1Q24 Quarterly Supplement
Wells Fargo & Company and Subsidiaries | |
QUARTERLY FINANCIAL DATA | |
TABLE OF CONTENTS | |
Page | |
Consolidated Results | |
Summary Financial Data | 3 |
Consolidated Statement of Income | 5 |
Consolidated Balance Sheet | 6 |
Average Balances and Interest Rates (Taxable-Equivalent Basis) | 7 |
Reportable Operating Segment Results | |
Combined Segment Results | 8 |
Consumer Banking and Lending | 9 |
Commercial Banking | 11 |
Corporate and Investment Banking | 13 |
Wealth and Investment Management | 15 |
Corporate | 16 |
Credit-Related Information | |
Consolidated Loans Outstanding - Period-End Balances, Average Balances, and Average Interest Rates | 17 |
Net Loan Charge-offs | 18 |
Changes in Allowance for Credit Losses for Loans | 19 |
Allocation of the Allowance for Credit Losses for Loans | 20 |
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets) | 21 |
Commercial and Industrial Loans and Lease Financing by Industry | 22 |
Commercial Real Estate Loans by Property Type | 23 |
Equity | |
Tangible Common Equity | 24 |
Risk-Based Capital Ratios Under Basel III - Standardized Approach | 26 |
Risk-Based Capital Ratios Under Basel III - Advanced Approach | 27 |
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 March 31, 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 | Mar 31, 2024 | ||||||||
% Change from | |||||||||
(in millions, except ratios and per share amounts) | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||
2024 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | |||
Selected Income Statement Data | |||||||||
Total revenue | $ | 20,863 | 20,478 | 20,857 | 20,533 | 20,729 | 2 % | 1 | |
Noninterest expense | 14,338 | 15,786 | 13,113 | 12,987 | 13,676 | (9) | 5 | ||
Pre-taxpre-provision profit (PTPP) (1) | 6,525 | 4,692 | 7,744 | 7,546 | 7,053 | 39 | (7) | ||
Provision for credit losses (2) | 938 | 1,282 | 1,197 | 1,713 | 1,207 | (27) | (22) | ||
Wells Fargo net income | 4,619 | 3,446 | 5,767 | 4,938 | 4,991 | 34 | (7) | ||
Wells Fargo net income applicable to common stock | 4,313 | 3,160 | 5,450 | 4,659 | 4,713 | 36 | (8) | ||
Common Share Data | |||||||||
Diluted earnings per common share | 1.20 | 0.86 | 1.48 | 1.25 | 1.23 | 40 | (2) | ||
Dividends declared per common share | 0.35 | 0.35 | 0.35 | 0.30 | 0.30 | - | 17 | ||
Common shares outstanding | 3,501.7 | 3,598.9 | 3,637.9 | 3,667.7 | 3,763.2 | (3) | (7) | ||
Average common shares outstanding | 3,560.1 | 3,620.9 | 3,648.8 | 3,699.9 | 3,785.6 | (2) | (6) | ||
Diluted average common shares outstanding | 3,600.1 | 3,657.0 | 3,680.6 | 3,724.9 | 3,818.7 | (2) | (6) | ||
Book value per common share (3) | $ | 46.40 | 46.25 | 44.37 | 43.87 | 43.02 | - | 8 | |
Tangible book value per common share (3)(4) | 39.17 | 39.23 | 37.43 | 36.53 | 35.87 | - | 9 | ||
Selected Equity Data (period-end) | |||||||||
Total equity | 182,674 | 187,443 | 182,373 | 181,952 | 183,220 | (3) | - | ||
Common stockholders' equity | 162,481 | 166,444 | 161,424 | 160,916 | 161,893 | (2) | - | ||
Tangible common equity (4) | 137,163 | 141,193 | 136,153 | 133,990 | 134,992 | (3) | 2 | ||
Performance Ratios | |||||||||
Return on average assets (ROA) (5) | 0.97 % | 0.72 | 1.21 | 1.05 | 1.09 | ||||
Return on average equity (ROE) (6) | 10.5 | 7.6 | 13.3 | 11.4 | 11.7 | ||||
Return on average tangible common equity (ROTCE) (4) | 12.3 | 9.0 | 15.9 | 13.7 | 14.0 | ||||
Efficiency ratio (7) | 69 | 77 | 63 | 63 | 66 | ||||
Net interest margin on a taxable-equivalent basis | 2.81 | 2.92 | 3.03 | 3.09 | 3.20 | ||||
Average deposit cost | 1.74 | 1.58 | 1.36 | 1.13 | 0.83 |
- Pre-taxpre-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.
- Includes provision for credit losses for loans, debt securities, and other financial assets.
- 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.
- 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 24 and 25.
- Represents Wells Fargo net income divided by average assets.
- Represents Wells Fargo net income applicable to common stock divided by average common stockholders' equity.
- The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
-3-
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA (continued)
Quarter ended | Mar 31, 2024 | ||||||||
% Change from | |||||||||
($ in millions, unless otherwise noted) | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||
2024 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | |||
Selected Balance Sheet Data (average) | |||||||||
Loans | $ | 928,075 | 938,041 | 943,193 | 945,906 | 948,651 | (1)% | (2) | |
Assets | 1,916,974 | 1,907,535 | 1,891,883 | 1,878,253 | 1,863,676 | - | 3 | ||
Deposits | 1,341,628 | 1,340,916 | 1,340,307 | 1,347,449 | 1,356,694 | - | (1) | ||
Selected Balance Sheet Data (period-end) | |||||||||
Debt securities | 506,280 | 490,458 | 490,726 | 503,468 | 511,597 | 3 | (1) | ||
Loans | 922,784 | 936,682 | 942,424 | 947,960 | 947,991 | (1) | (3) | ||
Allowance for credit losses for loans | 14,862 | 15,088 | 15,064 | 14,786 | 13,705 | (1) | 8 | ||
Equity securities | 59,556 | 57,336 | 56,026 | 67,471 | 60,610 | 4 | (2) | ||
Assets | 1,959,153 | 1,932,468 | 1,909,261 | 1,876,320 | 1,886,400 | 1 | 4 | ||
Deposits | 1,383,147 | 1,358,173 | 1,354,010 | 1,344,584 | 1,362,629 | 2 | 2 | ||
Headcount (#) (period-end) | 224,824 | 225,869 | 227,363 | 233,834 | 235,591 | - | (5) | ||
Capital and other metrics (1) | |||||||||
Risk-based capital ratios and components (2): | |||||||||
Standardized Approach: | |||||||||
Common Equity Tier 1 (CET1) | 11.2 % | 11.4 | 11.0 | 10.7 | 10.8 | ||||
Tier 1 capital | 12.7 | 13.0 | 12.6 | 12.2 | 12.3 | ||||
Total capital | 15.4 | 15.7 | 15.3 | 15.0 | 15.1 | ||||
Risk-weighted assets (RWAs) (in billions) | $ | 1,220.7 | 1,231.7 | 1,237.1 | 1,250.7 | 1,243.8 | (1) | (2) | |
Advanced Approach: | |||||||||
Common Equity Tier 1 (CET1) | 12.4 % | 12.6 | 12.0 | 12.0 | 12.0 | ||||
Tier 1 capital | 14.1 | 14.3 | 13.7 | 13.7 | 13.7 | ||||
Total capital | 16.2 | 16.4 | 15.8 | 15.8 | 15.9 | ||||
Risk-weighted assets (RWAs) (in billions) | $ | 1,098.6 | 1,114.3 | 1,130.8 | 1,118.4 | 1,117.9 | (1) | (2) | |
Tier 1 leverage ratio | 8.2 % | 8.5 | 8.3 | 8.3 | 8.4 | ||||
Supplementary Leverage Ratio (SLR) | 6.9 | 7.1 | 6.9 | 6.9 | 7.0 | ||||
Total Loss Absorbing Capacity (TLAC) Ratio (3) | 25.1 | 25.0 | 24.0 | 23.1 | 23.3 | ||||
Liquidity Coverage Ratio (LCR) (4) | 126 | 125 | 123 | 123 | 122 |
- Ratios and metrics for March 31, 2024, are preliminary estimates.
- See the tables on pages 26 and 27 for more information on CET1, tier 1 capital, and total capital.
- 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.
- Represents average high-quality liquid assets divided by average projected net cash outflows, as each is defined under the LCR rule.
-4-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
Quarter ended | Mar 31, 2024 | ||||||||
% Change from | |||||||||
(in millions, except per share amounts) | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||
2024 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | |||
Interest income | $ | 22,840 | 22,839 | 22,093 | 20,830 | 19,356 | - % | 18 | |
Interest expense | 10,613 | 10,068 | 8,988 | 7,667 | 6,020 | 5 | 76 | ||
Net interest income | 12,227 | 12,771 | 13,105 | 13,163 | 13,336 | (4) | (8) | ||
Noninterest income | |||||||||
Deposit-related fees | 1,230 | 1,202 | 1,179 | 1,165 | 1,148 | 2 | 7 | ||
Lending-related fees | 367 | 366 | 372 | 352 | 356 | - | 3 | ||
Investment advisory and other asset-based fees | 2,331 | 2,169 | 2,224 | 2,163 | 2,114 | 7 | 10 | ||
Commissions and brokerage services fees | 626 | 619 | 567 | 570 | 619 | 1 | 1 | ||
Investment banking fees | 627 | 455 | 492 | 376 | 326 | 38 | 92 | ||
Card fees | 1,061 | 1,027 | 1,098 | 1,098 | 1,033 | 3 | 3 | ||
Mortgage banking | 230 | 202 | 193 | 202 | 232 | 14 | (1) | ||
Net gains from trading activities | 1,454 | 1,070 | 1,265 | 1,122 | 1,342 | 36 | 8 | ||
Net gains (losses) from debt securities | (25) | - | 6 | 4 | - | NM | NM | ||
Net gains (losses) from equity securities | 18 | 35 | (25) | (94) | (357) | (49) | 105 | ||
Lease income | 421 | 292 | 291 | 307 | 347 | 44 | 21 | ||
Other | 296 | 270 | 90 | 105 | 233 | 10 | 27 | ||
Total noninterest income | 8,636 | 7,707 | 7,752 | 7,370 | 7,393 | 12 | 17 | ||
Total revenue | 20,863 | 20,478 | 20,857 | 20,533 | 20,729 | 2 | 1 | ||
Provision for credit losses (1) | 938 | 1,282 | 1,197 | 1,713 | 1,207 | (27) | (22) | ||
Noninterest expense | |||||||||
Personnel | 9,492 | 9,181 | 8,627 | 8,606 | 9,415 | 3 | 1 | ||
Technology, telecommunications and equipment | 1,053 | 1,076 | 975 | 947 | 922 | (2) | 14 | ||
Occupancy | 714 | 740 | 724 | 707 | 713 | (4) | - | ||
Operating losses | 633 | 355 | 329 | 232 | 267 | 78 | 137 | ||
Professional and outside services | 1,101 | 1,242 | 1,310 | 1,304 | 1,229 | (11) | (10) | ||
Leases (2) | 164 | 168 | 172 | 180 | 177 | (2) | (7) | ||
Advertising and promotion | 197 | 259 | 215 | 184 | 154 | (24) | 28 | ||
Other | 984 | 2,765 | 761 | 827 | 799 | (64) | 23 | ||
Total noninterest expense | 14,338 | 15,786 | 13,113 | 12,987 | 13,676 | (9) | 5 | ||
Income before income tax expense (benefit) | 5,587 | 3,410 | 6,547 | 5,833 | 5,846 | 64 | (4) | ||
Income tax expense (benefit) | 964 | (100) | 811 | 930 | 966 | NM | - | ||
Net income before noncontrolling interests | 4,623 | 3,510 | 5,736 | 4,903 | 4,880 | 32 | (5) | ||
Less: Net income (loss) from noncontrolling interests | 4 | 64 | (31) | (35) | (111) | (94) | 104 | ||
Wells Fargo net income | $ | 4,619 | 3,446 | 5,767 | 4,938 | 4,991 | 34 % | (7) | |
Less: Preferred stock dividends and other | 306 | 286 | 317 | 279 | 278 | 7 | 10 | ||
Wells Fargo net income applicable to common stock | $ | 4,313 | 3,160 | 5,450 | 4,659 | 4,713 | 36 % | (8) | |
Per share information | |||||||||
Earnings per common share | $ | 1.21 | 0.87 | 1.49 | 1.26 | 1.24 | 39 % | (2) | |
Diluted earnings per common share | 1.20 | 0.86 | 1.48 | 1.25 | 1.23 | 40 | (2) |
NM - Not meaningful
- Includes provision for credit losses for loans, debt securities, and other financial assets.
- Represents expenses for assets we lease to customers.
-5-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
Mar 31, 2024 | |||||||||
% Change from | |||||||||
(in millions) | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||
2024 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | |||
Assets | |||||||||
Cash and due from banks | $ | 30,180 | 33,026 | 30,815 | 31,915 | 31,958 | (9)% | (6) | |
Interest-earning deposits with banks | 239,467 | 204,193 | 187,081 | 123,418 | 130,478 | 17 | 84 | ||
Federal funds sold and securities purchased under resale agreements | 68,751 | 80,456 | 70,431 | 66,500 | 67,288 | (15) | 2 | ||
Debt securities: | |||||||||
Trading, at fair value | 109,324 | 97,302 | 97,075 | 96,857 | 90,052 | 12 | 21 | ||
Available-for-sale, at fair value | 138,245 | 130,448 | 126,437 | 134,251 | 144,398 | 6 | (4) | ||
Held-to-maturity, at amortized cost | 258,711 | 262,708 | 267,214 | 272,360 | 277,147 | (2) | (7) | ||
Loans held for sale | 5,473 | 4,936 | 4,308 | 6,029 | 6,199 | 11 | (12) | ||
Loans | 922,784 | 936,682 | 942,424 | 947,960 | 947,991 | (1) | (3) | ||
Allowance for loan losses | (14,421) | (14,606) | (14,554) | (14,258) | (13,120) | 1 | (10) | ||
Net loans | 908,363 | 922,076 | 927,870 | 933,702 | 934,871 | (1) | (3) | ||
Mortgage servicing rights | 8,248 | 8,508 | 9,526 | 9,345 | 9,950 | (3) | (17) | ||
Premises and equipment, net | 9,426 | 9,266 | 8,559 | 8,392 | 8,416 | 2 | 12 | ||
Goodwill | 25,173 | 25,175 | 25,174 | 25,175 | 25,173 | - | - | ||
Derivative assets | 17,653 | 18,223 | 21,096 | 17,990 | 17,117 | (3) | 3 | ||
Equity securities | 59,556 | 57,336 | 56,026 | 67,471 | 60,610 | 4 | (2) | ||
Other assets | 80,583 | 78,815 | 77,649 | 82,915 | 82,743 | 2 | (3) | ||
Total assets | $ | 1,959,153 | 1,932,468 | 1,909,261 | 1,876,320 | 1,886,400 | 1 | 4 | |
Liabilities | |||||||||
Noninterest-bearing deposits | $ | 356,162 | 360,279 | 384,330 | 402,322 | 434,912 | (1) | (18) | |
Interest-bearing deposits | 1,026,985 | 997,894 | 969,680 | 942,262 | 927,717 | 3 | 11 | ||
Total deposits | 1,383,147 | 1,358,173 | 1,354,010 | 1,344,584 | 1,362,629 | 2 | 2 | ||
Short-term borrowings (1) | 109,014 | 89,559 | 93,330 | 84,255 | 81,007 | 22 | 35 | ||
Derivative liabilities | 17,116 | 18,495 | 23,463 | 21,431 | 16,897 | (7) | 1 | ||
Accrued expenses and other liabilities | 79,438 | 71,210 | 66,050 | 73,466 | 69,181 | 12 | 15 | ||
Long-term debt (2) | 187,764 | 207,588 | 190,035 | 170,632 | 173,466 | (10) | 8 | ||
Total liabilities | 1,776,479 | 1,745,025 | 1,726,888 | 1,694,368 | 1,703,180 | 2 | 4 | ||
Equity | |||||||||
Wells Fargo stockholders' equity: | |||||||||
Preferred stock | 18,608 | 19,448 | 19,448 | 19,448 | 19,448 | (4) | (4) | ||
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 | 60,131 | 60,555 | 60,365 | 60,173 | 59,946 | (1) | - | ||
Retained earnings | 203,870 | 201,136 | 199,287 | 195,164 | 191,688 | 1 | 6 | ||
Accumulated other comprehensive income (loss) | (12,546) | (11,580) | (15,877) | (13,441) | (12,572) | (8) | - | ||
Treasury stock (3) | (98,256) | (92,960) | (91,215) | (89,860) | (86,049) | (6) | (14) | ||
Unearned ESOP shares | - | - | (429) | (429) | (429) | NM | 100 | ||
Total Wells Fargo stockholders' equity | 180,943 | 185,735 | 180,715 | 180,191 | 181,168 | (3) | - | ||
Noncontrolling interests | 1,731 | 1,708 | 1,658 | 1,761 | 2,052 | 1 | (16) | ||
Total equity | 182,674 | 187,443 | 182,373 | 181,952 | 183,220 | (3) | - | ||
Total liabilities and equity | $ | 1,959,153 | 1,932,468 | 1,909,261 | 1,876,320 | 1,886,400 | 1 | 4 |
NM - Not meaningful
- Includes $8.0 billion, $0.0 billion, $0.0 billion, $2.0 billion, and $5.0 billion of Federal Home Loan Bank (FHLB) advances at March 31, 2024, and December 31, September 30, June 30, and March 31, 2023, respectively.
- Includes $20.0 billion, $38.0 billion, $36.0 billion, $23.0 billion, and $24.0 billion of FHLB advances at March 31, 2024, and December 31, September 30, June 30, and March 31, 2023, respectively.
- Number of shares of treasury stock were 1,980,132,879, 1,882,948,892, 1,843,884,672, 1,814,145,600, and 1,718,587,875 at March 31, 2024, and December 31, September 30, June 30, and March 31, 2023, respectively.
-6-
Quarter ended | Mar 31, 2024 | ||||||||
% Change from | |||||||||
($ in millions) | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2023 | Mar 31, 2023 | ||
Average Balances | |||||||||
Assets | |||||||||
Interest-earning deposits with banks | $ | 207,568 | 193,647 | 158,893 | 129,236 | 114,858 | 7 % | 81 | |
Federal funds sold and securities purchased under resale agreements | 69,719 | 72,626 | 68,715 | 69,505 | 68,633 | (4) | 2 | ||
Trading debt securities | 112,170 | 109,340 | 109,802 | 102,605 | 96,405 | 3 | 16 | ||
Available-for-sale debt securities | 139,986 | 136,389 | 139,511 | 149,320 | 145,894 | 3 | (4) | ||
Held-to-maturity debt securities | 264,755 | 268,905 | 273,948 | 279,093 | 279,955 | (2) | (5) | ||
Loans held for sale | 5,835 | 4,990 | 5,437 | 6,031 | 6,611 | 17 | (12) | ||
Loans | 928,075 | 938,041 | 943,193 | 945,906 | 948,651 | (1) | (2) | ||
Equity securities | 21,350 | 22,198 | 25,019 | 27,891 | 28,651 | (4) | (25) | ||
Other | 8,940 | 8,861 | 8,565 | 10,118 | 11,043 | 1 | (19) | ||
Total interest-earning assets | 1,758,398 | 1,754,997 | 1,733,083 | 1,719,705 | 1,700,701 | - | 3 | ||
Total noninterest-earning assets | 158,576 | 152,538 | 158,800 | 158,548 | 162,975 | 4 | (3) | ||
Total assets | $ | 1,916,974 | 1,907,535 | 1,891,883 | 1,878,253 | 1,863,676 | - | 3 | |
Liabilities | |||||||||
Interest-bearing deposits | $ | 996,874 | 974,890 | 953,500 | 936,886 | 920,226 | 2 | 8 | |
Short-term borrowings | 94,988 | 92,032 | 90,078 | 83,059 | 58,496 | 3 | 62 | ||
Long-term debt | 197,116 | 196,213 | 181,955 | 170,843 | 172,567 | - | 14 | ||
Other liabilities | 32,821 | 31,342 | 32,564 | 34,496 | 33,427 | 5 | (2) | ||
Total interest-bearing liabilities | 1,321,799 | 1,294,477 | 1,258,097 | 1,225,284 | 1,184,716 | 2 | 12 | ||
Noninterest-bearing deposits | 344,754 | 366,026 | 386,807 | 410,563 | 436,468 | (6) | (21) | ||
Other noninterest-bearing liabilities | 63,752 | 61,179 | 62,151 | 57,963 | 58,195 | 4 | 10 | ||
Total liabilities | 1,730,305 | 1,721,682 | 1,707,055 | 1,693,810 | 1,679,379 | 1 | 3 | ||
Total equity | 186,669 | 185,853 | 184,828 | 184,443 | 184,297 | - | 1 | ||
Total liabilities and equity | $ | 1,916,974 | 1,907,535 | 1,891,883 | 1,878,253 | 1,863,676 | - | 3 | |
Average Interest Rates | |||||||||
Interest-earning assets | |||||||||
Interest-earning deposits with banks | 4.99 % | 4.98 | 4.81 | 4.50 | 4.12 | ||||
Federal funds sold and securities purchased under resale agreements | 5.28 | 5.30 | 5.13 | 4.73 | 4.12 | ||||
Trading debt securities | 4.08 | 3.82 | 3.86 | 3.50 | 3.33 | ||||
Available-for-sale debt securities | 3.99 | 3.87 | 3.92 | 3.72 | 3.54 | ||||
Held-to-maturity debt securities | 2.70 | 2.69 | 2.65 | 2.62 | 2.55 | ||||
Loans held for sale | 7.82 | 6.75 | 6.40 | 6.22 | 5.90 | ||||
Loans | 6.38 | 6.35 | 6.23 | 5.99 | 5.69 | ||||
Equity securities | 2.82 | 2.99 | 2.42 | 2.79 | 2.39 | ||||
Other | 5.14 | 4.99 | 4.93 | 4.76 | 4.60 | ||||
Total interest-earning assets | 5.24 | 5.20 | 5.09 | 4.88 | 4.62 | ||||
Interest-bearing liabilities | |||||||||
Interest-bearing deposits | 2.34 | 2.17 | 1.92 | 1.63 | 1.22 | ||||
Short-term borrowings | 5.16 | 5.10 | 4.99 | 4.64 | 3.95 | ||||
Long-term debt | 6.80 | 6.78 | 6.67 | 6.31 | 5.83 | ||||
Other liabilities | 2.88 | 2.87 | 2.54 | 2.41 | 2.16 | ||||
Total interest-bearing liabilities | 3.22 | 3.09 | 2.84 | 2.51 | 2.05 | ||||
Interest rate spread on a taxable-equivalent basis (2) | 2.02 | 2.11 | 2.25 | 2.37 | 2.57 | ||||
Net interest margin on a taxable-equivalent basis (2) | 2.81 | 2.92 | 3.03 | 3.09 | 3.20 |
- 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.
- Includes taxable-equivalent adjustments of $89 million, $104 million, $104 million, $105 million, and $107 million for the quarters ended March 31, 2024, and December 31, September 30, June 30, and March 31, 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.
-7-
Wells Fargo & Company and Subsidiaries
COMBINED SEGMENT RESULTS (1)
Quarter ended March 31, 2024 | ||||||||
Consumer | Commercial | Corporate and | Wealth and | Reconciling | Consolidated | |||
(in millions) | Banking and | Investment | Investment | Corporate (2) | ||||
Lending | Banking | Banking | Management | Items (3) | Company | |||
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 December 31, 2023 | ||||||||
Net interest income | $ | 7,629 | 2,525 | 2,359 | 906 | (544) | (104) | 12,771 |
Noninterest income | 1,890 | 843 | 2,376 | 2,754 | 284 | (440) | 7,707 | |
Total revenue | 9,519 | 3,368 | 4,735 | 3,660 | (260) | (544) | 20,478 | |
Provision for credit losses | 790 | 40 | 498 | (19) | (27) | - | 1,282 | |
Noninterest expense | 6,046 | 1,630 | 2,132 | 3,023 | 2,955 | - | 15,786 | |
Income (loss) before income tax expense (benefit) | 2,683 | 1,698 | 2,105 | 656 | (3,188) | (544) | 3,410 | |
Income tax expense (benefit) | 672 | 423 | 523 | 165 | (1,339) | (544) | (100) | |
Net income (loss) before noncontrolling interests | 2,011 | 1,275 | 1,582 | 491 | (1,849) | - | 3,510 | |
Less: Net income from noncontrolling interests | - | 2 | - | - | 62 | - | 64 | |
Net income (loss) | $ | 2,011 | 1,273 | 1,582 | 491 | (1,911) | - | 3,446 |
Quarter ended March 31, 2023 | ||||||||
Net interest income | $ | 7,433 | 2,489 | 2,461 | 1,044 | 16 | (107) | 13,336 |
Noninterest income | 1,931 | 818 | 2,441 | 2,637 | 5 | (439) | 7,393 | |
Total revenue | 9,364 | 3,307 | 4,902 | 3,681 | 21 | (546) | 20,729 | |
Provision for credit losses | 867 | (43) | 252 | 11 | 120 | - | 1,207 | |
Noninterest expense | 6,038 | 1,752 | 2,217 | 3,061 | 608 | - | 13,676 | |
Income (loss) before income tax expense (benefit) | 2,459 | 1,598 | 2,433 | 609 | (707) | (546) | 5,846 | |
Income tax expense (benefit) | 618 | 399 | 615 | 152 | (272) | (546) | 966 | |
Net income (loss) before noncontrolling interests | 1,841 | 1,199 | 1,818 | 457 | (435) | - | 4,880 | |
Less: Net income (loss) from noncontrolling interests | - | 3 | - | - | (114) | - | (111) | |
Net income (loss) | $ | 1,841 | 1,196 | 1,818 | 457 | (321) | - | 4,991 |
- 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.
- 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.
- Taxable-equivalentadjustments 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 low-income 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.
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Wells Fargo & Company and Subsidiaries
CONSUMER BANKING AND LENDING SEGMENT
Quarter ended | Mar 31, 2024 | ||||||||
% Change from | |||||||||
($ in millions) | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||
2024 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | |||
Income Statement | |||||||||
Net interest income | $ | 7,110 | 7,629 | 7,633 | 7,490 | 7,433 | (7)% | (4) | |
Noninterest income: | |||||||||
Deposit-related fees | 677 | 694 | 670 | 666 | 672 | (2) | 1 | ||
Card fees | 990 | 960 | 1,027 | 1,022 | 958 | 3 | 3 | ||
Mortgage banking | 193 | 115 | 105 | 132 | 160 | 68 | 21 | ||
Other | 121 | 121 | 146 | 145 | 141 | - | (14) | ||
Total noninterest income | 1,981 | 1,890 | 1,948 | 1,965 | 1,931 | 5 | 3 | ||
Total revenue | 9,091 | 9,519 | 9,581 | 9,455 | 9,364 | (4) | (3) | ||
Net charge-offs | 881 | 852 | 722 | 621 | 589 | 3 | 50 | ||
Change in the allowance for credit losses | (93) | (62) | 46 | 253 | 278 | (50) | NM | ||
Provision for credit losses | 788 | 790 | 768 | 874 | 867 | - | (9) | ||
Noninterest expense | 6,024 | 6,046 | 5,913 | 6,027 | 6,038 | - | - | ||
Income before income tax expense | 2,279 | 2,683 | 2,900 | 2,554 | 2,459 | (15) | (7) | ||
Income tax expense | 573 | 672 | 727 | 640 | 618 | (15) | (7) | ||
Net income | $ | 1,706 | 2,011 | 2,173 | 1,914 | 1,841 | (15) | (7) | |
Revenue by Line of Business | |||||||||
Consumer, Small and Business Banking (1) | $ | 6,092 | 6,554 | 6,546 | 6,448 | 6,374 | (7) | (4) | |
Consumer Lending: | |||||||||
Home Lending | 864 | 839 | 840 | 847 | 863 | 3 | - | ||
Credit Card (1) | 1,496 | 1,449 | 1,494 | 1,449 | 1,417 | 3 | 6 | ||
Auto | 300 | 334 | 360 | 378 | 392 | (10) | (23) | ||
Personal Lending | 339 | 343 | 341 | 333 | 318 | (1) | 7 | ||
Total revenue | $ | 9,091 | 9,519 | 9,581 | 9,455 | 9,364 | (4) | (3) | |
Selected Balance Sheet Data (average) | |||||||||
Loans by Line of Business: | |||||||||
Consumer, Small and Business Banking (1) | $ | 6,465 | 6,494 | 6,610 | 6,831 | 7,037 | - | (8) | |
Consumer Lending: | |||||||||
Home Lending | 214,335 | 216,733 | 218,546 | 220,641 | 222,561 | (1) | (4) | ||
Credit Card (1) | 46,412 | 45,842 | 43,541 | 41,609 | 40,516 | 1 | 15 | ||
Auto | 47,621 | 49,078 | 51,578 | 52,476 | 53,676 | (3) | (11) | ||
Personal Lending | 14,896 | 15,386 | 15,270 | 14,794 | 14,518 | (3) | 3 | ||
Total loans | $ | 329,729 | 333,533 | 335,545 | 336,351 | 338,308 | (1) | (3) | |
Total deposits | 773,248 | 779,490 | 801,061 | 823,339 | 841,265 | (1) | (8) | ||
Allocated capital | 45,500 | 44,000 | 44,000 | 44,000 | 44,000 | 3 | 3 | ||
Selected Balance Sheet Data (period-end) | |||||||||
Loans by Line of Business: | |||||||||
Consumer, Small and Business Banking (1) | $ | 6,584 | 6,735 | 6,746 | 6,937 | 7,111 | (2) | (7) | |
Consumer Lending: | |||||||||
Home Lending | 213,289 | 215,823 | 217,955 | 219,595 | 222,012 | (1) | (4) | ||
Credit Card (1) | 46,867 | 46,735 | 44,409 | 42,415 | 40,547 | - | 16 | ||
Auto | 46,692 | 48,283 | 50,407 | 52,175 | 53,244 | (3) | (12) | ||
Personal Lending | 14,575 | 15,291 | 15,439 | 15,095 | 14,597 | (5) | - | ||
Total loans | $ | 328,007 | 332,867 | 334,956 | 336,217 | 337,511 | (1) | (3) | |
Total deposits | 794,160 | 782,309 | 798,897 | 820,495 | 851,304 | 2 | (7) |
NM - Not meaningful
- In first quarter 2024, we transferred our small business credit card business from Consumer, Small and Business Banking to Credit Card. Prior period balances have been revised to conform with the current period presentation.
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Wells Fargo & Company and Subsidiaries
CONSUMER BANKING AND LENDING SEGMENT (continued)
Quarter ended | Mar 31, 2024 | ||||||||
% Change from | |||||||||
($ in millions, unless otherwise noted) | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||
2024 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | |||
Selected Metrics | |||||||||
Consumer Banking and Lending: | |||||||||
Return on allocated capital (1) | 14.5 % | 17.6 | 19.1 | 16.9 | 16.5 | ||||
Efficiency ratio (2) | 66 | 64 | 62 | 64 | 64 | (1)% | (6) | ||
Retail bank branches (#, period-end) | 4,247 | 4,311 | 4,355 | 4,455 | 4,525 | ||||
Digital active customers (# in millions, period-end) (3) | 35.5 | 34.8 | 34.6 | 34.2 | 34.3 | 2 | 3 | ||
Mobile active customers (# in millions, period-end) (3) | 30.5 | 29.9 | 29.6 | 29.1 | 28.8 | 2 | 6 | ||
Consumer, Small and Business Banking: | |||||||||
Deposit spread (4) | 2.5 % | 2.7 | 2.7 | 2.6 | 2.5 | (4) | 4 | ||
Debit card purchase volume ($ in billions) (5) | $ | 121.5 | 126.1 | 124.5 | 124.9 | 117.3 | |||
Debit card purchase transactions (# in millions) (5) | 2,442 | 2,546 | 2,550 | 2,535 | 2,369 | (4) | 3 | ||
Home Lending: | |||||||||
Mortgage banking: | |||||||||
Net servicing income | $ | 91 | 113 | 41 | 62 | 84 | (19) | 8 | |
Net gains on mortgage loan originations/sales | 102 | 2 | 64 | 70 | 76 | NM | 34 | ||
Total mortgage banking | $ | 193 | 115 | 105 | 132 | 160 | 68 | 21 | |
Retail originations ($ in billions) | $ | 3.5 | 4.5 | 6.4 | 7.7 | 5.6 | (22) | (38) | |
% of originations held for sale (HFS) | 43.5 % | 45.4 | 40.7 | 45.3 | 46.8 | (6) | (21) | ||
Third party mortgage loans serviced ($ in billions, period-end) (6) | $ | 527.5 | 559.7 | 591.8 | 609.1 | 666.8 | |||
Mortgage servicing rights (MSR) carrying value (period-end) | 7,249 | 7,468 | 8,457 | 8,251 | 8,819 | (3) | (18) | ||
Ratio of MSR carrying value (period-end) to third party mortgage loans serviced (period-end) (6) | 1.37 % | 1.33 | 1.43 | 1.35 | 1.32 | ||||
Home lending loans 30+ days delinquency rate (period-end) (7)(8)(9) | 0.30 | 0.32 | 0.29 | 0.25 | 0.26 | ||||
Credit Card (10): | (5) | 14 | |||||||
Point of sale (POS) volume ($ in billions) | $ | 39.1 | 41.2 | 39.4 | 38.3 | 34.2 | |||
New accounts (# in thousands) | 651 | 655 | 714 | 618 | 579 | (1) | 12 | ||
Credit card loans 30+ days delinquency rate (period-end) (8)(9) | 2.92 % | 2.80 | 2.61 | 2.31 | 2.18 | ||||
Credit card loans 90+ days delinquency rate (period-end) (8)(9) | 1.55 | 1.41 | 1.29 | 1.10 | 1.09 | ||||
Auto: | 24 | (18) | |||||||
Auto originations ($ in billions) | $ | 4.1 | 3.3 | 4.1 | 4.8 | 5.0 | |||
Auto loans 30+ days delinquency rate (period-end) (8)(9) | 2.36 % | 2.80 | 2.60 | 2.55 | 2.25 | ||||
Personal Lending: | |||||||||
New volume ($ in billions) | $ | 2.2 | 2.6 | 3.1 | 3.3 | 2.9 | (15) | (24) |
NM - Not meaningful
- 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.
- Efficiency ratio is segment noninterest expense divided by segment total revenue (net interest income and noninterest income).
- 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.
- 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.
- Debit card purchase volume and transactions reflect combined activity for both consumer and business debit card purchases.
- Excludes residential mortgage loans subserviced for others.
- Excludes residential mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).
- Excludes loans held for sale.
- Delinquency balances exclude nonaccrual loans.
- In first quarter 2024, we transferred our small business credit card business from Consumer, Small and Business Banking to Credit Card. Prior period balances have been revised to conform with the current period presentation.
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Wells Fargo & Company published this content on 11 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 11:19:03 UTC.