Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Q1 2022 Earnings Presentation
18 slides from Wells Fargo &'s earnings presentation, Apr 14, 2022
Slide 1: 1Q22 Financial Results
1Q22 Financial Results April 14, 2022 © 2022 Wells Fargo Bank, N.A. All rights reserved.
Slide 2: 1Q22 results
1Q22 results • Net income of $3.7 billion, or $0.88 per diluted common share, which included a $0.21 per diluted common share impact from the decrease in the allowance for credit losses – Revenue of $17.6 billion, down 5% ◦ Mortgage banking noninterest income of $693 million, down from $1.3 billion
Slide 3: Capital
Capital 1 Common Equity Tier 1 Ratio under the Standardized Approach Capital Position 1 12.1% • Common Equity Tier 1 (CET1) ratio of 10.5% at March 31, 2022 remained above 11.8% 11.6% 11.4% our regulatory minimum of 9.1% 10.5% • CET1 ratio down 130 bps from 1Q21 and down 90 bps from 4Q21 and reflect
Slide 4: 1Q22 earnings
1Q22 earnings $ in millions (mm), except per share data 1Q22 4Q21 1Q21 vs. 4Q21 vs. 1Q21 Net interest income $9,221 9,262 8,808 ($41) 413 Noninterest income 8,371 11,594 9,724 (3,223) (1,353) Total revenue 17,592 20,856 18,532 (3,264) (940) Net charge-offs 305 423 523 (118) (218) Change in the allow
Slide 5: Credit quality
Credit quality Provision for Credit Losses and Net Charge-offs ($ in millions) Allowance for Credit Losses for Loans ($ in millions) 523 18,043 379 423 16,391 305 7,361 257 14,705 6,821 13,788 0.24% 12,681 0.18% 0.19% 6,140 2.09% 5,997 0.12% 0.14% 1.92% 5,533 (452) 10,682 1.70% 9,570 1.54% (787) 1.3
Slide 6: Loans and deposits
Loans and deposits Average Loans Outstanding ($ in billions) Average Deposits and Rates ($ in billions) 898.0 1,435.8 1,450.9 1,470.0 1,464.1 873.4 854.7 854.0 875.0 1,393.5 27.1 41.7 37.3 34.9 46.5 180.9 185.8 175.0 176.6 Corporate 173.7 381.9 189.4 182.1 169.2 Wealth and 396.8 377.7 375.9 379.5 19
Slide 7: Net interest income
Net interest income Net Interest Income ($ in millions) • Net interest income up $413 million, or 5%, from 1Q21 primarily due to lower mortgage-backed securities premium amortization, a decrease in 9,262 9,221 long-term debt, and higher loan balances, partially offset by lower interest 8,808 8,800 8
Slide 8: Noninterest expense
Noninterest expense Noninterest Expense ($ in millions) • Noninterest expense down 1% from 1Q21 – Personnel expense down 3% on lower salaries expense primarily reflecting 13,989 13,870 104 13,341 13,303 13,198 efficiency initiatives and divestitures 79 – Non-personnel expense up $168 million, or 4%,
Slide 9: Consumer Banking and Lending
Consumer Banking and Lending Summary Financials • Total revenue down 1% YoY and down 2% from 4Q21 $ in millions (mm) 1Q22 vs. 4Q21 vs. 1Q21 – CSBB up 11% YoY primarily due to higher deposit balances, higher deposit- Revenue by line of business: related fees primarily reflecting lower fee waivers, an
Slide 10: Consumer Banking and Lending
Consumer Banking and Lending 1 Mortgage Loan Originations ($ in billions) Debit Card Point of Sale (POS) Volume and Transactions 51.8 53.2 51.9 122.0 122.4 118.6 115.0 48.1 108.5 18.2 16.3 16.7 15.3 37.9 2.3 2.5 2.5 2.5 2.3 55% 55% 13.8 64% 59% 56% 33.6 36.9 35.2 32.8 24.1 1Q21 2Q21 3Q21 4Q21 1Q22 1
Slide 11: Commercial Banking
Commercial Banking Summary Financials • Total revenue up 12% YoY and up 2% from 4Q21 $ in millions 1Q22 vs. 4Q21 vs. 1Q21 – Middle Market Banking revenue up 8% YoY on higher deposit and loan balances, Revenue by line of business: as well as the impact of higher interest rates Middle Market Banking $
Slide 12: Corporate and Investment Banking
Corporate and Investment Banking Summary Financials • Total revenue down 4% YoY and down 1% from 4Q21 $ in millions 1Q22 vs. 4Q21 vs. 1Q21 Revenue by line of business: – Banking revenue up 4% YoY and down 5% from 4Q21 on lower Investment Banking fees resulting from lower market activity, and improve
Slide 13: Wealth and Investment Management
Wealth and Investment Management Summary Financials • Total revenue up 6% YoY $ in millions 1Q22 vs. 4Q21 vs. 1Q21 – Net interest income up 22% YoY driven by the impact of higher interest rates, Net interest income $799 $133 142 as well as higher deposit and loan balances Noninterest income 2,958 (2
Slide 14: Corporate
Corporate Summary Financials • Net interest income down YoY primarily due to higher deposit crediting rates $ in millions 1Q22 vs. 4Q21 vs. 1Q21 paid to the operating segments, and the sales of our student loan portfolio Net interest income ($818) ($398) (428) and our Corporate Trust Services busine
Slide 15: Appendix
Appendix
Slide 16: Tangible Common Equity
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 int
Slide 17: Common Equity Tier 1 under Basel III
Common Equity Tier 1 under Basel III Wells Fargo & Company and Subsidiaries RISK-BASED CAPITAL RATIOS UNDER BASEL III (1) Estimated Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (in billions, except ratio) 2022 2021 2021 2021 2021 Total equity (2) $ 181.7 190.1 191.1 193.1 188.0 Effect of accounting polic
Slide 18: Disclaimer and forward-looking statements
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 March 31, 2022, and may differ materially from the results and disclosures
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