Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Investor Presentation (May 2009)
13 slides from Wells Fargo &'s investor presentation, May 7, 2009
Slide 1: Wells Fargo Equity Offering
Wells Fargo Equity Offering Dick Kovacevich, Chairman John Stumpf, CEO Howard Atkins, CFO Together we'll go far May 7, 2009 SA ogg oh cs oa
Slide 2: Cautionary Statement About Forward-Looking Statements
Cautionary Statement About Forward-Looking Statements In accordance with the Private Securities Litigation Reform Act of 1995, we caution you that this presentation contains forward-looking statements about our future financial results and condition, including statements about our future capital sou
Slide 3: Wells Fargo Equity Offering Overview
Wells Fargo Equity Offering Overview Issuer: Ticker / Exchange: Offering size Over-allotmen Share composition: Wells Fargo & Company WFC / NYSE 100% primary Stock price (as of 5/6/09): ‘Shares outstanding (pre-offer as of 4/30/09): Market cap (as of 5/6/09): Joint bookrunners: Expected pricing: Use
Slide 4: Wells Fargo + Wachovia
Wells Fargo + Wachovia Leading provider of financial Over 40 million households services to U.S. population served, 1 in 3 U.S. households One of the America’s best 24th Fortune 500 Rank“) companies Keeping credit flowing More than $700 billion of credit extended since start of the credit crisis (2)
Slide 5: Observations on SCAP Assessment
Observations on SCAP Assessment = Tier 1 Capital sufficient in Adverse Scenario = Additional Tier 1 Common buffer of $13.7 billion by November 9, 2009 = Fed’s and Wells Fargo’s assessment of credit losses in Adverse Scenario are similar = Fed estimate of Wells Fargo’s pre-provision net revenue (PPNR
Slide 6: Capital Plan Provides Substantial Financial Flexibility
Capital Plan Provides Substantial Financial Flexibility = Plan to achieve $13.7 billion additional capital buffer ~ $6 billion common offering - We estimate additional $7.7 billion Tier 1 Common required by November 9, 2009 will be met via: > Pre-tax pre-provision earnings > Other internal capital g
Slide 7: Wachovia Merger — On Track
Wachovia Merger — On Track Initiative De-Risk Balance Sheet Annual Expense Reduction Merger Costs Revenue Synergies Wachovia Deposit Run-Off What We Said Then Estimated credit write-downs of $39 billion assumed for impairment Assumed $20 billion credit write-downs on remaining portfolio 20% decline
Slide 8: 1Q 2009 Summary
1Q 2009 Summary = Record net income $3.05 billion = Record legacy Wells Fargo revenue +16% = Wachovia revenue contribution 41% = Record pre-tax pre-provision profit $9.2 billion = Highest net interest margin among large bank peers 4.16% ws Significant credit extended to U.S. taxpayers $225 billion =
Slide 9: Pre-Tax Pre-Provision Profits: Consistent Growth
Pre-Tax Pre-Provision Profits: Consistent Growth ($ in billions) = 2003 - 2008 CAGR = 11% $19.2 $16.6 14.9 oHiccs: 4125 $13.9 ; = $9.2 billion in $11.2 - pre-tax pre-provision profits in 1Q09 2003 2004 2005 2006 2007 2008 = Strong momentum building across diversified businesses - Record earnings pow
Slide 10: Earnings Momentum
Earnings Momentum = Net new checking accounts up 6.2% = 31% growth (annualized) in consumer checking and savings accounts = Unclosed mortgage pipeline of $100 billion at end of 1Q09 up 41% = $2.1 trillion in mortgage servicing — most “in the money” = $30 billion mortgage securities purchased = Expen
Slide 11: Allowance for Credit Losses
Allowance for Credit Losses Allowance for credit losses as a percentage of total loans 2.91% 2.69% 1Q08 2Q08 3Q08 4Q08 1909 ‘Excluding loans acquired from Wachovia accounted for under SOP 03-3, the 4908 and 1009 allowance/non-impaired loans was 2.69% and 2.91% respectively. 1Q09 Allowance for Loan L
Slide 12: Major Milestones Since Wachovia Merger
Major Milestones Since Wachovia Merger = Merger announced on October 3, 2008 Participated in US Treasury TARP Capital Purchase Program - $25 billion in added Tier 1 Capital $12.6 billion common equity raise Strengthened balance sheet - $40 billion of credit write-downs taken through purchase account
Slide 13: Summary
Ss umma: Record pre-tax pre-provision profits of $9.2 billion in 1Q09 Momentum into 2Q strong - Loans, deposits, mortgage banking, NIM and efficiency Powered by diversified revenue generating capacity of Wells Fargo Outstanding franchise — everything we thought it would be Financial contribution exc