 | | | 694 | | | 670 | | | 666 | | | 2 | | | 4 | | | 1,367 | | | 1,338 | | | 2 | |
Card fees | 1,036 | | | 990 | | | 960 | | | 1,027 | | | 1,022 | | | 5 | | | 1 | | | 2,026 | | | 1,980 | | | 2 | |
Mortgage banking | 135 | | | 193 | | | 115 | | | 105 | | | 132 | | | (30) | | | 2 | | | 328 | | | 292 | | | 12 | |
Other | 121 | | | 121 | | | 121 | | | 146 | | | 145 | | | — | | | (17) | | | 242 | | | 286 | | | (15) | |
Total noninterest income | 1,982 | | | 1,981 | | | 1,890 | | | 1,948 | | | 1,965 | | | — | | | 1 | | | 3,963 | | | 3,896 | | | 2 | |
Total revenue | 9,006 | | | 9,091 | | | 9,519 | | | 9,581 | | | 9,455 | | | (1) | | | (5) | | | 18,097 | | | 18,819 | | | (4) | |
Net charge-offs | 907 | | | 881 | | | 852 | | | 722 | | | 621 | | | 3 | | | 46 | | | 1,788 | | | 1,210 | | | 48 | |
Change in the allowance for credit losses | 25 | | | (93) | | | (62) | | | 46 | | | 253 | | | 127 | | | (90) | | | (68) | | | 531 | | | NM |
Provision for credit losses | 932 | | | 788 | | | 790 | | | 768 | | | 874 | | | 18 | | | 7 | | | 1,720 | | | 1,741 | | | (1) | |
Noninterest expense | 5,701 | | | 6,024 | | | 6,046 | | | 5,913 | | | 6,027 | | | (5) | | | (5) | | | 11,725 | | | 12,065 | | | (3) | |
Income before income tax expense | 2,373 | | | 2,279 | | | 2,683 | | | 2,900 | | | 2,554 | | | 4 | | | (7) | | | 4,652 | | | 5,013 | | | (7) | |
Income tax expense | 596 | | | 573 | | | 672 | | | 727 | | | 640 | | | 4 | | | (7) | | | 1,169 | | | 1,258 | | | (7) | |
Net income | $ | 1,777 | | | 1,706 | | | 2,011 | | | 2,173 | | | 1,914 | | | 4 | | | (7) | | | $ | 3,483 | | | 3,755 | | | (7) | |
Revenue by Line of Business | | | | | | | | | | | | | | | | | | | |
Consumer, Small and Business Banking | $ | 6,129 | | | 6,092 | | | 6,554 | | | 6,546 | | | 6,448 | | | 1 | | | (5) | | | $ | 12,221 | | | 12,822 | | | (5) | |
Consumer Lending: | | | | | | | | | | | | | | | | | | | |
Home Lending | 823 | | | 864 | | | 839 | | | 840 | | | 847 | | | (5) | | | (3) | | | 1,687 | | | 1,710 | | | (1) | |
Credit Card | 1,452 | | | 1,496 | | | 1,449 | | | 1,494 | | | 1,449 | | | (3) | | | — | | | 2,948 | | | 2,866 | | | 3 | |
Auto | 282 | | | 300 | | | 334 | | | 360 | | | 378 | | | (6) | | | (25) | | | 582 | | | 770 | | | (24) | |
Personal Lending | 320 | | | 339 | | | 343 | | | 341 | | | 333 | | | (6) | | | (4) | | | 659 | | | 651 | | | 1 | |
Total revenue | $ | 9,006 | | | 9,091 | | | 9,519 | | | 9,581 | | | 9,455 | | | (1) | | | (5) | | | $ | 18,097 | | | 18,819 | | | (4) | |
Selected Balance Sheet Data (average) | | | | | | | | | | | | | | | | | | | |
Loans by Line of Business: | | | | | | | | | | | | | | | | | | | |
Consumer, Small and Business Banking | $ | 6,370 | | | 6,465 | | | 6,494 | | | 6,610 | | | 6,831 | | | (1) | | | (7) | | | $ | 6,418 | | | 6,933 | | | (7) | |
Consumer Lending: | | | | | | | | | | | | | | | | | | | |
Home Lending | 211,994 | | | 214,335 | | | 216,733 | | | 218,546 | | | 220,641 | | | (1) | | | (4) | | | 213,164 | | | 221,596 | | | (4) | |
Credit Card | 47,463 | | | 46,412 | | | 45,842 | | | 43,541 | | | 41,609 | | | 2 | | | 14 | | | 46,937 | | | 41,066 | | | 14 | |
Auto | 45,650 | | | 47,621 | | | 49,078 | | | 51,578 | | | 52,476 | | | (4) | | | (13) | | | 46,636 | | | 53,073 | | | (12) | |
Personal Lending | 14,462 | | | 14,896 | | | 15,386 | | | 15,270 | | | 14,794 | | | (3) | | | (2) | | | 14,679 | | | 14,657 | | | — | |
Total loans | $ | 325,939 | | | 329,729 | | | 333,533 | | | 335,545 | | | 336,351 | | | (1) | | | (3) | | | $ | 327,834 | | | 337,325 | | | (3) | |
Total deposits | 778,228 | | | 773,248 | | | 779,490 | | | 801,061 | | | 823,339 | | | 1 | | | (5) | | | 775,738 | | | 832,252 | | | (7) | |
Allocated capital | 45,500 | | | 45,500 | | | 44,000 | | | 44,000 | | | 44,000 | | | — | | | 3 | | | 45,500 | | | 44,000 | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
Selected Balance Sheet Data (period-end) | | | | | | | | | | | | | | | | | | | |
Loans by Line of Business: | | | | | | | | | | | | | | | | | | | |
Consumer, Small and Business Banking | $ | 6,513 | | | 6,584 | | | 6,735 | | | 6,746 | | | 6,937 | | | (1) | | | (6) | | | | | | | |
Consumer Lending: | | | | | | | | | | | | | | | | | | | |
Home Lending | 211,172 | | | 213,289 | | | 215,823 | | | 217,955 | | | 219,595 | | | (1) | | | (4) | | | | | | | |
Credit Card | 48,400 | | | 46,867 | | | 46,735 | | | 44,409 | | | 42,415 | | | 3 | | | 14 | | | | | | | |
Auto | 44,780 | | | 46,692 | | | 48,283 | | | 50,407 | | | 52,175 | | | (4) | | | (14) | | | | | | | |
Personal Lending | 14,495 | | | 14,575 | | | 15,291 | | | 15,439 | | | 15,095 | | | (1) | | | (4) | | | | | | | |
Total loans | $ | 325,360 | | | 328,007 | | | 332,867 | | | 334,956 | | | 336,217 | | | (1) | | | (3) | | | | | | | | | |
Total deposits | 781,817 | | | 794,160 | | | 782,309 | | | 798,897 | | | 820,495 | | | (2) | | | (5) | | | | | | | |
NM – Not meaningful
Wells Fargo & Company and Subsidiaries
CONSUMER BANKING AND LENDING SEGMENT (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions, unless otherwise noted) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Selected Metrics | | | | | | | | | | | | | | | | | | | |
Consumer Banking and Lending: | | | | | | | | | | | | | | | | | | | |
Return on allocated capital (1) | 15.1 | % | | 14.5 | | | 17.6 | | | 19.1 | | | 16.9 | | | | | | | 14.8 | % | | 16.7 | | | |
Efficiency ratio (2) | 63 | | | 66 | | | 64 | | | 62 | | | 64 | | | | | | | 65 | | | 64 | | | |
| | | | | | | | | | | | | | | | | | | |
Retail bank branches (#, period-end) | 4,227 | | | 4,247 | | | 4,311 | | | 4,355 | | | 4,455 | | | — | % | | (5) | | | | | | | |
Digital active customers (# in millions, period-end) (3) | 35.6 | | | 35.5 | | | 34.8 | | | 34.6 | | | 34.2 | | | — | | | 4 | | | | | | | |
Mobile active customers (# in millions, period-end) (3) | 30.8 | | | 30.5 | | | 29.9 | | | 29.6 | | | 29.1 | | | 1 | | | 6 | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Consumer, Small and Business Banking: | | | | | | | | | | | | | | | | | | | |
Deposit spread (4) | 2.5 | % | | 2.5 | | | 2.7 | | | 2.7 | | | 2.6 | | | | | | | 2.5 | % | | 2.6 | | | |
Debit card purchase volume ($ in billions) (5) | $ | 128.2 | | | 121.5 | | 126.1 | | 124.5 | | 124.9 | | 6 | | | 3 | | | $ | 249.7 | | | 242.2 | | 3 | % |
Debit card purchase transactions (# in millions) (5) | 2,581 | | | 2,442 | | | 2,546 | | | 2,550 | | | 2,535 | | | 6 | | | 2 | | | 5,023 | | | 4,904 | | | 2 | |
| | | | | | | | | | | | | | | | | | | |
Home Lending: | | | | | | | | | | | | | | | | | | | |
Mortgage banking: | | | | | | | | | | | | | | | | | | | |
Net servicing income | $ | 89 | | | 91 | | | 113 | | | 41 | | | 62 | | | (2) | | | 44 | | | $ | 180 | | | 146 | | | 23 | |
Net gains on mortgage loan originations/sales | 46 | | | 102 | | | 2 | | | 64 | | | 70 | | | (55) | | (34) | | | 148 | | | 146 | | | 1 | |
Total mortgage banking | $ | 135 | | | 193 | | | 115 | | | 105 | | | 132 | | | (30) | | | 2 | | | $ | 328 | | | 292 | | | 12 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Retail originations ($ in billions) | $ | 5.3 | | | 3.5 | | | 4.5 | | | 6.4 | | | 7.7 | | | 51 | | | (31) | | | $ | 8.8 | | | 13.3 | | | (34) | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
% of originations held for sale (HFS) | 38.6 | % | | 43.5 | | | 45.4 | | | 40.7 | | | 45.3 | | | | | | | 40.6 | % | | 46.0 | | | |
Third party mortgage loans serviced ($ in billions, period-end) (6) | $ | 512.8 | | | 527.5 | | | 559.7 | | | 591.8 | | | 609.1 | | | (3) | | | (16) | | | | | | | |
Mortgage servicing rights (MSR) carrying value (period-end) | 7,061 | | | 7,249 | | 7,468 | | 8,457 | | 8,251 | | (3) | | | (14) | | | | | | | |
Ratio of MSR carrying value (period-end) to third party mortgage loans serviced (period-end) (6) | 1.38 | % | | 1.37 | | | 1.33 | | | 1.43 | | | 1.35 | | | | | | | | | | | |
Home lending loans 30+ days delinquency rate (period-end) (7)(8)(9) | 0.33 | | | 0.30 | | | 0.32 | | | 0.29 | | | 0.25 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Credit Card: | | | | | | | | | | | | | | | | | | | |
Point of sale (POS) volume ($ in billions) | $ | 42.9 | | | 39.1 | | 41.2 | | 39.4 | | 38.3 | | 10 | | | 12 | | | $ | 82.0 | | | 72.5 | | | 13 | |
New accounts (# in thousands) | 677 | | | 651 | | 655 | | 714 | | 618 | | 4 | | | 10 | | | 1,328 | | | 1,197 | | | 11 | |
Credit card loans 30+ days delinquency rate (period-end) (8)(9) | 2.71 | % | | 2.92 | | | 2.80 | | | 2.61 | | | 2.31 | | | | | | | | | | | |
Credit card loans 90+ days delinquency rate (period-end) (8)(9) | 1.40 | | | 1.55 | | | 1.41 | | | 1.29 | | | 1.10 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Auto: | | | | | | | | | | | | | | | | | | | |
Auto originations ($ in billions) | $ | 3.7 | | | 4.1 | | 3.3 | | 4.1 | | 4.8 | | (10) | | | (23) | | | $ | 7.8 | | | 9.8 | | | (20) | |
Auto loans 30+ days delinquency rate (period-end) (8)(9) | 2.31 | % | | 2.36 | | | 2.80 | | | 2.60 | | | 2.55 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Personal Lending: | | | | | | | | | | | | | | | | | | | |
New volume ($ in billions) | $ | 2.7 | | | 2.2 | | 2.6 | | 3.1 | | 3.3 | | 23 | | | (18) | | | $ | 4.9 | | | 6.2 | | (21) | |
(1)Return on allocated capital is segment net income (loss) applicable to common stock divided by segment average allocated capital. Segment net income (loss) applicable to common stock is segment net income (loss) less allocated preferred stock dividends.
(2)Efficiency ratio is segment noninterest expense divided by segment total revenue (net interest income and noninterest income).
(3)Digital and mobile active customers is the number of consumer and small business customers who have logged on via a digital or mobile device, respectively, in the prior 90 days. Digital active customers includes both online and mobile customers.
(4)Deposit spread is (i) the internal funds transfer pricing credit on segment deposits minus interest paid to customers for segment deposits, divided by (ii) average segment deposits.
(5)Debit card purchase volume and transactions reflect combined activity for both consumer and business debit card purchases.
(6)Excludes residential mortgage loans subserviced for others.
(7)Excludes residential mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).
(8)Excludes loans held for sale.
(9)Delinquency balances exclude nonaccrual loans.
Wells Fargo & Company and Subsidiaries
COMMERCIAL BANKING SEGMENT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Income Statement | | | | | | | | | | | | | | | | | | | |
Net interest income | $ | 2,281 | | | 2,278 | | | 2,525 | | | 2,519 | | | 2,501 | | | — | % | | (9) | | | $ | 4,559 | | | 4,990 | | | (9) | % |
Noninterest income: | | | | | | | | | | | | | | | | | | | |
Deposit-related fees | 290 | | | 284 | | | 257 | | | 257 | | | 248 | | | 2 | | | 17 | | | 574 | | | 484 | | | 19 | |
Lending-related fees | 139 | | | 138 | | | 138 | | | 133 | | | 131 | | | 1 | | | 6 | | | 277 | | | 260 | | | 7 | |
Lease income | 133 | | | 149 | | | 155 | | | 153 | | | 167 | | | (11) | | | (20) | | | 282 | | | 336 | | | (16) | |
Other | 279 | | | 303 | | | 293 | | | 343 | | | 322 | | | (8) | | | (13) | | | 582 | | | 606 | | | (4) | |
Total noninterest income | 841 | | | 874 | | | 843 | | | 886 | | | 868 | | | (4) | | | (3) | | | 1,715 | | | 1,686 | | | 2 | |
Total revenue | 3,122 | | | 3,152 | | | 3,368 | | | 3,405 | | | 3,369 | | | (1) | | | (7) | | | 6,274 | | | 6,676 | | | (6) | |
Net charge-offs | 97 | | | 75 | | | 35 | | | 37 | | | 63 | | | 29 | | | 54 | | | 172 | | | 24 | | | 617 | |
Change in the allowance for credit losses | (68) | | | 68 | | | 5 | | | 15 | | | (37) | | | NM | | (84) | | | — | | | (41) | | | 100 | |
Provision for credit losses | 29 | | | 143 | | | 40 | | | 52 | | | 26 | | | (80) | | | 12 | | | 172 | | | (17) | | | NM |
Noninterest expense | 1,506 | | | 1,679 | | | 1,630 | | | 1,543 | | | 1,630 | | | (10) | | | (8) | | | 3,185 | | | 3,382 | | | (6) | |
Income before income tax expense | 1,587 | | | 1,330 | | | 1,698 | | | 1,810 | | | 1,713 | | | 19 | | | (7) | | | 2,917 | | | 3,311 | | | (12) | |
Income tax expense | 402 | | | 341 | | | 423 | | | 453 | | | 429 | | | 18 | | | (6) | | | 743 | | | 828 | | | (10) | |
Less: Net income from noncontrolling interests | 3 | | | 3 | | | 2 | | | 3 | | | 3 | | | — | | | — | | | 6 | | | 6 | | | — | |
Net income | $ | 1,182 | | | 986 | | | 1,273 | | | 1,354 | | | 1,281 | | | 20 | | | (8) | | | $ | 2,168 | | | 2,477 | | | (12) | |
| | | | | | | | | | | | | | | | | | | |
Revenue by Line of Business | | | | | | | | | | | | | | | | | | | |
Middle Market Banking (1) | $ | 2,153 | | | 2,078 | | | 2,196 | | | 2,212 | | | 2,199 | | | 4 | | | (2) | | | $ | 4,231 | | | 4,354 | | | (3) | |
Asset-Based Lending and Leasing (1) | 969 | | | 1,074 | | | 1,172 | | | 1,193 | | | 1,170 | | | (10) | | | (17) | | | 2,043 | | | 2,322 | | | (12) | |
Total revenue | $ | 3,122 | | | 3,152 | | | 3,368 | | | 3,405 | | | 3,369 | | | (1) | | | (7) | | | $ | 6,274 | | | 6,676 | | | (6) | |
| | | | | | | | | | | | | | | | | | | |
Revenue by Product | | | | | | | | | | | | | | | | | | | |
Lending and leasing | $ | 1,308 | | | 1,309 | | | 1,337 | | | 1,321 | | | 1,332 | | | — | | | (2) | | | $ | 2,617 | | | 2,656 | | | (1) | |
Treasury management and payments | 1,412 | | | 1,421 | | | 1,527 | | | 1,541 | | | 1,584 | | | (1) | | | (11) | | | 2,833 | | | 3,146 | | | (10) | |
Other | 402 | | | 422 | | | 504 | | | 543 | | | 453 | | | (5) | | | (11) | | | 824 | | | 874 | | | (6) | |
Total revenue | $ | 3,122 | | | 3,152 | | | 3,368 | | | 3,405 | | | 3,369 | | | (1) | | | (7) | | | $ | 6,274 | | | 6,676 | | | (6) | |
| | | | | | | | | | | | | | | | | | | |
Selected Metrics | | | | | | | | | | | | | | | | | | | |
Return on allocated capital | 17.3 | % | | 14.3 | | | 19.0 | | | 20.2 | | | 19.3 | | | | | | | 15.8 | % | | 18.7 | | | |
Efficiency ratio | 48 | | | 53 | | | 48 | | | 45 | | | 48 | | | | | | | 51 | | | 51 | | | |
| | | | | | | | | | | | | | | | | | | |
NM – Not meaningful
(1)In second quarter 2024, we prospectively transferred our commercial auto business from Asset-Based Lending and Leasing to Middle Market Banking.
Wells Fargo & Company and Subsidiaries
COMMERCIAL BANKING SEGMENT (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Selected Balance Sheet Data (average) | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 164,027 | | | 163,273 | | | 162,877 | | | 164,182 | | | 165,980 | | | — | % | | (1) | | | $ | 163,650 | | | 164,603 | | | (1) | % |
Commercial real estate | 44,990 | | | 45,296 | | | 45,393 | | | 45,716 | | | 45,855 | | | (1) | | | (2) | | | 45,143 | | | 45,858 | | | (2) | |
Lease financing and other | 15,406 | | | 15,352 | | | 15,062 | | | 14,518 | | | 13,989 | | | — | | | 10 | | | 15,379 | | | 13,872 | | | 11 | |
Total loans | $ | 224,423 | | | 223,921 | | | 223,332 | | | 224,416 | | | 225,824 | | | — | | | (1) | | | $ | 224,172 | | | 224,333 | | | — | |
| | | | | | | | | | | | | | | | | | | |
Loans by Line of Business: | | | | | | | | | | | | | | | | | | | |
Middle Market Banking (1) | $ | 128,259 | | | 119,273 | | | 118,971 | | | 120,509 | | | 122,204 | | | 8 | | | 5 | | | $ | 123,766 | | | 121,916 | | | 2 | |
Asset-Based Lending and Leasing (1) | 96,164 | | | 104,648 | | | 104,361 | | | 103,907 | | | 103,620 | | | (8) | | | (7) | | | 100,406 | | | 102,417 | | | (2) | |
Total loans | $ | 224,423 | | | 223,921 | | | 223,332 | | | 224,416 | | | 225,824 | | | — | | | (1) | | | $ | 224,172 | | | 224,333 | | | — | |
| | | | | | | | | | | | | | | | | | | |
Total deposits | 166,892 | | | 164,027 | | | 163,299 | | | 160,556 | | | 166,747 | | | 2 | | | — | | | 165,460 | | | 168,597 | | | (2) | |
Allocated capital | 26,000 | | | 26,000 | | | 25,500 | | | 25,500 | | | 25,500 | | | — | | | 2 | | | 26,000 | | | 25,500 | | 2 | |
| | | | | | | | | | | | | | | | | | | |
Selected Balance Sheet Data (period-end) | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 165,878 | | | 166,842 | | | 163,797 | | | 165,094 | | | 168,492 | | | (1) | | | (2) | | | | | | | |
Commercial real estate | 44,978 | | | 45,292 | | | 45,534 | | | 45,663 | | | 45,784 | | | (1) | | | (2) | | | | | | | |
Lease financing and other | 15,617 | | | 15,526 | | | 15,443 | | | 15,014 | | | 14,435 | | | 1 | | | 8 | | | | | | | |
Total loans | $ | 226,473 | | | 227,660 | | | 224,774 | | | 225,771 | | | 228,711 | | | (1) | | | (1) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Loans by Line of Business: | | | | | | | | | | | | | | | | | | | |
Middle Market Banking (1) | $ | 129,023 | | | 120,401 | | | 118,482 | | | 119,354 | | | 122,104 | | | 7 | | | 6 | | | | | | | |
Asset-Based Lending and Leasing (1) | 97,450 | | | 107,259 | | | 106,292 | | | 106,417 | | | 106,607 | | | (9) | | | (9) | | | | | | | |
Total loans | $ | 226,473 | | | 227,660 | | | 224,774 | | | 225,771 | | | 228,711 | | | (1) | | | (1) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total deposits | 168,979 | | | 168,547 | | | 162,526 | | | 160,368 | | | 164,764 | | | — | | | 3 | | | | | | | |
(1)In second quarter 2024, we prospectively transferred our commercial auto business from Asset-Based Lending and Leasing to Middle Market Banking.
Wells Fargo & Company and Subsidiaries
CORPORATE AND INVESTMENT BANKING SEGMENT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Income Statement | | | | | | | | | | | | | | | | | | | |
Net interest income | $ | 1,945 | | | 2,027 | | | 2,359 | | | 2,319 | | | 2,359 | | | (4) | % | | (18) | | | $ | 3,972 | | | 4,820 | | | (18) | % |
Noninterest income: | | | | | | | | | | | | | | | | | | | |
Deposit-related fees | 263 | | | 262 | | | 246 | | | 247 | | | 247 | | | — | | | 6 | | | 525 | | | 483 | | | 9 | |
Lending-related fees | 205 | | | 203 | | | 199 | | | 206 | | | 191 | | | 1 | | | 7 | | | 408 | | | 385 | | | 6 | |
Investment banking fees | 634 | | | 647 | | | 489 | | | 545 | | | 390 | | | (2) | | | 63 | | | 1,281 | | | 704 | | | 82 | |
Net gains from trading activities | 1,387 | | | 1,405 | | | 1,022 | | | 1,193 | | | 1,081 | | | (1) | | | 28 | | | 2,792 | | | 2,338 | | | 19 | |
Other | 404 | | | 438 | | | 420 | | | 413 | | | 363 | | | (8) | | | 11 | | | 842 | | | 803 | | | 5 | |
Total noninterest income | 2,893 | | | 2,955 | | | 2,376 | | | 2,604 | | | 2,272 | | | (2) | | | 27 | | | 5,848 | | | 4,713 | | | 24 | |
Total revenue | 4,838 | | | 4,982 | | | 4,735 | | | 4,923 | | | 4,631 | | | (3) | | | 4 | | | 9,820 | | | 9,533 | | | 3 | |
Net charge-offs | 303 | | | 196 | | | 376 | | | 105 | | | 83 | | | 55 | | | 265 | | | 499 | | | 100 | | | 399 | |
Change in the allowance for credit losses | (18) | | | (191) | | | 122 | | | 219 | | | 850 | | | 91 | | | NM | | (209) | | | 1,085 | | | NM |
Provision for credit losses | 285 | | | 5 | | | 498 | | | 324 | | | 933 | | | NM | | (69) | | | 290 | | | 1,185 | | | (76) | |
Noninterest expense | 2,170 | | | 2,330 | | | 2,132 | | | 2,182 | | | 2,087 | | | (7) | | | 4 | | | 4,500 | | | 4,304 | | | 5 | |
Income before income tax expense | 2,383 | | | 2,647 | | | 2,105 | | | 2,417 | | | 1,611 | | | (10) | | | 48 | | | 5,030 | | | 4,044 | | | 24 | |
Income tax expense | 598 | | | 666 | | | 523 | | | 601 | | | 401 | | | (10) | | | 49 | | | 1,264 | | | 1,016 | | | 24 | |
| | | | | | | | | | | | | | | | | | | |
Net income | $ | 1,785 | | | 1,981 | | | 1,582 | | | 1,816 | | | 1,210 | | | (10) | | | 48 | | | $ | 3,766 | | | 3,028 | | | 24 | |
| | | | | | | | | | | | | | | | | | | |
Revenue by Line of Business | | | | | | | | | | | | | | | | | | | |
Banking: | | | | | | | | | | | | | | | | | | | |
Lending | $ | 688 | | | 681 | | | 774 | | | 721 | | | 685 | | | 1 | | | — | | | $ | 1,369 | | | 1,377 | | | (1) | |
Treasury Management and Payments | 687 | | | 686 | | | 742 | | | 747 | | | 762 | | | — | | | (10) | | | 1,373 | | | 1,547 | | | (11) | |
Investment Banking | 430 | | | 474 | | | 383 | | | 430 | | | 311 | | | (9) | | | 38 | | | 904 | | | 591 | | | 53 | |
Total Banking | 1,805 | | | 1,841 | | | 1,899 | | | 1,898 | | | 1,758 | | | (2) | | | 3 | | | 3,646 | | | 3,515 | | | 4 | |
Commercial Real Estate | 1,283 | | | 1,223 | | | 1,291 | | | 1,376 | | | 1,333 | | | 5 | | | (4) | | | 2,506 | | | 2,644 | | | (5) | |
Markets: | | | | | | | | | | | | | | | | | | | |
Fixed Income, Currencies, and Commodities (FICC) | 1,228 | | | 1,359 | | | 1,122 | | | 1,148 | | | 1,133 | | | (10) | | | 8 | | | 2,587 | | | 2,418 | | | 7 | |
Equities | 558 | | | 450 | | | 457 | | | 518 | | | 397 | | | 24 | | | 41 | | | 1,008 | | | 834 | | | 21 | |
Credit Adjustment (CVA/DVA) and Other | 7 | | | 19 | | | (8) | | | (12) | | | 14 | | | (63) | | | (50) | | | 26 | | | 85 | | | (69) | |
Total Markets | 1,793 | | | 1,828 | | | 1,571 | | | 1,654 | | | 1,544 | | | (2) | | | 16 | | | 3,621 | | | 3,337 | | | 9 | |
Other | (43) | | | 90 | | | (26) | | | (5) | | | (4) | | | NM | | NM | | 47 | | | 37 | | | 27 | |
Total revenue | $ | 4,838 | | | 4,982 | | | 4,735 | | | 4,923 | | | 4,631 | | | (3) | | | 4 | | | $ | 9,820 | | | 9,533 | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
Selected Metrics | | | | | | | | | | | | | | | | | | | |
Return on allocated capital | 15.4 | % | | 17.2 | | | 13.4 | | | 15.5 | | | 10.2 | | | | | | | 16.3 | % | | 13.0 | | | |
Efficiency ratio | 45 | | | 47 | | | 45 | | | 44 | | | 45 | | | | | | | 46 | | | 45 | | | |
| | | | | | | | | | | | | | | | | | | |
NM – Not meaningful
Wells Fargo & Company and Subsidiaries
CORPORATE AND INVESTMENT BANKING SEGMENT (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Selected Balance Sheet Data (average) | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 180,789 | | | 185,432 | | | 191,014 | | | 191,128 | | | 190,529 | | | (3) | % | | (5) | | | $ | 183,110 | | | 192,141 | | | (5) | % |
Commercial real estate | 94,998 | | | 97,811 | | | 99,077 | | | 100,523 | | | 100,941 | | | (3) | | | (6) | | | 96,405 | | | 100,956 | | | (5) | |
Total loans | $ | 275,787 | | | 283,243 | | | 290,091 | | | 291,651 | | | 291,470 | | | (3) | | | (5) | | | $ | 279,515 | | | 293,097 | | | (5) | |
| | | | | | | | | | | | | | | | | | | |
Loans by Line of Business: | | | | | | | | | | | | | | | | | | | |
Banking | $ | 86,130 | | | 90,897 | | | 94,699 | | | 94,010 | | | 95,413 | | | (5) | | | (10) | | | $ | 88,513 | | | 97,235 | | | (9) | |
Commercial Real Estate | 128,107 | | | 131,709 | | | 133,921 | | | 135,639 | | | 136,473 | | | (3) | | | (6) | | | 129,908 | | | 136,639 | | | (5) | |
Markets | 61,550 | | | 60,637 | | | 61,471 | | | 62,002 | | | 59,584 | | | 2 | | | 3 | | | 61,094 | | | 59,223 | | | 3 | |
Total loans | $ | 275,787 | | | 283,243 | | | 290,091 | | | 291,651 | | | 291,470 | | | (3) | | | (5) | | | $ | 279,515 | | | 293,097 | | | (5) | |
Trading-related assets: | | | | | | | | | | | | | | | | | | | |
Trading account securities | $ | 136,101 | | | 121,347 | | | 118,938 | | | 122,376 | | | 118,462 | | | 12 | | | 15 | | | $ | 128,724 | | | 115,561 | | | 11 | |
Reverse repurchase agreements/securities borrowed | 64,896 | | | 62,856 | | | 65,678 | | | 62,284 | | | 60,164 | | | 3 | | | 8 | | | 63,876 | | | 58,997 | | | 8 | |
Derivative assets | 18,552 | | | 17,033 | | | 19,308 | | | 19,760 | | | 17,522 | | | 9 | | | 6 | | | 17,793 | | | 17,724 | | | — | |
Total trading-related assets | $ | 219,549 | | | 201,236 | | | 203,924 | | | 204,420 | | | 196,148 | | | 9 | | | 12 | | | $ | 210,393 | | | 192,282 | | | 9 | |
Total assets | 558,063 | | | 550,933 | | | 556,196 | | | 559,647 | | | 550,091 | | | 1 | | | 1 | | | 554,498 | | | 549,453 | | | 1 | |
Total deposits | 187,545 | | | 183,273 | | | 173,117 | | | 157,212 | | | 160,251 | | | 2 | | | 17 | | | 185,408 | | | 158,908 | | | 17 | |
Allocated capital | 44,000 | | | 44,000 | | | 44,000 | | | 44,000 | | | 44,000 | | | — | | | — | | | 44,000 | | | 44,000 | | | — | |
| | | | | | | | | | | | | | | | | | | |
Selected Balance Sheet Data (period-end) | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 181,441 | | | 178,986 | | | 189,379 | | | 190,547 | | | 190,317 | | | 1 | | | (5) | | | | | | | |
Commercial real estate | 93,889 | | | 96,611 | | | 98,053 | | | 99,783 | | | 101,028 | | | (3) | | | (7) | | | | | | | |
Total loans | $ | 275,330 | | | 275,597 | | | 287,432 | | | 290,330 | | | 291,345 | | | — | | | (5) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Loans by Line of Business: | | | | | | | | | | | | | | | | | | | |
Banking | $ | 84,054 | | | 86,066 | | | 93,987 | | | 93,723 | | | 93,596 | | | (2) | | | (10) | | | | | | | |
Commercial Real Estate | 126,080 | | | 129,627 | | | 131,968 | | | 133,939 | | | 136,257 | | | (3) | | | (7) | | | | | | | |
Markets | 65,196 | | | 59,904 | | | 61,477 | | | 62,668 | | | 61,492 | | | 9 | | | 6 | | | | | | | |
Total loans | $ | 275,330 | | | 275,597 | | | 287,432 | | | 290,330 | | | 291,345 | | | — | | | (5) | | | | | | | | | |
Trading-related assets: | | | | | | | | | | | | | | | | | | | |
Trading account securities | $ | 140,928 | | | 133,079 | | | 115,562 | | | 120,547 | | | 130,008 | | | 6 | | | 8 | | | | | | | |
Reverse repurchase agreements/securities borrowed | 70,615 | | | 62,019 | | | 63,614 | | | 64,240 | | | 59,020 | | | 14 | | | 20 | | | | | | | |
Derivative assets | 19,186 | | | 17,726 | | | 18,023 | | | 21,231 | | | 17,804 | | | 8 | | | 8 | | | | | | | |
Total trading-related assets | $ | 230,729 | | | 212,824 | | | 197,199 | | | 206,018 | | | 206,832 | | | 8 | | | 12 | | | | | | | | | |
Total assets | 565,334 | | | 553,105 | | | 547,203 | | | 557,642 | | | 559,520 | | | 2 | | | 1 | | | | | | | |
Total deposits | 200,920 | | | 195,969 | | | 185,142 | | | 162,776 | | | 158,770 | | | 3 | | | 27 | | | | | | | |
Wells Fargo & Company and Subsidiaries
WEALTH AND INVESTMENT MANAGEMENT SEGMENT
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions, unless otherwise noted) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Income Statement | | | | | | | | | | | | | | | | | | | |
Net interest income | $ | 906 | | | 869 | | | 906 | | | 1,007 | | | 1,009 | | | 4 | % | | (10) | | | $ | 1,775 | | | 2,053 | | | (14) | % |
Noninterest income: | | | | | | | | | | | | | | | | | | | |
Investment advisory and other asset-based fees | 2,357 | | | 2,267 | | | 2,111 | | | 2,164 | | | 2,110 | | | 4 | | | 12 | | | 4,624 | | | 4,171 | | | 11 | |
Commissions and brokerage services fees | 521 | | | 545 | | | 531 | | | 492 | | | 494 | | | (4) | | | 5 | | | 1,066 | | | 1,035 | | | 3 | |
Other | 74 | | | 61 | | | 112 | | | 39 | | | 35 | | | 21 | | | 111 | | | 135 | | | 70 | | | 93 | |
Total noninterest income | 2,952 | | | 2,873 | | | 2,754 | | | 2,695 | | | 2,639 | | | 3 | | | 12 | | | 5,825 | | | 5,276 | | | 10 | |
Total revenue | 3,858 | | | 3,742 | | | 3,660 | | | 3,702 | | | 3,648 | | | 3 | | | 6 | | | 7,600 | | | 7,329 | | | 4 | |
Net charge-offs | (2) | | | 6 | | | — | | | 1 | | | (1) | | | NM | | (100) | | | 4 | | | (2) | | | 300 | |
Change in the allowance for credit losses | (12) | | | (3) | | | (19) | | | (11) | | | 25 | | | NM | | NM | | (15) | | | 37 | | | NM |
Provision for credit losses | (14) | | | 3 | | | (19) | | | (10) | | | 24 | | | NM | | NM | | (11) | | | 35 | | | NM |
Noninterest expense | 3,193 | | | 3,230 | | | 3,023 | | | 3,006 | | | 2,974 | | | (1) | | | 7 | | | 6,423 | | | 6,035 | | | 6 | |
Income before income tax expense | 679 | | | 509 | | | 656 | | | 706 | | | 650 | | | 33 | | | 4 | | | 1,188 | | | 1,259 | | | (6) | |
Income tax expense | 195 | | | 128 | | | 165 | | | 177 | | | 163 | | | 52 | | | 20 | | | 323 | | | 315 | | | 3 | |
| | | | | | | | | | | | | | | | | | | |
Net income | $ | 484 | | | 381 | | | 491 | | | 529 | | | 487 | | | 27 | | | (1) | | | $ | 865 | | | 944 | | | (8) | |
| | | | | | | | | | | | | | | | | | | |
Selected Metrics | | | | | | | | | | | | | | | | | | | |
Return on allocated capital | 29.0 | % | | 22.7 | | | 30.4 | | | 32.8 | | | 30.5 | | | | | | | 25.8 | % | | 29.7 | | | (13) | |
Efficiency ratio | 83 | | | 86 | | | 83 | | | 81 | | | 82 | | | | | | | 85 | | | 82 | | | 4 | |
| | | | | | | | | | | | | | | | | | | |
Client assets ($ in billions, period-end): | | | | | | | | | | | | | | | | | | | |
Advisory assets | $ | 945 | | | 939 | | 891 | | 825 | | 850 | | 1 | | | 11 | | | | | | | |
Other brokerage assets and deposits | 1,255 | | | 1,247 | | 1,193 | | 1,123 | | 1,148 | | 1 | | | 9 | | | | | | | |
Total client assets | $ | 2,200 | | | 2,186 | | 2,084 | | 1,948 | | 1,998 | | 1 | | | 10 | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Selected Balance Sheet Data (average) | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 83,166 | | | 82,483 | | | 82,181 | | | 82,195 | | | 83,045 | | | 1 | | | — | | | $ | 82,824 | | | 83,331 | | | (1) | |
Total deposits | 102,843 | | | 101,474 | | | 102,130 | | | 107,500 | | | 112,360 | | | 1 | | | (8) | | | 102,158 | | | 119,443 | | | (14) | |
Allocated capital | 6,500 | | | 6,500 | | | 6,250 | | | 6,250 | | | 6,250 | | | — | | | 4 | | | 6,500 | | | 6,250 | | | 4 | |
| | | | | | | | | | | | | | | | | | | |
Selected Balance Sheet Data (period-end) | | | | | | | | | | | | | | | | | | | |
Total loans | $ | 83,338 | | | 82,999 | | | 82,555 | | | 82,331 | | | 82,456 | | | — | | | 1 | | | | | | | |
Total deposits | 103,722 | | | 102,478 | | | 103,902 | | | 103,255 | | | 108,532 | | | 1 | | | (4) | | | | | | | |
NM – Not meaningful
Wells Fargo & Company and Subsidiaries
CORPORATE (1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | | Jun 30, 2023 | | % Change |
Income Statement | | | | | | | | | | | | | | | | | | | |
Net interest income | $ | (144) | | | 32 | | | (544) | | | (269) | | | (91) | | | NM | | (58) | | | $ | (112) | | | (75) | | | (49) | % |
Noninterest income | 392 | | | 291 | | | 284 | | | 21 | | | 121 | | | 35 | % | | 224 | | | 683 | | | 126 | | | 442 | |
Total revenue | 248 | | | 323 | | | (260) | | | (248) | | | 30 | | | (23) | | | 727 | | | 571 | | | 51 | | | NM |
Net charge-offs | (2) | | | (1) | | | (5) | | | (1) | | | (2) | | | (100) | | | — | | | (3) | | | (4) | | | 25 | |
Change in the allowance for credit losses | 6 | | | — | | | (22) | | | 64 | | | (142) | | | NM | | 104 | | | 6 | | | (20) | | | 130 | |
Provision for credit losses | 4 | | | (1) | | | (27) | | | 63 | | | (144) | | | 500 | | | 103 | | | 3 | | | (24) | | | 113 | |
Noninterest expense | 723 | | | 1,075 | | | 2,955 | | | 469 | | | 269 | | | (33) | | | 169 | | | 1,798 | | | 877 | | | 105 | |
Loss before income tax benefit | (479) | | | (751) | | | (3,188) | | | (780) | | | (95) | | | 36 | | | NM | | (1,230) | | | (802) | | | (53) | |
Income tax benefit | (157) | | | (317) | | | (1,339) | | | (641) | | | (103) | | | 50 | | | (52) | | | (474) | | | (375) | | | (26) | |
Less: Net income (loss) from noncontrolling interests | (4) | | | 1 | | | 62 | | | (34) | | | (38) | | | NM | | 89 | | | (3) | | | (152) | | | 98 | |
Net income (loss) | $ | (318) | | | (435) | | | (1,911) | | | (105) | | | 46 | | | 27 | | | NM | | $ | (753) | | | (275) | | | NM |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Selected Balance Sheet Data (average) | | | | | | | | | | | | | | | | | | | |
Cash and due from banks, and interest-earning deposits with banks | $ | 202,812 | | | 211,612 | | | 198,315 | | | 164,900 | | | 132,505 | | | (4) | | | 53 | | | $ | 207,212 | | | 125,004 | | | 66 | |
Available-for-sale debt securities | 131,822 | | | 122,794 | | | 115,346 | | | 119,745 | | | 130,496 | | | 7 | | | 1 | | | 127,308 | | | 129,638 | | | (2) | |
Held-to-maturity debt securities | 251,100 | | | 257,088 | | | 261,103 | | | 266,012 | | | 270,999 | | | (2) | | | (7) | | | 254,094 | | | 271,854 | | | (7) | |
Equity securities | 15,571 | | | 15,958 | | | 15,906 | | | 15,784 | | | 15,327 | | | (2) | | | 2 | | | 15,765 | | | 15,422 | | | 2 | |
Total loans | 7,662 | | | 8,699 | | | 8,904 | | | 9,386 | | | 9,216 | | | (12) | | | (17) | | | 8,181 | | | 9,185 | | | (11) | |
Total assets | 656,535 | | | 663,483 | | | 645,573 | | | 623,339 | | | 610,417 | | | (1) | | | 8 | | | 660,009 | | | 603,293 | | | 9 | |
Total deposits | 110,970 | | | 119,606 | | | 122,880 | | | 113,978 | | | 84,752 | | | (7) | | | 31 | | | 115,288 | | | 72,846 | | | 58 | |
| | | | | | | | | | | | | | | | | | | |
Selected Balance Sheet Data (period-end) | | | | | | | | | | | | | | | | | | | |
Cash and due from banks, and interest-earning deposits with banks | $ | 211,050 | | | 246,057 | | | 211,420 | | | 194,653 | | | 128,077 | | | (14) | | | 65 | | | | | | | |
Available-for-sale debt securities | 138,087 | | | 127,084 | | | 118,923 | | | 115,005 | | | 123,169 | | | 9 | | | 12 | | | | | | | |
Held-to-maturity debt securities | 247,746 | | | 255,761 | | | 259,748 | | | 264,248 | | | 269,414 | | | (3) | | | (8) | | | | | | | |
Equity securities | 15,297 | | | 15,798 | | | 15,810 | | | 15,496 | | | 15,097 | | | (3) | | | 1 | | | | | | | |
Total loans | 7,406 | | | 8,521 | | | 9,054 | | | 9,036 | | | 9,231 | | | (13) | | | (20) | | | | | | | |
Total assets | 670,494 | | | 699,401 | | | 674,075 | | | 641,455 | | | 593,597 | | | (4) | | | 13 | | | | | | | |
Total deposits | 110,456 | | | 121,993 | | | 124,294 | | | 128,714 | | | 92,023 | | | (9) | | | 20 | | | | | | | |
NM – Not meaningful
(1)All other business activities that are not included in the reportable operating segments have been included in Corporate. Corporate includes corporate treasury and enterprise functions, net of allocations (including funds transfer pricing, capital, liquidity and certain expenses), in support of the reportable operating segments, as well as our investment portfolio and venture capital and private equity investments. Corporate also includes certain lines of business that management has determined are no longer consistent with the long-term strategic goals of the Company as well as results for previously divested businesses.
Wells Fargo & Company and Subsidiaries
CONSOLIDATED LOANS OUTSTANDING – PERIOD-END BALANCES, AVERAGE BALANCES, AND AVERAGE INTEREST RATES
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 $ Change from |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 |
Period-End Loans | | | | | | | | | | | | | |
Commercial and industrial | $ | 374,588 | | | 372,963 | | | 380,388 | | | 382,527 | | | 386,011 | | | 1,625 | | | (11,423) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Commercial real estate | 145,318 | | | 148,786 | | | 150,616 | | | 152,486 | | | 154,276 | | | (3,468) | | | (8,958) | |
Lease financing | 16,705 | | | 16,579 | | | 16,423 | | | 16,038 | | | 15,334 | | | 126 | | | 1,371 | |
Total commercial | 536,611 | | | 538,328 | | | 547,427 | | | 551,051 | | | 555,621 | | | (1,717) | | | (19,010) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Residential mortgage | 255,085 | | | 257,622 | | | 260,724 | | | 263,174 | | | 265,085 | | | (2,537) | | | (10,000) | |
Credit card | 53,756 | | | 52,035 | | | 52,230 | | | 49,851 | | | 47,717 | | | 1,721 | | | 6,039 | |
Auto | 44,280 | | | 46,202 | | | 47,762 | | | 49,865 | | | 51,587 | | | (1,922) | | | (7,307) | |
Other consumer | 28,175 | | | 28,597 | | | 28,539 | | | 28,483 | | | 27,950 | | | (422) | | | 225 | |
Total consumer | 381,296 | | | 384,456 | | | 389,255 | | | 391,373 | | | 392,339 | | | (3,160) | | | (11,043) | |
Total loans | $ | 917,907 | | | 922,784 | | | 936,682 | | | 942,424 | | | 947,960 | | | (4,877) | | | (30,053) | |
| | | | | | | | | | | | | |
Average Loans | | | | | | | | | | | | | |
Commercial and industrial | $ | 371,514 | | | 375,593 | | | 380,566 | | | 382,277 | | | 383,361 | | | (4,079) | | | (11,847) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Commercial real estate | 146,750 | | | 150,083 | | | 151,665 | | | 153,686 | | | 154,660 | | | (3,333) | | | (7,910) | |
Lease financing | 16,519 | | | 16,363 | | | 16,123 | | | 15,564 | | | 15,010 | | | 156 | | | 1,509 | |
Total commercial | 534,783 | | | 542,039 | | | 548,354 | | | 551,527 | | | 553,031 | | | (7,256) | | | (18,248) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Residential mortgage | 256,189 | | | 259,053 | | | 261,776 | | | 263,918 | | | 266,128 | | | (2,864) | | | (9,939) | |
Credit card | 52,642 | | | 51,708 | | | 51,249 | | | 48,889 | | | 46,762 | | | 934 | | | 5,880 | |
Auto | 45,164 | | | 47,114 | | | 48,554 | | | 51,014 | | | 51,880 | | | (1,950) | | | (6,716) | |
Other consumer | 28,199 | | | 28,161 | | | 28,108 | | | 27,845 | | | 28,105 | | | 38 | | | 94 | |
Total consumer | 382,194 | | | 386,036 | | | 389,687 | | | 391,666 | | | 392,875 | | | (3,842) | | | (10,681) | |
Total loans | $ | 916,977 | | | 928,075 | | | 938,041 | | | 943,193 | | | 945,906 | | | (11,098) | | | (28,929) | |
| | | | | | | | | | | | | |
Average Interest Rates | | | | | | | | | | | | | |
Commercial and industrial | 7.22 | % | | 7.18 | | | 7.20 | | | 7.03 | | | 6.70 | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Commercial real estate | 6.93 | | | 6.94 | | | 6.88 | | | 6.83 | | | 6.59 | | | | | |
Lease financing | 5.47 | | | 5.34 | | | 5.17 | | | 4.90 | | | 4.76 | | | | | |
Total commercial | 7.08 | | | 7.06 | | | 7.05 | | | 6.92 | | | 6.62 | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Residential mortgage | 3.65 | | | 3.61 | | | 3.60 | | | 3.55 | | | 3.48 | | | | | |
Credit card | 12.75 | | | 13.14 | | | 13.03 | | | 13.08 | | | 12.96 | | | | | |
Auto | 5.09 | | | 4.98 | | | 4.90 | | | 4.78 | | | 4.67 | | | | | |
Other consumer | 8.56 | | | 8.62 | | | 8.68 | | | 8.65 | | | 8.29 | | | | | |
Total consumer | 5.43 | | | 5.42 | | | 5.37 | | | 5.26 | | | 5.11 | | | | | |
Total loans | 6.40 | | | 6.38 | | | 6.35 | | | 6.23 | | | 5.99 | | | | | |
Wells Fargo & Company and Subsidiaries
NET LOAN CHARGE-OFFS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | | | | | |
| Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Jun 30, 2024 $ Change from | | | |
($ in millions) | Net loan charge-offs | | As a % of average loans (1) | | Net loan charge-offs | | As a % of average loans (1) | | Net loan charge-offs | | As a % of average loans (1) | | Net loan charge-offs | | As a % of average loans (1) | | Net loan charge-offs | | As a % of average loans (1) | | Mar 31, 2024 | | Jun 30, 2023 | | | | | |
By product: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 188 | | | 0.20 | % | | $ | 148 | | | 0.16 | % | | $ | 90 | | | 0.09 | % | | $ | 93 | | | 0.10 | % | | $ | 119 | | | 0.12 | % | | $ | 40 | | | 69 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | 271 | | | 0.74 | | | 187 | | | 0.50 | | | 377 | | | 0.99 | | | 93 | | | 0.24 | | | 79 | | | 0.21 | | | 84 | | | 192 | | | | | | | |
Lease financing | 9 | | | 0.21 | | | 6 | | | 0.13 | | | 5 | | | 0.14 | | | 2 | | | 0.07 | | | 2 | | | 0.05 | | | 3 | | | 7 | | | | | | | |
Total commercial | 468 | | | 0.35 | | | 341 | | | 0.25 | | | 472 | | | 0.34 | | | 188 | | | 0.13 | | | 200 | | | 0.15 | | | 127 | | | 268 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | (19) | | | (0.03) | | | (13) | | | (0.02) | | | 3 | | | — | | | (4) | | | (0.01) | | | (12) | | | (0.02) | | | (6) | | | (7) | | | | | | | |
Credit card | 649 | | | 4.96 | | | 577 | | | 4.48 | | | 520 | | | 4.02 | | | 420 | | | 3.41 | | | 396 | | | 3.39 | | | 72 | | | 253 | | | | | | | |
Auto | 79 | | | 0.70 | | | 112 | | | 0.96 | | | 130 | | | 1.06 | | | 138 | | | 1.07 | | | 89 | | | 0.68 | | | (33) | | | (10) | | | | | | | |
Other consumer | 124 | | | 1.77 | | | 132 | | | 1.88 | | | 127 | | | 1.79 | | | 108 | | | 1.55 | | | 91 | | | 1.31 | | | (8) | | | 33 | | | | | | | |
Total consumer | 833 | | | 0.88 | | | 808 | | | 0.84 | | | 780 | | | 0.79 | | | 662 | | | 0.67 | | | 564 | | | 0.58 | | | 25 | | | 269 | | | | | | | |
Total net loan charge-offs | $ | 1,301 | | | 0.57 | % | | $ | 1,149 | | | 0.50 | % | | $ | 1,252 | | | 0.53 | % | | $ | 850 | | | 0.36 | % | | $ | 764 | | | 0.32 | % | | $ | 152 | | | 537 | | | | | | | |
By segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer Banking and Lending | $ | 907 | | | 1.12 | % | | $ | 881 | | | 1.07 | % | | $ | 852 | | | 1.01 | % | | $ | 722 | | | 0.85 | % | | $ | 621 | | | 0.74 | % | | $ | 26 | | | 286 | | | | | | | |
Commercial Banking | 94 | | | 0.17 | | | 75 | | | 0.13 | | | 35 | | | 0.06 | | | 29 | | | 0.05 | | | 63 | | | 0.11 | | | 19 | | | 31 | | | | | | | |
Corporate and Investing Banking | 303 | | | 0.44 | | | 188 | | | 0.27 | | | 370 | | | 0.51 | | | 99 | | | 0.13 | | | 83 | | | 0.11 | | | 115 | | | 220 | | | | | | | |
Wealth and Investment Management | (2) | | | (0.01) | | | 6 | | | 0.03 | | | — | | | — | | | 1 | | | — | | | (1) | | | — | | | (8) | | | (1) | | | | | | | |
Corporate | (1) | | | (0.05) | | | (1) | | | (0.05) | | | (5) | | | (0.22) | | | (1) | | | (0.04) | | | (2) | | | (0.09) | | | — | | | 1 | | | | | | | |
Total net loan charge-offs | $ | 1,301 | | | 0.57 | % | | $ | 1,149 | | | 0.50 | % | | $ | 1,252 | | | 0.53 | % | | $ | 850 | | | 0.36 | % | | $ | 764 | | | 0.32 | % | | $ | 152 | | | 537 | | | | | | | |
(1)Quarterly net loan charge-offs (recoveries) as a percentage of average loans are annualized.
Wells Fargo & Company and Subsidiaries
CHANGES IN ALLOWANCE FOR CREDIT LOSSES FOR LOANS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Quarter ended | | Jun 30, 2024 $ Change from | | | | |
($ in millions) | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Balance, beginning of period | 14,862 | | | 15,088 | | | 15,064 | | | 14,786 | | | 13,705 | | | (226) | | | 1,157 | | | | | | | |
Provision for credit losses for loans | 1,229 | | | 926 | | | 1,274 | | | 1,143 | | | 1,839 | | | 303 | | | (610) | | | | | | | |
Net loan charge-offs: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | (188) | | | (148) | | | (90) | | | (93) | | | (119) | | | (40) | | | (69) | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial real estate | (271) | | | (187) | | | (377) | | | (93) | | | (79) | | | (84) | | | (192) | | | | | | | |
Lease financing | (9) | | | (6) | | | (5) | | | (2) | | | (2) | | | (3) | | | (7) | | | | | | | |
Total commercial | (468) | | | (341) | | | (472) | | | (188) | | | (200) | | | (127) | | | (268) | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Residential mortgage | 19 | | | 13 | | | (3) | | | 4 | | | 12 | | | 6 | | | 7 | | | | | | | |
Credit card | (649) | | | (577) | | | (520) | | | (420) | | | (396) | | | (72) | | | (253) | | | | | | | |
Auto | (79) | | | (112) | | | (130) | | | (138) | | | (89) | | | 33 | | | 10 | | | | | | | |
Other consumer | (124) | | | (132) | | | (127) | | | (108) | | | (91) | | | 8 | | | (33) | | | | | | | |
Total consumer | (833) | | | (808) | | | (780) | | | (662) | | | (564) | | | (25) | | | (269) | | | | | | | |
Net loan charge-offs | (1,301) | | | (1,149) | | | (1,252) | | | (850) | | | (764) | | | (152) | | | (537) | | | | | | | |
Other | (1) | | | (3) | | | 2 | | | (15) | | | 6 | | | 2 | | | (7) | | | | | | | |
Balance, end of period | $ | 14,789 | | | 14,862 | | | 15,088 | | | 15,064 | | | 14,786 | | | (73) | | | 3 | | | | | | | |
Components: | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | $ | 14,360 | | | 14,421 | | | 14,606 | | | 14,554 | | | 14,258 | | | (61) | | | 102 | | | | | | | |
Allowance for unfunded credit commitments | 429 | | | 441 | | | 482 | | | 510 | | | 528 | | | (12) | | | (99) | | | | | | | |
Allowance for credit losses for loans | $ | 14,789 | | | 14,862 | | | 15,088 | | | 15,064 | | | 14,786 | | | (73) | | | 3 | | | | | | | |
Ratio of allowance for loan losses to total net loan charge-offs (annualized) | 2.74x | | 3.12 | | 2.94 | | 4.32 | | 4.65 | | | | | | | | | | |
Allowance for loan losses as a percentage of: | | | | | | | | | | | | | | | | | | | |
Total loans | 1.56 | % | | 1.56 | | | 1.56 | | | 1.54 | | | 1.50 | | | | | | | | | | | |
Nonaccrual loans | 170 | | | 179 | | | 177 | | | 182 | | | 207 | | | | | | | | | | | |
Allowance for credit losses for loans as a percentage of: | | | | | | | | | | | | | | | | | | | |
Total loans | 1.61 | | | 1.61 | | | 1.61 | | | 1.60 | | | 1.56 | | | | | | | | | | | |
Nonaccrual loans | 175 | | | 184 | | | 183 | | | 188 | | | 215 | | | | | | | | | | | |
Wells Fargo & Company and Subsidiaries
ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES FOR LOANS
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 |
($ in millions) | ACL | | ACL as % of loan class | | ACL | | ACL as % of loan class | | ACL | | ACL as % of loan class | | ACL | | ACL as % of loan class | | ACL | | ACL as % of loan class |
By product: | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 4,276 | | | 1.14 | % | | $ | 4,332 | | | 1.16 | % | | $ | 4,272 | | | 1.12 | % | | $ | 4,269 | | | 1.12 | % | | $ | 4,266 | | | 1.11 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial real estate | 3,754 | | | 2.58 | | | 3,782 | | | 2.54 | | | 3,939 | | | 2.62 | | | 3,842 | | | 2.52 | | | 3,618 | | | 2.35 | |
Lease financing | 206 | | | 1.23 | | | 203 | | | 1.22 | | | 201 | | | 1.22 | | | 199 | | | 1.24 | | | 197 | | | 1.28 | |
Total commercial | 8,236 | | | 1.53 | | | 8,317 | | | 1.54 | | | 8,412 | | | 1.54 | | | 8,310 | | | 1.51 | | | 8,081 | | | 1.45 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Residential mortgage (1) | 521 | | | 0.20 | | | 596 | | | 0.23 | | | 652 | | | 0.25 | | | 718 | | | 0.27 | | | 734 | | | 0.28 | |
Credit card | 4,517 | | | 8.40 | | | 4,321 | | | 8.30 | | | 4,223 | | | 8.09 | | | 4,021 | | | 8.07 | | | 3,865 | | | 8.10 | |
Auto | 804 | | | 1.82 | | | 894 | | | 1.93 | | | 1,042 | | | 2.18 | | | 1,264 | | | 2.53 | | | 1,408 | | | 2.73 | |
Other consumer | 711 | | | 2.52 | | | 734 | | | 2.57 | | | 759 | | | 2.66 | | | 751 | | | 2.64 | | | 698 | | | 2.50 | |
Total consumer | 6,553 | | | 1.72 | | | 6,545 | | | 1.70 | | | 6,676 | | | 1.72 | | | 6,754 | | | 1.73 | | | 6,705 | | | 1.71 | |
Total allowance for credit losses for loans | $ | 14,789 | | | 1.61 | % | | $ | 14,862 | | | 1.61 | % | | $ | 15,088 | | | 1.61 | % | | $ | 15,064 | | | 1.60 | % | | $ | 14,786 | | | 1.56 | % |
By segment: | | | | | | | | | | | | | | | | | | | |
Consumer Banking and Lending | $ | 7,386 | | | 2.27 | % | | $ | 7,361 | | | 2.24 | % | | $ | 7,453 | | | 2.24 | % | | $ | 7,515 | | | 2.24 | % | | $ | 7,469 | | | 2.22 | % |
Commercial Banking | 2,408 | | | 1.06 | | | 2,472 | | | 1.09 | | | 2,406 | | | 1.07 | | | 2,401 | | | 1.06 | | | 2,379 | | | 1.04 | |
Corporate and Investing Banking | 4,738 | | | 1.72 | | | 4,758 | | | 1.73 | | | 4,955 | | | 1.72 | | | 4,840 | | | 1.67 | | | 4,634 | | | 1.59 | |
Wealth and Investment Management | 245 | | | 0.29 | | | 258 | | | 0.31 | | | 260 | | | 0.31 | | | 279 | | | 0.34 | | | 290 | | | 0.35 | |
Corporate | 12 | | | 0.16 | | | 13 | | | 0.15 | | | 14 | | | 0.15 | | | 29 | | | 0.32 | | | 14 | | | 0.15 | |
Total allowance for credit losses for loans | $ | 14,789 | | | 1.61 | % | | $ | 14,862 | | | 1.61 | % | | $ | 15,088 | | | 1.61 | % | | $ | 15,064 | | | 1.60 | % | | $ | 14,786 | | | 1.56 | % |
(1)Includes negative allowance for expected recoveries of amounts previously charged off.
Wells Fargo & Company and Subsidiaries
NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Jun 30, 2024 $ Change from |
($ in millions) | Balance | | % of total loans | | Balance | | % of total loans | | Balance | | % of total loans | | Balance | | % of total loans | | Balance | | % of total loans | | Mar 31, 2024 | | Jun 30, 2023 |
By product: | | | | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans: | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 754 | | | 0.20 | % | | $ | 750 | | | 0.20 | % | | $ | 662 | | | 0.17 | % | | $ | 638 | | | 0.17 | % | | $ | 845 | | | 0.22 | % | | $ | 4 | | | (91) | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | 4,321 | | | 2.97 | | | 3,913 | | | 2.63 | | | 4,188 | | | 2.78 | | | 3,863 | | | 2.53 | | | 2,507 | | | 1.63 | | | 408 | | | 1,814 | |
Lease financing | 86 | | | 0.51 | | | 76 | | | 0.46 | | | 64 | | | 0.39 | | | 85 | | | 0.53 | | | 77 | | | 0.50 | | | 10 | | | 9 | |
Total commercial | 5,161 | | | 0.96 | | | 4,739 | | | 0.88 | | | 4,914 | | | 0.90 | | | 4,586 | | | 0.83 | | | 3,429 | | | 0.62 | | | 422 | | | 1,732 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage (1) | 3,135 | | | 1.23 | | | 3,193 | | | 1.24 | | | 3,192 | | | 1.22 | | | 3,258 | | | 1.24 | | | 3,289 | | | 1.24 | | | (58) | | | (154) | |
Auto | 103 | | | 0.23 | | | 109 | | | 0.24 | | | 115 | | | 0.24 | | | 126 | | | 0.25 | | | 135 | | | 0.26 | | | (6) | | | (32) | |
Other consumer | 35 | | | 0.12 | | | 34 | | | 0.12 | | | 35 | | | 0.12 | | | 32 | | | 0.11 | | | 33 | | | 0.12 | | | 1 | | | 2 | |
Total consumer | 3,273 | | | 0.86 | | | 3,336 | | | 0.87 | | | 3,342 | | | 0.86 | | | 3,416 | | | 0.87 | | | 3,457 | | | 0.88 | | | (63) | | | (184) | |
Total nonaccrual loans | 8,434 | | | 0.92 | | | 8,075 | | | 0.88 | | | 8,256 | | | 0.88 | | | 8,002 | | | 0.85 | | | 6,886 | | | 0.73 | | | 359 | | | 1,548 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Foreclosed assets | 216 | | | | | 165 | | | | | 187 | | | | | 177 | | | | | 133 | | | | | 51 | | | 83 | |
Total nonperforming assets | $ | 8,650 | | | 0.94 | % | | $ | 8,240 | | | 0.89 | % | | $ | 8,443 | | | 0.90 | % | | $ | 8,179 | | | 0.87 | % | | $ | 7,019 | | | 0.74 | % | | $ | 410 | | | 1,631 | |
By segment: | | | | | | | | | | | | | | | | | | | | | | | |
Consumer Banking and Lending | $ | 3,194 | | | 0.98 | % | | $ | 3,240 | | | 0.99 | % | | $ | 3,273 | | | 0.98 | % | | $ | 3,354 | | | 1.00 | % | | $ | 3,416 | | | 1.02 | % | | $ | (46) | | | (222) | |
Commercial Banking | 980 | | | 0.43 | | | 932 | | | 0.41 | | | 1,012 | | | 0.45 | | | 1,024 | | | 0.45 | | | 1,164 | | | 0.51 | | | 48 | | | (184) | |
Corporate and Investing Banking | 4,265 | | | 1.55 | | | 3,831 | | | 1.39 | | | 3,935 | | | 1.37 | | | 3,588 | | | 1.24 | | | 2,243 | | | 0.77 | | | 434 | | | 2,022 | |
Wealth and Investment Management | 211 | | | 0.25 | | | 237 | | | 0.29 | | | 223 | | | 0.27 | | | 213 | | | 0.26 | | | 196 | | | 0.24 | | | (26) | | | 15 | |
Corporate | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Total nonperforming assets | $ | 8,650 | | | 0.94 | % | | $ | 8,240 | | | 0.89 | % | | $ | 8,443 | | | 0.90 | % | | $ | 8,179 | | | 0.87 | % | | $ | 7,019 | | | 0.74 | % | | $ | 410 | | | 1,631 | |
| | | | | | | | | | | | | | | | | | | | | | | |
(1)Residential mortgage loans predominantly insured by the FHA or guaranteed by the VA are not placed on nonaccrual status because they are insured or guaranteed.
Wells Fargo & Company and Subsidiaries
COMMERCIAL AND INDUSTRIAL LOANS AND LEASE FINANCING BY INDUSTRY
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 |
($ in millions) | Nonaccrual loans | | Loans outstanding balance | | % of total loans | | Total commitments (1) | | Nonaccrual loans | | Loans outstanding balance | | % of total loans | | Total commitments (1) | | Nonaccrual loans | | Loans outstanding balance | | % of total loans | | Total commitments (1) |
Financials except banks | $ | 51 | | | 145,269 | | | 16 | % | | $ | 231,777 | | | $ | 40 | | | 140,105 | | | 15 | % | | $ | 230,518 | | | $ | 10 | | | 148,643 | | | 16 | % | | $ | 232,177 | |
Technology, telecom and media | 87 | | | 24,661 | | | 3 | | 61,246 | | | 95 | | | 25,021 | | | 3 | | 63,450 | | | 43 | | | 27,186 | | | 3 | | 65,437 | |
Real estate and construction | 87 | | | 26,090 | | | 3 | | 54,542 | | | 64 | | | 25,800 | | | 3 | | 54,633 | | | 61 | | | 25,180 | | | 3 | | 55,929 | |
Equipment, machinery and parts manufacturing | 37 | | | 25,727 | | | 3 | | 49,539 | | | 35 | | | 25,914 | | | 3 | | 48,633 | | | 187 | | | 26,032 | | | 3 | | 48,614 | |
Retail | 53 | | | 19,674 | | | 2 | | 47,691 | | | 59 | | | 19,841 | | | 2 | | 48,926 | | | 83 | | | 20,658 | | | 2 | | 50,233 | |
Materials and commodities | 28 | | | 14,842 | | | 2 | | 37,380 | | | 86 | | | 15,301 | | | 2 | | 38,653 | | | 185 | | | 16,073 | | | 2 | | 40,820 | |
Food and beverage manufacturing | 22 | | | 16,535 | | | 2 | | 33,390 | | | 20 | | | 16,321 | | | 2 | | 33,212 | | | 3 | | | 16,161 | | | 2 | | 33,081 | |
Oil, gas and pipelines | 26 | | | 10,308 | | | 1 | | 32,284 | | | 30 | | | 10,125 | | | 1 | | 32,316 | | | 32 | | | 10,456 | | | 1 | | 32,157 | |
Auto related | 11 | | | 17,224 | | | 2 | | 30,723 | | | 11 | | | 15,669 | | | 2 | | 29,298 | | | 8 | | | 13,888 | | | 1 | | 28,264 | |
Health care and pharmaceuticals | 66 | | | 14,508 | | | 2 | | 29,647 | | | 69 | | | 15,001 | | | 2 | | 29,857 | | | 19 | | | 14,996 | | | 2 | | 30,655 | |
Commercial services | 33 | | | 10,699 | | | 1 | | 26,288 | | | 43 | | | 10,813 | | | 1 | | 26,054 | | | 57 | | | 11,206 | | | 1 | | 26,355 | |
Utilities | 1 | | | 6,839 | | | * | | 24,269 | | | 1 | | | 7,020 | | | * | | 24,515 | | | 1 | | | 7,709 | | | * | | 24,736 | |
Diversified or miscellaneous | 56 | | | 8,395 | | | * | | 21,908 | | | 52 | | | 9,191 | | | * | | 22,072 | | | 2 | | | 8,069 | | | * | | 20,156 | |
Entertainment and recreation | 22 | | | 13,040 | | | 1 | | 19,429 | | | 20 | | | 13,830 | | | 1 | | 19,837 | | | 25 | | | 12,935 | | | 1 | | 19,273 | |
Insurance and fiduciaries | 1 | | | 5,749 | | | * | | 17,285 | | | 1 | | | 5,230 | | | * | | 16,482 | | | 1 | | | 5,016 | | | * | | 15,347 | |
Transportation services | 161 | | | 9,407 | | | 1 | | 16,360 | | | 133 | | | 8,956 | | | * | | 15,901 | | | 147 | | | 8,993 | | | * | | 16,057 | |
Agribusiness | 11 | | | 5,980 | | | * | | 11,235 | | | 17 | | | 6,476 | | | * | | 11,927 | | | 6 | | | 6,107 | | | * | | 11,510 | |
Government and education | 40 | | | 5,566 | | | * | | 11,075 | | | 24 | | | 5,320 | | | * | | 11,471 | | | 27 | | | 6,168 | | | * | | 12,320 | |
Banks | — | | | 8,276 | | | * | | 9,314 | | | — | | | 9,163 | | | * | | 10,307 | | | — | | | 11,080 | | | 1 | | 11,984 | |
Other | 47 | | | 2,504 | | | * | | 12,133 | | | 26 | | | 4,445 | | | * | | 12,486 | | | 25 | | | 4,789 | | | * | | 12,187 | |
Total | $ | 840 | | | 391,293 | | | 43 | % | | $ | 777,515 | | | $ | 826 | | | 389,542 | | | 42 | % | | $ | 780,548 | | | $ | 922 | | | 401,345 | | | 42 | % | | $ | 787,292 | |
*Less than 1%.
(1)Total commitments consists of loans outstanding plus unfunded credit commitments, excluding issued letters of credit and discretionary amounts where our approval or consent is required prior to any loan funding or commitment increase.
Wells Fargo & Company and Subsidiaries
COMMERCIAL REAL ESTATE LOANS BY PROPERTY TYPE (1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Jun 30, 2024 | | Mar 31, 2024 | | Jun 30, 2023 |
($ in millions) | Nonaccrual loans | | Loans outstanding balance | | % of total loans | | Total commitments (2) | | Nonaccrual loans | | Loans outstanding balance | | % of total loans | | Total commitments (2) | | Nonaccrual loans | | Loans outstanding balance | | % of total loans | | Total commitments (2) |
Apartments | $ | 28 | | | 42,673 | | | 5 | % | | $ | 49,996 | | | $ | 46 | | | 42,680 | | | 5 | % | | $ | 50,220 | | | $ | 9 | | | 40,752 | | | 4 | % | | $ | 50,699 | |
Office | 3,693 | | | 30,014 | | | 3 | | 31,946 | | | 3,136 | | | 30,477 | | | 3 | | | 32,725 | | | 1,517 | | | 33,089 | | | 3 | | | 36,757 | |
Industrial/warehouse | 25 | | | 24,644 | | | 3 | | 27,035 | | | 26 | | | 25,734 | | | 3 | | | 27,972 | | | 38 | | | 23,900 | | | 3 | | | 27,802 | |
Retail (excluding shopping center) | 114 | | | 11,273 | | | 1 | | 12,197 | | | 264 | | | 11,480 | | | 1 | | | 12,220 | | | 357 | | | 11,412 | | | 1 | | | 12,334 | |
Hotel/motel | 252 | | | 11,524 | | | 1 | | 12,053 | | | 186 | | | 12,523 | | | 1 | | | 13,239 | | | 149 | | | 12,923 | | | 1 | | | 13,910 | |
Shopping center | 165 | | | 8,718 | | | * | | 9,256 | | | 177 | | | 8,661 | | | * | | 9,263 | | | 193 | | | 9,249 | | | * | | 9,816 | |
Institutional | 13 | | | 5,555 | | | * | | 5,992 | | | 41 | | | 5,795 | | | * | | 6,284 | | | 118 | | | 6,099 | | | * | | 6,906 | |
Mixed use properties | 22 | | | 2,923 | | | * | | 3,117 | | | 27 | | | 2,971 | | | * | | 3,095 | | | 113 | | | 5,343 | | | * | | 6,330 | |
Storage facility | — | | | 2,345 | | | * | | 2,507 | | | — | | | 2,744 | | | * | | 2,964 | | | — | | | 2,983 | | | * | | 3,299 | |
1-4 family structure | — | | | 1,143 | | | * | | 2,455 | | | — | | | 1,397 | | | * | | 2,756 | | | — | | | 1,255 | | | * | | 3,185 | |
Other | 9 | | | 4,506 | | | * | | 5,204 | | | 10 | | | 4,324 | | | * | | 5,062 | | | 13 | | | 7,271 | | | * | | 8,586 | |
Total | $ | 4,321 | | | 145,318 | | | 15 | % | | $ | 161,758 | | | $ | 3,913 | | | 148,786 | | | 16 | % | | $ | 165,800 | | | $ | 2,507 | | | 154,276 | | | 16 | % | | $ | 179,624 | |
*Less than 1%.
(1)Our commercial real estate (CRE) loan portfolio is comprised of CRE mortgage and CRE construction loans.
(2)Total commitments consists of loans outstanding plus unfunded credit commitments, excluding issued letters of credit.
Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY
We also evaluate our business based on certain ratios that utilize tangible common equity. Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, goodwill, certain identifiable intangible assets (other than MSRs) and goodwill and other intangibles on investments in consolidated portfolio companies, net of applicable deferred taxes. The ratios are (i) tangible book value per common share, which represents tangible common equity divided by common shares outstanding; and (ii) return on average tangible common equity (ROTCE), which represents our annualized earnings as a percentage of tangible common equity. The methodology of determining tangible common equity may differ among companies. Management believes that tangible book value per common share and return on average tangible common equity, which utilize tangible common equity, are useful financial measures because they enable management, investors, and others to assess the Company’s use of equity.
The tables below provide a reconciliation of these non-GAAP financial measures to GAAP financial measures.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Jun 30, 2024 % Change from |
($ in millions) | | | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2024 | | Jun 30, 2023 |
Tangible book value per common share: | | | | | | | | | | | | | | | |
Total equity | | | $ | 178,148 | | | 182,674 | | | 187,443 | | | 182,373 | | | 181,952 | | | (2) | % | | (2) | |
Adjustments: | | | | | | | | | | | | | | | |
Preferred stock | | | (16,608) | | | (18,608) | | | (19,448) | | | (19,448) | | | (19,448) | | | 11 | | | 15 | |
Additional paid-in capital on preferred stock | | | 141 | | | 146 | | | 157 | | | 157 | | | 173 | | | (3) | | | (18) | |
| | | | | | | | | | | | | | | |
Noncontrolling interests | | | (1,718) | | | (1,731) | | | (1,708) | | | (1,658) | | | (1,761) | | | 1 | | | 2 | |
Total common stockholders' equity | (A) | | 159,963 | | | 162,481 | | | 166,444 | | | 161,424 | | | 160,916 | | | (2) | | | (1) | |
Adjustments: | | | | | | | | | | | | | | | |
Goodwill | | | (25,172) | | | (25,173) | | | (25,175) | | | (25,174) | | | (25,175) | | | — | | | — | |
Certain identifiable intangible assets (other than MSRs) | | | (96) | | | (107) | | | (118) | | | (132) | | | (145) | | | 10 | | | 34 | |
Goodwill and other intangibles on investments in consolidated portfolio companies (included in other assets) (1) | | | (968) | | | (965) | | | (878) | | | (878) | | | (2,511) | | | — | | | 61 | |
Applicable deferred taxes related to goodwill and other intangible assets (2) | | | 933 | | | 927 | | | 920 | | | 913 | | | 905 | | | 1 | | | 3 | |
Tangible common equity | (B) | | $ | 134,660 | | | 137,163 | | | 141,193 | | | 136,153 | | | 133,990 | | | (2) | | | 1 | |
Common shares outstanding | (C) | | 3,402.7 | | | 3,501.7 | | | 3,598.9 | | | 3,637.9 | | | 3,667.7 | | | (3) | | | (7) | |
Book value per common share | (A)/(C) | | 47.01 | | | 46.40 | | | 46.25 | | | 44.37 | | | 43.87 | | | 1 | | | 7 | |
Tangible book value per common share | (B)/(C) | | 39.57 | | | 39.17 | | | 39.23 | | | 37.43 | | | 36.53 | | | 1 | | | 8 | |
(1)In third quarter 2023, we sold investments in certain private equity funds. As a result, we have removed the related goodwill and other intangible assets on investments in consolidated portfolio companies.
(2)Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period-end.
Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter ended | | | Jun 30, 2024 % Change from | | Six months ended | | |
($ in millions) | | | Jun 30, 2024 | | | Mar 31, 2024 | | | Dec 31, 2023 | | | Sep 30, 2023 | | | Jun 30, 2023 | | | Mar 31, 2024 | | Jun 30, 2023 | | Jun 30, 2024 | Jun 30, 2023 | | % Change |
Return on average tangible common equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income applicable to common stock | (A) | | $ | 4,640 | | | | 4,313 | | | | 3,160 | | | | 5,450 | | | | 4,659 | | | | 8 | % | | — | | | $ | 8,953 | | 9,372 | | | (4) | % |
Average total equity | | | 181,552 | | | | 186,669 | | | | 185,853 | | | | 184,828 | | | | 184,443 | | | | (3) | | | (2) | | | 184,111 | | 184,371 | | | — | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock | | | (18,300) | | | | (19,291) | | | | (19,448) | | | | (20,441) | | | | (19,448) | | | | 5 | | | 6 | | | (18,795) | | (19,448) | | | 3 | |
Additional paid-in capital on preferred stock | | | 145 | | | | 155 | | | | 157 | | | | 171 | | | | 173 | | | | (6) | | | (16) | | | 150 | | 173 | | | (13) | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Noncontrolling interests | | | (1,743) | | | | (1,710) | | | | (1,664) | | | | (1,775) | | | | (1,924) | | | | (2) | | | 9 | | | (1,727) | | (1,971) | | | 12 | |
Average common stockholders’ equity | (B) | | 161,654 | | | | 165,823 | | | | 164,898 | | | | 162,783 | | | | 163,244 | | | | (3) | | | (1) | | | 163,739 | | 163,125 | | | — | |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill | | | (25,172) | | | | (25,174) | | | | (25,173) | | | | (25,174) | | | | (25,175) | | | | — | | | — | | | (25,173) | | (25,174) | | | — | |
Certain identifiable intangible assets (other than MSRs) | | | (101) | | | | (112) | | | | (124) | | | | (137) | | | | (140) | | | | 10 | | | 28 | | | (106) | | (142) | | | 25 | |
Goodwill and other intangibles on investments in consolidated portfolio companies (included in other assets) (1) | | | (965) | | | | (879) | | | | (878) | | | | (2,539) | | | | (2,487) | | | | (10) | | | 61 | | | (922) | | (2,464) | | | 63 | |
Applicable deferred taxes related to goodwill and other intangible assets (2) | | | 931 | | | | 924 | | | | 918 | | | | 910 | | | | 903 | | | | 1 | | | 3 | | | 928 | | 899 | | | 3 | |
Average tangible common equity | (C) | | $ | 136,347 | | | | 140,582 | | | | 139,641 | | | | 135,843 | | | | 136,345 | | | | (3) | | | — | | | $ | 138,466 | | 136,244 | | | 2 | |
Return on average common stockholders’ equity (ROE) (annualized) | (A)/(B) | | 11.5 | % | | | 10.5 | | | | 7.6 | | | | 13.3 | | | | 11.4 | | | | | | | | 11.0 | % | 11.6 | | | |
Return on average tangible common equity (ROTCE) (annualized) | (A)/(C) | | 13.7 | | | | 12.3 | | | | 9.0 | | | | 15.9 | | | | 13.7 | | | | | | | | 13.0 | | 13.9 | | | |
(1)In third quarter 2023, we sold investments in certain private equity funds. As a result, we have removed the related goodwill and other intangible assets on investments in consolidated portfolio companies.
(2)Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period-end.
Wells Fargo & Company and Subsidiaries
RISK-BASED CAPITAL RATIOS UNDER BASEL III – STANDARDIZED APPROACH (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Estimated | | | | | | | | | | |
($ in billions) | | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | | | |
Total equity | | $ | 178.1 | | | 182.7 | | | 187.4 | | | 182.4 | | | 182.0 | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | |
Preferred stock | | (16.6) | | | (18.6) | | | (19.4) | | | (19.4) | | | (19.4) | | | | | |
Additional paid-in capital on preferred stock | | 0.2 | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | | | | | |
| | | | | | | | | | | | | | |
Noncontrolling interests | | (1.7) | | | (1.7) | | | (1.7) | | | (1.7) | | | (1.8) | | | | | |
Total common stockholders' equity | | 160.0 | | | 162.5 | | | 166.4 | | | 161.4 | | | 160.9 | | | | | |
Adjustments: | | | | | | | | | | | | | | |
Goodwill | | (25.2) | | | (25.2) | | | (25.2) | | | (25.2) | | | (25.2) | | | | | |
Certain identifiable intangible assets (other than MSRs) | | (0.1) | | | (0.1) | | | (0.1) | | | (0.1) | | | (0.1) | | | | | |
Goodwill and other intangibles on investments in consolidated portfolio companies (included in other assets) (2) | | (1.0) | | | (1.0) | | | (0.9) | | | (0.9) | | | (2.5) | | | | | |
Applicable deferred taxes related to goodwill and other intangible assets (3) | | 0.9 | | | 0.9 | | | 0.9 | | | 0.9 | | | 0.9 | | | | | |
| | | | | | | | | | | | | | |
Other (4) | | (0.4) | | | (0.4) | | | (0.3) | | | 0.1 | | | 0.2 | | | | | |
Common Equity Tier 1 | (A) | 134.2 | | | 136.7 | | | 140.8 | | | 136.2 | | | 134.2 | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Preferred stock | | 16.6 | | | 18.6 | | | 19.4 | | | 19.4 | | | 19.4 | | | | | |
Additional paid-in capital on preferred stock | | (0.2) | | | (0.1) | | | (0.1) | | | (0.1) | | | (0.1) | | | | | |
| | | | | | | | | | | | | | |
Other | | (0.1) | | | (0.3) | | | (0.3) | | | (0.3) | | | (0.3) | | | | | |
Total Tier 1 capital | (B) | 150.5 | | | 154.9 | | | 159.8 | | | 155.2 | | | 153.2 | | | | | |
| | | | | | | | | | | | | | |
Long-term debt and other instruments qualifying as Tier 2 | | 18.3 | | | 19.0 | | | 19.0 | | | 19.1 | | | 19.7 | | | | | |
Qualifying allowance for credit losses (5) | | 14.7 | | | 14.7 | | | 14.9 | | | 14.9 | | | 15.1 | | | | | |
Other | | (0.3) | | | (0.5) | | | (0.6) | | | (0.4) | | | (0.4) | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total qualifying capital | (C) | $ | 183.2 | | | 188.1 | | | 193.1 | | | 188.8 | | | 187.6 | | | | | |
| | | | | | | | | | | | | | |
Total risk-weighted assets (RWAs) | (D) | $ | 1,218.4 | | | 1,221.6 | | | 1,231.7 | | | 1,237.1 | | | 1,250.7 | | | | | |
| | | | | | | | | | | | | | |
Common Equity Tier 1 to total RWAs | (A)/(D) | 11.0 | % | | 11.2 | | | 11.4 | | | 11.0 | | | 10.7 | | | | | |
Tier 1 capital to total RWAs | (B)/(D) | 12.4 | | | 12.7 | | | 13.0 | | | 12.6 | | | 12.2 | | | | | |
Total capital to total RWAs | (C)/(D) | 15.0 | | | 15.4 | | | 15.7 | | | 15.3 | | | 15.0 | | | | | |
(1)The Basel III capital rules provide for two capital frameworks (the Standardized Approach and the Advanced Approach applicable to certain institutions), and we must calculate our CET1, Tier 1 and total capital ratios under both approaches.
(2)In third quarter 2023, we sold investments in certain private equity funds. As a result, we have removed the related goodwill and other intangible assets on investments in consolidated portfolio companies.
(3)Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period-end.
(4)Includes a $60 million increase for each period in 2024 and a $120 million increase for each period in 2023 related to a current expected credit loss accounting standard (CECL) transition provision. In second quarter 2020, the Company elected to apply a modified transition provision issued by federal banking regulators related to the impact of CECL on regulatory capital. The rule permits certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the allowance for credit losses (ACL) under CECL for each period until December 31, 2021, followed by a three-year phase-out period in which the benefit is reduced by 25% in year one, 50% in year two and 75% in year three.
(5)Under the Standardized Approach, the ACL is includable in Tier 2 capital up to 1.25% of Standardized credit RWAs with any excess ACL deducted from total RWAs.
Wells Fargo & Company and Subsidiaries
RISK-BASED CAPITAL RATIOS UNDER BASEL III – ADVANCED APPROACH (1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Estimated | | | | | | | | | | |
($ in billions) | | Jun 30, 2024 | | Mar 31, 2024 | | Dec 31, 2023 | | Sep 30, 2023 | | Jun 30, 2023 | | | | |
Total equity | | $ | 178.1 | | | 182.7 | | | 187.4 | | | 182.4 | | | 182.0 | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Adjustments: | | | | | | | | | | | | | | |
Preferred stock | | (16.6) | | | (18.6) | | | (19.4) | | | (19.4) | | | (19.4) | | | | | |
Additional paid-in capital on preferred stock | | 0.2 | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | | | | | |
| | | | | | | | | | | | | | |
Noncontrolling interests | | (1.7) | | | (1.7) | | | (1.7) | | | (1.7) | | | (1.8) | | | | | |
Total common stockholders' equity | | 160.0 | | | 162.5 | | | 166.4 | | | 161.4 | | | 160.9 | | | | | |
Adjustments: | | | | | | | | | | | | | | |
Goodwill | | (25.2) | | | (25.2) | | | (25.2) | | | (25.2) | | | (25.2) | | | | | |
Certain identifiable intangible assets (other than MSRs) | | (0.1) | | | (0.1) | | | (0.1) | | | (0.1) | | | (0.1) | | | | | |
Goodwill and other intangibles on investments in consolidated portfolio companies (included in other assets) (2) | | (1.0) | | | (1.0) | | | (0.9) | | | (0.9) | | | (2.5) | | | | | |
Applicable deferred taxes related to goodwill and other intangible assets (3) | | 0.9 | | | 0.9 | | | 0.9 | | | 0.9 | | | 0.9 | | | | | |
| | | | | | | | | | | | | | |
Other (4) | | (0.4) | | | (0.4) | | | (0.3) | | | 0.1 | | | 0.2 | | | | | |
Common Equity Tier 1 | (A) | 134.2 | | | 136.7 | | | 140.8 | | | 136.2 | | | 134.2 | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Preferred stock | | 16.6 | | | 18.6 | | | 19.4 | | | 19.4 | | | 19.4 | | | | | |
Additional paid-in capital on preferred stock | | (0.2) | | | (0.1) | | | (0.1) | | | (0.1) | | | (0.1) | | | | | |
| | | | | | | | | | | | | | |
Other | | (0.1) | | | (0.3) | | | (0.3) | | | (0.3) | | | (0.3) | | | | | |
Total Tier 1 capital | (B) | 150.5 | | | 154.9 | | | 159.8 | | | 155.2 | | | 153.2 | | | | | |
| | | | | | | | | | | | | | |
Long-term debt and other instruments qualifying as Tier 2 | | 18.3 | | | 19.0 | | | 19.0 | | | 19.1 | | | 19.7 | | | | | |
Qualifying allowance for credit losses (5) | | 4.4 | | | 4.4 | | | 4.5 | | | 4.5 | | | 4.5 | | | | | |
Other | | (0.3) | | | (0.5) | | | (0.6) | | | (0.4) | | | (0.4) | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total qualifying capital | (C) | $ | 172.9 | | | 177.8 | | | 182.7 | | | 178.4 | | | 177.0 | | | | | |
| | | | | | | | | | | | | | |
Total RWAs | (D) | $ | 1,091.4 | | | 1,099.6 | | | 1,114.3 | | | 1,130.8 | | | 1,118.4 | | | | | |
| | | | | | | | | | | | | | |
Common Equity Tier 1 to total RWAs | (A)/(D) | 12.3 | % | | 12.4 | | | 12.6 | | | 12.0 | | | 12.0 | | | | | |
Tier 1 capital to total RWAs | (B)/(D) | 13.8 | | | 14.1 | | | 14.3 | | | 13.7 | | | 13.7 | | | | | |
Total capital to total RWAs | (C)/(D) | 15.8 | | | 16.2 | | | 16.4 | | | 15.8 | | | 15.8 | | | | | |
(1)The Basel III capital rules provide for two capital frameworks (the Standardized Approach and the Advanced Approach applicable to certain institutions), and we must calculate our CET1, Tier 1 and total capital ratios under both approaches.
(2)In third quarter 2023, we sold investments in certain private equity funds. As a result, we have removed the related goodwill and other intangible assets on investments in consolidated portfolio companies.
(3)Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period-end.
(4)Includes a $60 million increase for each period in 2024 and a $120 million increase for each period in 2023 related to a CECL transition provision. In second quarter 2020, the Company elected to apply a modified transition provision issued by federal banking regulators related to the impact of CECL on regulatory capital. The rule permits certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the allowance for credit losses (ACL) under CECL for each period until December 31, 2021, followed by a three-year phase-out period in which the benefit is reduced by 25% in year one, 50% in year two and 75% in year three.
(5)Under the Advanced Approach, the ACL that exceeds expected credit losses is eligible for inclusion in Tier 2 capital, to the extent the excess allowance does not exceed 0.60% of Advanced credit RWAs with any excess ACL deducted from total RWAs.
© 2024 Wells Fargo Bank, N.A. All rights reserved. 2Q24 Financial Results July 12, 2024 Exhibit 99.3
22Q24 Financial Results 2Q24 results Financial Results ROE: 11.5% ROTCE: 13.7%1 Efficiency ratio: 64%2 Credit Quality Capital and Liquidity CET1 ratio: 11.0%6 LCR: 124%7 TLAC ratio: 24.8%8 • Provision for credit losses5 of $1.2 billion – Total net loan charge-offs of $1.3 billion, up $537 million, with net loan charge-offs of 0.57% of average loans (annualized) – Allowance for credit losses for loans of $14.8 billion, stable • Common Equity Tier 1 (CET1) capital6 of $134.2 billion • CET1 ratio6 of 11.0% under the Standardized Approach and 12.3% under the Advanced Approach • Liquidity coverage ratio (LCR)7 of 124% • Net income of $4.9 billion, or $1.33 per diluted common share • Revenue of $20.7 billion, up 1% – Net interest income of $11.9 billion, down 9% – Noninterest income of $8.8 billion, up 19% • Noninterest expense of $13.3 billion, up 2% • Pre-tax pre-provision profit3 of $7.4 billion, down 2% • Effective income tax rate of 20.3%4 • Average loans of $917.0 billion, down 3% • Average deposits of $1.3 trillion, stable Comparisons in the bullet points are for 2Q24 versus 2Q23, unless otherwise noted. Endnotes are presented starting on page 18.
32Q24 Financial Results 2Q24 earnings Quarter ended $ Change from $ in millions, except per share data 2Q24 1Q24 2Q23 1Q24 2Q23 Net interest income $11,923 12,227 13,163 ($304) (1,240) Noninterest income 8,766 8,636 7,370 130 1,396 Total revenue 20,689 20,863 20,533 (174) 156 Net charge-offs 1,303 1,157 764 146 539 Change in the allowance for credit losses (67) (219) 949 152 (1,016) Provision for credit losses1 1,236 938 1,713 298 (477) Noninterest expense 13,293 14,338 12,987 (1,045) 306 Pre-tax income 6,160 5,587 5,833 573 327 Income tax expense (benefit)2 1,251 964 930 287 321 Effective income tax rate (%) 20.3 % 17.3 15.8 304 bps 446 Net income $4,910 4,619 4,938 $291 (28) Diluted earnings per common share $1.33 1.20 1.25 $0.13 0.08 Diluted average common shares (# mm) 3,486.2 3,600.1 3,724.9 (114) (239) Return on equity (ROE) 11.5 % 10.5 11.4 109 bps 10 Return on average tangible common equity (ROTCE)3 13.7 12.3 13.7 135 (2) Efficiency ratio 64 69 63 (447) 100 Endnotes are presented starting on page 18.
42Q24 Financial Results 13,163 13,105 12,771 12,227 11,923 Net Interest Margin (NIM) on a taxable-equivalent basis 2Q23 3Q23 4Q23 1Q24 2Q24 2.75% Net interest income • Net interest income down $1.2 billion, or 9%, from 2Q23 due to the impact of higher interest rates on funding costs, including the impact of lower deposit balances and customer migration to higher yielding deposit products in Consumer Banking and Lending and Wealth and Investment Management, higher deposit costs in Commercial Banking and Corporate and Investment Banking, as well as lower loan balances, partially offset by higher yields on earning assets • Net interest income down $304 million, or 2%, from 1Q24 driven by the impact of higher funding costs, as well as lower loan balances, partially offset by a modest redeployment of cash balances into higher-yielding securities Net Interest Income ($ in millions) 3.09% 3.03% 2.92% 2.81% 1 Endnotes are presented starting on page 18.
52Q24 Financial Results Loans and deposits • Average loans down $28.9 billion, or 3%, year-over-year (YoY) driven by declines in most loan categories, partially offset by higher credit card loan balances • Total average loan yield of 6.40%, up 41 bps YoY reflecting the impact of higher interest rates and up 2 bps from 1Q24 • Period-end loans of $917.9 billion, down $30.1 billion, or 3%, YoY, and down $4.9 billion, or 1%, from 1Q24 • Average deposits down $972 million YoY reflecting customer migration to higher yielding alternatives and continued consumer spending; up $4.9 billion from 1Q24 on growth in all customer-facing lines of business • Period-end deposits up $21.3 billion, or 2%, YoY, and down $17.2 billion, or 1%, from 1Q24 Average Loans Outstanding ($ in billions) 945.9 943.2 938.0 928.1 917.0 553.0 551.5 548.3 542.1 534.8 392.9 391.7 389.7 386.0 382.2 Total Average Loan Yield Consumer Loans Commercial Loans 2Q23 3Q23 4Q23 1Q24 2Q24 5.99% 6.23% 6.35% 6.38% 6.40% Period-End Deposits ($ in billions) 2Q24 vs 1Q24 vs 2Q23 Consumer Banking and Lending $ 781.8 (2) % (5) % Commercial Banking 169.0 — 3 Corporate and Investment Banking 200.9 3 27 Wealth and Investment Management 103.7 1 (4) Corporate 110.5 (9) 20 Total deposits $ 1,365.9 (1) % 2 % Average deposit cost 1.84 % 0.10 0.71 1,347.4 1,340.3 1,340.9 1,341.6 1,346.5 823.3 801.1 779.5 773.2 778.2 166.7 160.6 163.3 164.0 166.9 160.3 157.2 173.1 183.3 187.5 112.4 107.5 102.1 101.5 102.8 84.7 113.9 122.9 119.6 111.1 Corporate Wealth and Investment Management Corporate and Investment Banking Commercial Banking Consumer Banking and Lending 2Q23 3Q23 4Q23 1Q24 2Q24 Period-End Loans Outstanding ($ in billions) 2Q24 vs 1Q24 vs 2Q23 Commercial $ 536.6 — % (3) % Consumer 381.3 (1) (3) Total Loans $ 917.9 (1) % (3) % Average Deposits ($ in billions)
62Q24 Financial Results Noninterest Income ($ in millions) 7,370 7,752 7,707 8,636 8,766 524 555 799 940 935 1,098 1,098 1,027 1,061 1,101 376 492 455 627 6411,122 1,265 1,070 1,454 1,442 1,517 1,551 1,568 1,597 1,618 2,733 2,791 2,788 2,957 3,029 Investment advisory fees and brokerage commissions Deposit and lending-related fees Net gains from trading activities Investment banking fees Card fees All other 2Q23 3Q23 4Q23 1Q24 2Q24 • Noninterest income increased $1.4 billion, or 19%, from 2Q23 – Investment advisory fees and brokerage commissions1 up $296 million, or 11%, predominantly driven by higher asset-based fees reflecting higher market valuations – Deposit and lending-related fees up $101 million, or 7%, driven by higher deposit-related fees including higher treasury management fees – Net gains from trading activities up $320 million, or 29%, reflecting market conditions, as well as investments in our Markets business – Investment banking fees up $265 million, or 70%, on increased activity across all products – All other2 up $411 million and included the impact from the adoption of a new accounting standard for renewable energy tax credit investments3, as well as improved results from our venture capital investments • Noninterest income up $130 million, or 2%, from 1Q24 – Investment advisory fees and brokerage commissions1 up $72 million, or 2%, as higher market valuations drove higher asset-based fees – Card fees up $40 million on higher credit card and debit card purchase volumes primarily reflecting seasonality Noninterest income 2 1 Endnotes are presented starting on page 18.
72Q24 Financial Results 12,987 13,113 15,786 14,338 13,293 4,149 4,157 4,319 3,929 4,173 8,606 8,627 8,212 9,492 8,575 1,931 Operating Losses FDIC Special Assessment Personnel Expense Non-personnel Expense 2Q23 3Q23 4Q23 1Q24 2Q24 Noninterest expense • Noninterest expense up $306 million, or 2%, from 2Q23 – Operating losses up $261 million including higher customer remediation accruals for historical matters – Personnel expense down $31 million and reflected the impact of efficiency initiatives, largely offset by higher revenue-related compensation expense predominantly in Wealth and Investment Management – Non-personnel expense up $24 million, or 1%, driven by higher technology amortization, occupancy expense, and advertising and promotion expense, partially offset by lower professional and outside services expense • Noninterest expense down $1.0 billion, or 7%, from 1Q24 – Operating losses down $140 million driven by lower customer remediation accruals – FDIC special assessment2 down $232 million – Personnel expense down $917 million from seasonally higher personnel expense in 1Q, as well as the impact of efficiency initiatives – Non-personnel expense up $244 million, or 6%, driven by higher charitable donations expense, occupancy expense, professional and outside services expense, and advertising and promotion expense Noninterest Expense ($ in millions) Headcount (Period-end, '000s) 2Q23 3Q23 4Q23 1Q24 2Q24 234 227 226 225 223 633 355 329232 9691 Endnotes are presented starting on page 18. 284 1 493 52
82Q24 Financial Results 1,713 1,197 1,282 938 1,236 764 850 1,252 1,149 1,301 Provision for Credit Losses Net Loan Charge-offs Net Loan Charge-off Ratio 2Q23 3Q23 4Q23 1Q24 2Q24 Credit quality: net loan charge-offs • Commercial net loan charge-offs up $127 million to 35 bps of average loans (annualized) reflecting an $84 million increase in commercial real estate (CRE) net loan charge-offs and $40 million of higher commercial & industrial net loan charge-offs – CRE net loan charge-offs of $271 million, or 74 bps of average loans (annualized) predominantly driven by CRE office net loan charge-offs • Consumer net loan charge-offs up $25 million to 88 bps of average loans (annualized) reflecting a $72 million increase in credit card net loan charge-offs, partially offset by $33 million of lower auto net loan charge-offs • Nonperforming assets of $8.7 billion, up $410 million, or 5%, predominantly driven by higher CRE nonaccruals – CRE nonaccrual loans of $4.3 billion, up $408 million driven by a $557 million increase in CRE office nonaccruals Provision for Credit Losses1 and Net Loan Charge-offs ($ in millions) Comparisons in the bullet points are for 2Q24 versus 1Q24. Endnotes are presented starting on page 18. 0.32% 0.36% 0.50%0.53% 1 0.57%
92Q24 Financial Results Credit quality: allowance for credit losses for loans Allowance for Credit Losses for Loans ($ in millions) • Allowance for credit losses for loans (ACL) down $73 million on modest ACL declines across most asset classes, partially offset by a higher ACL for credit card loans – Allowance coverage for total loans was up 5 bps from 2Q23 and was stable compared with 1Q24 • CRE Office ACL of $2.4 billion, down $5 million – CRE Office ACL as a % of loans of 8.0%, up modestly from 7.9% ◦ Corporate and Investment Banking (CIB) CRE Office ACL as a % of loans of 11.1%, up modestly from 11.0% 14,786 15,064 15,088 14,862 14,789 8,081 8,310 8,412 8,317 8,236 6,705 6,754 6,676 6,545 6,553 Commercial Consumer Allowance coverage for total loans 2Q23 3Q23 4Q23 1Q24 2Q24 1.60%1.56% 1.61% 1.61% 1.61% 1 CRE Allowance for Credit Losses (ACL) and Nonaccrual Loans, as of 6/30/24 ($ in millions) Allowance for Credit Losses Loans Outstanding ACL as a % of Loans Nonaccrual Loans CIB CRE Office $ 2,171 19,561 11.1% $ 3,589 All other CRE Office 232 10,453 2.2 104 Total CRE Office 2,403 30,014 8.0 3,693 All other CRE 1,351 115,304 1.2 628 Total CRE $ 3,754 145,318 2.6% $ 4,321 Comparisons in the bullet points are for 2Q24 versus 1Q24, unless otherwise noted.
102Q24 Financial Results Capital and liquidity Capital Position • Common Equity Tier 1 (CET1) ratio1 of 11.0% at June 30, 2024 remained above our regulatory minimum and buffers of 8.9%2 • The Company's stress capital buffer (SCB) for 10/1/24 through 9/30/25 is expected to increase to 3.8%, up 90 bps from current SCB of 2.9% Capital Return • $6.1 billion in gross common stock repurchases, or 100.5 million shares, in 2Q24 with period-end common shares outstanding down 265.0 million, or 7%, from 2Q23 • $1.2 billion in common stock dividends paid in 2Q24 with a common stock dividend of $0.35 per share • We expect to increase our 3Q24 common stock dividend to $0.40 per share, subject to approval by the Company's Board of Directors at its regularly scheduled meeting in July Total Loss Absorbing Capacity (TLAC) • As of June 30, 2024, our TLAC as a percentage of total risk-weighted assets3 was 24.8% compared with the required minimum of 21.5% Liquidity Position • Strong liquidity position with a 2Q24 LCR4 of 124% which remained above our regulatory minimum of 100% 10.7% 11.0% 11.4% 11.2% 11.0% 2Q23 3Q23 4Q23 1Q24 2Q24 Estimated 8.9% Regulatory Minimum and Buffers2 Common Equity Tier 1 Ratio under the Standardized Approach1 Endnotes are presented starting on page 18.
112Q24 Financial Results • Total revenue down 5% YoY and down 1% from 1Q24 – CSBB down 5% YoY driven by lower deposit balances and the impact of customer migration to higher yielding deposit products including promotional savings and time deposit accounts – Home Lending down 3% YoY on lower net interest income on lower loan balances; down 5% from 1Q24 on lower mortgage banking income – Credit Card stable YoY; down 3% from 1Q24 driven by lower net interest income, partially offset by higher purchase volumes reflecting seasonality and new account growth – Auto down 25% YoY driven by lower loan balances and loan spread compression; down 6% from 1Q24 driven by lower loan balances – Personal Lending down 4% YoY driven by lower loan balances and loan spread compression • Noninterest expense down 5% YoY and down 5% from 1Q24 reflecting lower operating costs and the impact of efficiency initiatives Consumer Banking and Lending Summary Financials $ in millions (mm) 2Q24 vs. 1Q24 vs. 2Q23 Revenue by line of business: Consumer, Small and Business Banking (CSBB) $6,129 $37 (319) Consumer Lending: Home Lending 823 (41) (24) Credit Card 1,452 (44) 3 Auto 282 (18) (96) Personal Lending 320 (19) (13) Total revenue 9,006 (85) (449) Provision for credit losses 932 144 58 Noninterest expense 5,701 (323) (326) Pre-tax income 2,373 94 (181) Net income $1,777 $71 (137) Selected Metrics 2Q24 1Q24 2Q23 Return on allocated capital1 15.1 % 14.5 16.9 Efficiency ratio2 63 66 64 Retail bank branches # 4,227 4,247 4,455 Digital (online and mobile) active customers3 (mm) 35.6 35.5 34.2 Mobile active customers3 (mm) 30.8 30.5 29.1 Average Balances and Selected Credit Metrics $ in billions 2Q24 1Q24 2Q23 Balances Loans $325.9 329.7 336.4 Deposits 778.2 773.2 823.3 Credit Performance Net charge-offs as a % of average loans 1.12 % 1.07 0.74 Endnotes are presented starting on page 18.
122Q24 Financial Results Consumer Banking and Lending Retail Mortgage Loan Originations ($ in billions) Auto Loan Originations ($ in billions) Credit Card Point of Sale (POS) Volume ($ in billions) Debit Card Purchase Volume and Transactions1 7.7 6.4 4.5 3.5 5.3 Refinances as a % of Retail Originations 2Q23 3Q23 4Q23 1Q24 2Q24 124.9 124.5 126.1 121.5 128.2 Purchase Volume ($ in billions) Purchase Transactions (billions) 2Q23 3Q23 4Q23 1Q24 2Q24 4.8 4.1 3.3 4.1 3.7 2Q23 3Q23 4Q23 1Q24 2Q24 38.3 39.4 41.2 39.1 42.9 2Q23 3Q23 4Q23 1Q24 2Q24 2.5 2.6 2.5 2.4 2.6 17% 16% 24% 18% 13% Endnotes are presented starting on page 18.
132Q24 Financial Results Commercial Banking • Total revenue down 7% YoY and down 1% from 1Q24 – Middle Market Banking revenue down 2% YoY driven by lower net interest income reflecting the impact of higher interest rates on deposit costs, partially offset by higher treasury management fees; up 4% from 1Q24 and included higher net interest income and higher treasury management fees – Asset-Based Lending and Leasing revenue down 17% YoY and included lower net interest income, lease income, and revenue from equity investments; down 10% from 1Q24 and included lower net interest income and lease income • Noninterest expense down 8% YoY on lower personnel expense reflecting the impact of efficiency initiatives, and lower operating costs; down 10% from 1Q24 on lower personnel expense reflecting 1Q seasonality and the impact of efficiency initiatives, as well as lower operating costs Summary Financials $ in millions 2Q24 vs. 1Q24 vs. 2Q23 Revenue by line of business: Middle Market Banking1 $2,153 $75 (46) Asset-Based Lending and Leasing1 969 (105) (201) Total revenue 3,122 (30) (247) Provision for credit losses 29 (114) 3 Noninterest expense 1,506 (173) (124) Pre-tax income 1,587 257 (126) Net income $1,182 $196 (99) Selected Metrics 2Q24 1Q24 2Q23 Return on allocated capital 17.3 % 14.3 19.3 Efficiency ratio 48 53 48 Average loans by line of business ($ in billions) Middle Market Banking 1 $128.2 119.3 122.2 Asset-Based Lending and Leasing1 96.2 104.6 103.6 Total loans $224.4 223.9 225.8 Average deposits 166.9 164.0 166.7 Endnotes are presented starting on page 18.
142Q24 Financial Results Corporate and Investment Banking • Total revenue up 4% YoY and down 3% from 1Q24 – Banking revenue up 3% YoY driven by higher investment banking revenue on increased activity across all products, partially offset by lower treasury management results driven by the impact of higher interest rates on deposit costs; down 2% from 1Q24 on lower investment banking revenue – Commercial Real Estate revenue down 4% YoY and included the impact of lower loan balances, partially offset by higher commercial mortgage-backed securities volumes; up 5% from 1Q24 predominantly driven by higher commercial real estate capital markets revenue, partially offset by the impact of lower loan balances – Markets revenue up 16% YoY driven by higher revenue in equities, structured products, and credit products, partially offset by lower revenue in rates products; down 2% from 1Q24 driven by lower trading activity across most FICC asset classes, partially offset by higher equities revenue • Noninterest expense up 4% YoY driven by higher operating costs, partially offset by the impact of efficiency initiatives; down 7% from 1Q24 on lower personnel expense due to 1Q seasonality Summary Financials $ in millions 2Q24 vs. 1Q24 vs. 2Q23 Revenue by line of business: Banking: Lending $688 $7 3 Treasury Management and Payments 687 1 (75) Investment Banking 430 (44) 119 Total Banking 1,805 (36) 47 Commercial Real Estate 1,283 60 (50) Markets: Fixed Income, Currencies and Commodities (FICC) 1,228 (131) 95 Equities 558 108 161 Credit Adjustment (CVA/DVA) and Other 7 (12) (7) Total Markets 1,793 (35) 249 Other (43) (133) (39) Total revenue 4,838 (144) 207 Provision for credit losses 285 280 (648) Noninterest expense 2,170 (160) 83 Pre-tax income 2,383 (264) 772 Net income $1,785 ($196) 575 Selected Metrics 2Q24 1Q24 2Q23 Return on allocated capital 15.4 % 17.2 10.2 Efficiency ratio 45 47 45 Average Balances ($ in billions) Loans by line of business 2Q24 1Q24 2Q23 Banking $86.1 90.9 95.4 Commercial Real Estate 128.1 131.7 136.5 Markets 61.6 60.6 59.6 Total loans $275.8 283.2 291.5 Deposits 187.5 183.3 160.3 Trading-related assets 219.5 201.2 196.1
152Q24 Financial Results Wealth and Investment Management Summary Financials $ in millions 2Q24 vs. 1Q24 vs. 2Q23 Net interest income $906 $37 (103) Noninterest income 2,952 79 313 Total revenue 3,858 116 210 Provision for credit losses (14) (17) (38) Noninterest expense 3,193 (37) 219 Pre-tax income 679 170 29 Net income $484 $103 (3) Selected Metrics ($ in billions) 2Q24 1Q24 2Q23 Return on allocated capital 29.0 % 22.7 30.5 Efficiency ratio 83 86 82 Average loans $83.2 82.5 83.0 Average deposits 102.8 101.5 112.4 Client assets Advisory assets 945 939 850 Other brokerage assets and deposits 1,255 1,247 1,148 Total client assets $2,200 2,186 1,998 • Total revenue up 6% YoY and up 3% from 1Q24 – Net interest income down 10% YoY driven by lower deposit balances and higher deposit costs as customers reallocated cash into higher yielding alternatives – Noninterest income up 12% YoY and up 3% from 1Q24 driven by higher asset- based fees reflecting an increase in market valuations • Noninterest expense up 7% YoY on higher revenue-related compensation and higher operating losses, partially offset by lower operating costs and the impact of efficiency initiatives
162Q24 Financial Results Corporate • Revenue increased YoY on higher net equity gains reflecting improved results from our venture capital investments; down from 1Q24 on higher crediting rates paid to the operating segments • Noninterest expense up YoY and included higher operating losses and FDIC assessments; down from 1Q24 reflecting lower personnel expense from a seasonally higher 1Q, as well as lower FDIC assessments and operating losses Summary Financials $ in millions 2Q24 vs. 1Q24 vs. 2Q23 Net interest income ($144) ($176) (53) Noninterest income 392 101 271 Total revenue 248 (75) 218 Provision for credit losses 4 5 148 Noninterest expense 723 (352) 454 Pre-tax loss (479) 272 (384) Income tax benefit (157) 160 (54) Less: Net loss from noncontrolling interests (4) (5) 34 Net loss ($318) $117 (364)
172Q24 Financial Results 2024 Outlook Endnotes are presented starting on page 18. Still expect 2024 net interest income to be in the range of down ~7-9% from 2023 level of $52.4 billion • Currently expect to be in the upper half of the range, or down ~8-9%, but we are only halfway through the year and many of the factors driving net interest income are uncertain Net Interest Income Noninterest Expense Expect 2024 noninterest expense to be ~$54.0 billion, up from prior guidance of ~$52.6 billion, and includes: • Higher revenue-related compensation expense as equity markets have outperformed our expectations (more than offset by higher noninterest income) • Operating losses and other customer remediation-related expenses, which have been higher than expected in the first half of 2024 • FDIC special assessment1 expense of $336 million in the first half of 2024 As previously disclosed, we have outstanding litigation, regulatory, and customer remediation matters that could impact operating losses
182Q24 Financial Results Endnotes Page 2 – 2Q24 results 1. Tangible common equity and return on average tangible common equity (ROTCE) are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” table on page 20. 2. The efficiency ratio is noninterest expense divided by total revenue. 3. Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle. 4. In first quarter 2024, we adopted a new accounting standard to use the proportional amortization method for renewable energy tax credit investments. Under the proportional amortization method, the amortization of the investments and the related tax impacts are both recognized in income tax expense. Previously, we recognized the amortization of the investments in other noninterest income and the related tax impacts were recognized in income tax expense. 5. Includes provision for credit losses for loans, debt securities, and other financial assets. 6. The Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach is our binding CET1 ratio. See page 21 for additional information regarding CET1 capital and ratios. CET1 is a preliminary estimate. 7. Liquidity coverage ratio (LCR) represents average high-quality liquid assets divided by average projected net cash outflows, as each is defined under the LCR rule. LCR is a preliminary estimate. 8. Represents total loss absorbing capacity (TLAC) divided by risk-weighted assets (RWAs), which is our binding TLAC ratio, determined by using the greater of RWAs under the Standardized and Advanced Approaches. TLAC is a preliminary estimate. Page 3 – 2Q24 earnings 1. Includes provision for credit losses for loans, debt securities, and other financial assets. 2. In first quarter 2024, we adopted a new accounting standard to use the proportional amortization method for renewable energy tax credit investments. Under the proportional amortization method, the amortization of the investments and the related tax impacts are both recognized in income tax expense. Previously, we recognized the amortization of the investments in other noninterest income and the related tax impacts were recognized in income tax expense. 3. Tangible common equity and return on average tangible common equity (ROTCE) are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” table on page 20. Page 4 – Net interest income 1. Includes taxable-equivalent adjustments predominantly related to tax-exempt income on certain loans and securities. Page 6 – Noninterest income 1. Investment advisory fees and brokerage commissions includes investment advisory and other asset-based fees and commissions and brokerage services fees. 2. All other includes mortgage banking, net gains (losses) from debt securities, net gains (losses) from equity securities, lease income, and other. 3. In first quarter 2024, we adopted a new accounting standard to use the proportional amortization method for renewable energy tax credit investments. Under the proportional amortization method, the amortization of the investments and the related tax impacts are both recognized in income tax expense. Previously, we recognized the amortization of the investments in other noninterest income and the related tax impacts were recognized in income tax expense. Page 7 – Noninterest expense 1. 4Q23 total personnel expense of $9.2 billion included $969 million of severance expense for planned actions. 2. Federal Deposit Insurance Corporation (FDIC) special assessment expense reflects updates provided by the FDIC on losses to the deposit insurance fund.
192Q24 Financial Results Endnotes (continued) Page 8 – Credit quality: net loan charge-offs 1. Includes provision for credit losses for loans, debt securities, and other financial assets. Page 10 – Capital and liquidity 1. The Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach is our binding CET1 ratio. See page 21 for additional information regarding CET1 capital and ratios. 2Q24 CET1 is a preliminary estimate. 2. Includes a 4.50% minimum requirement, a stress capital buffer of 2.90%, and a G-SIB capital surcharge of 1.50%. 3. Represents total loss absorbing capacity (TLAC) divided by risk-weighted assets (RWAs), which is our binding TLAC ratio, determined by using the greater of RWAs under the Standardized and Advanced Approaches. TLAC is a preliminary estimate. 4. Liquidity coverage ratio (LCR) represents average high-quality liquid assets divided by average projected net cash outflows, as each is defined under the LCR rule. 2Q24 LCR is a preliminary estimate. Page 11 – Consumer Banking and Lending 1. Return on allocated capital is segment net income (loss) applicable to common stock divided by segment average allocated capital. Segment net income (loss) applicable to common stock is segment net income (loss) less allocated preferred stock dividends. 2. Efficiency ratio is segment noninterest expense divided by segment total revenue. 3. Digital and mobile active customers is the number of consumer and small business customers who have logged on via a digital or mobile device, respectively, in the prior 90 days. Page 12 – Consumer Banking and Lending 1. Debit card purchase volume and transactions reflect combined activity for both consumer and business debit card purchases. Page 13 – Commercial Banking 1. In second quarter 2024, we prospectively transferred our commercial auto business from Asset-Based Lending and Leasing to Middle Market Banking. Page 17 – 2024 Outlook 1. Federal Deposit Insurance Corporation (FDIC) special assessment expense reflects updates provided by the FDIC on losses to the deposit insurance fund.
202Q24 Financial Results Tangible Common Equity Wells Fargo & Company and Subsidiaries TANGIBLE COMMON EQUITY We also evaluate our business based on certain ratios that utilize tangible common equity. Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, goodwill, certain identifiable intangible assets (other than MSRs) and goodwill and other intangibles on investments in consolidated portfolio companies, net of applicable deferred taxes. One of these ratios is return on average tangible common equity (ROTCE), which represents our annualized earnings as a percentage of tangible common equity. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables management, investors, and others to assess the Company’s use of equity. The table below provides a reconciliation of this non-GAAP financial measure to GAAP financial measures. Quarter ended ($ in millions) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Return on average tangible common equity: Net income applicable to common stock (A) $ 4,640 4,313 3,160 5,450 4,659 Average total equity 181,552 186,669 185,853 184,828 184,443 Adjustments: Preferred stock (18,300) (19,291) (19,448) (20,441) (19,448) Additional paid-in capital on preferred stock 145 155 157 171 173 Noncontrolling interests (1,743) (1,710) (1,664) (1,775) (1,924) Average common stockholders’ equity (B) 161,654 165,823 164,898 162,783 163,244 Adjustments: Goodwill (25,172) (25,174) (25,173) (25,174) (25,175) Certain identifiable intangible assets (other than MSRs) (101) (112) (124) (137) (140) Goodwill and other intangibles on investments in consolidated portfolio companies (included in other assets)1 (965) (879) (878) (2,539) (2,487) Applicable deferred taxes related to goodwill and other intangible assets2 931 924 918 910 903 Average tangible common equity (C) $ 136,347 140,582 139,641 135,843 136,345 Return on average common stockholders’ equity (ROE) (annualized) (A)/(B) 11.5 % 10.5 7.6 13.3 11.4 Return on average tangible common equity (ROTCE) (annualized) (A)/(C) 13.7 12.3 9.0 15.9 13.7 1. In third quarter 2023, we sold investments in certain private equity funds. As a result, we have removed the related goodwill and other intangible assets on investments in consolidated portfolio companies. 2. Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period-end.
212Q24 Financial Results 1. The Basel III capital rules provide for two capital frameworks (the Standardized Approach and the Advanced Approach applicable to certain institutions), and we must calculate our CET1, Tier 1 and total capital ratios under both approaches. 2. In third quarter 2023, we sold investments in certain private equity funds. As a result, we have removed the related goodwill and other intangible assets on investments in consolidated portfolio companies. 3. Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period-end. 4. Includes a $60 million increase for each period in 2024 and a $120 million increase for each period in 2023 related to a current expected credit loss accounting standard (CECL) transition provision. In second quarter 2020, the Company elected to apply a modified transition provision issued by federal banking regulators related to the impact of CECL on regulatory capital. The rule permits certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the allowance for credit losses (ACL) under CECL for each period until December 31, 2021, followed by a three-year phase-out period in which the benefit is reduced by 25% in year one, 50% in year two and 75% in year three. Common Equity Tier 1 under Basel III Wells Fargo & Company and Subsidiaries RISK-BASED CAPITAL RATIOS UNDER BASEL III1 Estimated ($ in billions) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Total equity $ 178.1 182.7 187.4 182.4 182.0 Adjustments: Preferred stock (16.6) (18.6) (19.4) (19.4) (19.4) Additional paid-in capital on preferred stock 0.2 0.1 0.1 0.1 0.1 Noncontrolling interests (1.7) (1.7) (1.7) (1.7) (1.8) Total common stockholders' equity 160.0 162.5 166.4 161.4 160.9 Adjustments: Goodwill (25.2) (25.2) (25.2) (25.2) (25.2) Certain identifiable intangible assets (other than MSRs) (0.1) (0.1) (0.1) (0.1) (0.1) Goodwill and other intangibles on investments in consolidated portfolio companies (included in other assets)2 (1.0) (1.0) (0.9) (0.9) (2.5) Applicable deferred taxes related to goodwill and other intangible assets3 0.9 0.9 0.9 0.9 0.9 Other4 (0.4) (0.4) (0.3) 0.1 0.2 Common Equity Tier 1 (A) $ 134.2 136.7 140.8 136.2 134.2 Total risk-weighted assets (RWAs) under Standardized Approach (B) 1,218.4 1,221.6 1,231.7 1,237.1 1,250.7 Total RWAs under Advanced Approach (C) 1,091.4 1,099.6 1,114.3 1,130.8 1,118.4 Common Equity Tier 1 to total RWAs under Standardized Approach (A)/(B) 11.0 % 11.2 11.4 11.0 10.7 Common Equity Tier 1 to total RWAs under Advanced Approach (A)/(C) 12.3 12.4 12.6 12.0 12.0
222Q24 Financial Results Disclaimer and forward-looking statements Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information. This document contains forward-looking statements. In addition, we may make forward-looking statements in our other documents filed or furnished with the Securities and Exchange Commission, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can” and similar references to future periods. In particular, forward-looking statements include, but are not limited to, statements we make about: (i) the future operating or financial performance of the Company, including our outlook for future growth; (ii) our expectations regarding noninterest expense and our efficiency ratio; (iii) future credit quality and performance, including our expectations regarding future loan losses, our allowance for credit losses, and the economic scenarios considered to develop the allowance; (iv) our expectations regarding net interest income and net interest margin; (v) loan growth or the reduction or mitigation of risk in our loan portfolios; (vi) future capital or liquidity levels, ratios or targets; (vii) our expectations regarding our mortgage business and any related commitments or exposures; (viii) the expected outcome and impact of legal, regulatory and legislative developments, as well as our expectations regarding compliance therewith; (ix) future common stock dividends, common share repurchases and other uses of capital; (x) our targeted range for return on assets, return on equity, and return on tangible common equity; (xi) expectations regarding our effective income tax rate; (xii) the outcome of contingencies, such as legal actions; (xiii) environmental, social and governance related goals or commitments; and (xiv) the Company’s plans, objectives and strategies. Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions. Investors are urged to not unduly rely on forward-looking statements as actual results may differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. For additional information about factors that could cause actual results to differ materially from our expectations, refer to the “Forward-Looking Statements” discussion in Wells Fargo’s press release announcing our second quarter 2024 results and in our most recent Quarterly Report on Form 10-Q, as well as to Wells Fargo’s other reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023.
v3.24.2
Document and Entity Information Document
|
Jul. 12, 2024 |
Entity Information [Line Items] |
|
Document Type |
8-K
|
Document Period End Date |
Jul. 12, 2024
|
Entity Registrant Name |
WELLS FARGO & COMPANY/MN
|
Entity Central Index Key |
0000072971
|
Amendment Flag |
false
|
Entity Incorporation, State or Country Code |
DE
|
Entity File Number |
001-02979
|
Entity Tax Identification Number |
41-0449260
|
Entity Address, Address Line One |
420 Montgomery Street
|
Entity Address, City or Town |
San Francisco
|
Entity Address, State or Province |
CA
|
Entity Address, Postal Zip Code |
94104
|
City Area Code |
866
|
Local Phone Number |
249-3302
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Common Stock, par value $1-2/3 |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Common Stock, par value $1-2/3
|
Trading Symbol |
WFC
|
Security Exchange Name |
NYSE
|
7.5% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L [Member] |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
7.5% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L
|
Trading Symbol |
WFC.PRL
|
Security Exchange Name |
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Y |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Y
|
Trading Symbol |
WFC.PRY
|
Security Exchange Name |
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Z |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Z
|
Trading Symbol |
WFC.PRZ
|
Security Exchange Name |
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series AA |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series AA
|
Trading Symbol |
WFC.PRA
|
Security Exchange Name |
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series CC |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series CC
|
Trading Symbol |
WFC.PRC
|
Security Exchange Name |
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series DD |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series DD
|
Trading Symbol |
WFC.PRD
|
Security Exchange Name |
NYSE
|
Guarantee of Medium-Term Notes, Series A, due October 30, 2028 of Wells Fargo Finance LLC [Member] |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Guarantee of Medium-Term Notes, Series A, due October 30, 2028 of Wells Fargo Finance LLC
|
Trading Symbol |
WFC/28A
|
Security Exchange Name |
NYSE
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonStockMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=wfc_A7.5NonCumulativePerpetualConvertibleClassAPreferredStockSeriesLMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=wfc_NonCumulativePerpetualClassAPreferredStockSeriesYMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=wfc_NonCumulativePerpetualClassAPreferredStockSeriesZMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=wfc_NonCumulativePerpetualClassAPreferredStockSeriesAAMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=wfc_NonCumulativePerpetualClassAPreferredStockSeriesCCMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=wfc_NonCumulativePerpetualClassAPreferredStockSeriesDDMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
X |
- Details
Name: |
us-gaap_StatementClassOfStockAxis=wfc_GuaranteeofMediumTermNotesSeriesAdueOctober302028ofWellsFargoFinanceLLCMember |
Namespace Prefix: |
|
Data Type: |
na |
Balance Type: |
|
Period Type: |
|
|
Wells Fargo (NYSE:WFC-Z)
Historical Stock Chart
From Sep 2024 to Oct 2024
Wells Fargo (NYSE:WFC-Z)
Historical Stock Chart
From Oct 2023 to Oct 2024