Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Q3 2021 Earnings Presentation
18 slides from Wells Fargo &'s earnings presentation, Oct 14, 2021
Slide 1: 3Q21 Financial Results
3Q21 Financial Results October 14, 2021 © 2021 Wells Fargo Bank, N.A. All rights reserved.
Slide 2: Actively helping our customers and communities
Actively helping our customers and communities Clear Access Banking and Overdraft Rewind Taking Additional Actions to Support Our Communities • Over 1 million customer accounts now benefiting from Clear Access Banking, our • Charitable Donations: $496 million in donations expense during the first ni
Slide 3: 3Q21 results
3Q21 results • Net income of $5.1 billion, or $1.17 per diluted common share – Revenue of $18.8 billion, down 2% – Noninterest expense of $13.3 billion, down 13% – Results included: Financial Results ($ in millions, except EPS) Pre-tax Income EPS ROE: 11.1% Change in the allowance for credit losses
Slide 4: 3Q21 earnings
3Q21 earnings $ in millions (mm), except per share data 3Q21 2Q21 3Q20 vs. 2Q21 vs. 3Q20 Net interest income $8,909 8,800 9,379 $109 (470) Noninterest income 9,925 11,470 9,937 (1,545) (12) Total revenue 18,834 20,270 19,316 (1,436) (482) Net charge-offs 257 379 731 (122) (474) Change in the allowan
Slide 5: Credit quality
Credit quality Provision for Credit Losses and Net Charge-offs ($ in millions) Allowance for Credit Losses for Loans ($ in millions) 20,471 769 731 19,713 584 8,929 18,043 523 8,197 16,391 379 7,361 14,705 0.29% 257 6,821 0.26% 0.24% 0.18% 2.22% 2.22% 2.09% 6,140 1.92% 0.12% 1.70% 11,542 11,516 10,6
Slide 6: Average loans and deposits
Average loans and deposits Average Loans Outstanding ($ in billions) Average Deposits and Rates ($ in billions) 931.7 1,435.8 1,450.9 899.7 1,399.0 1,380.1 1,393.5 37.3 873.4 41.7 854.7 854.0 68.0 56.4 46.5 175.0 176.6 169.4 169.8 173.7 Corporate 190.8 189.4 434.0 194.5 Wealth and 423.2 396.8 226.1
Slide 7: Net interest income
Net interest income Net Interest Income ($ in millions) • Net interest income decreased $470 million, or 5%, YoY reflecting the impact of lower loan balances due to soft demand and elevated 9,379 9,355 prepayments, and the impact of lower yields on earning assets, partially 8,808 8,800 8,909 offset
Slide 8: Noninterest expense
Noninterest expense Noninterest Expense ($ in millions) • 3Q21 noninterest expense included a $250 million operating loss associated 15,229 14,802 with the September 2021 OCC enforcement action 13,989 13,341 13,303 • Noninterest expense down 13% from 3Q20 104 4,668 4,452 79 – Personnel expense up 1%
Slide 9: Consumer Banking and Lending
Consumer Banking and Lending Summary Financials • Total revenue down 4% YoY and up 1% from 2Q21 $ in millions (mm) 3Q21 vs. 2Q21 vs. 3Q20 – CSBB up 2% YoY primarily due to an increase in consumer activity, including higher debit card transactions, and lower COVID-19-related fee waivers; up 2% Revenu
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 61.6 28.8 53.9 51.8 53.2 51.9 122.0 118.6 21.6 16.3 105.3 108.5 18.2 16.7 102.9 2.3 2.3 2.5 2.5 2.3 52% 64% 55% 55% 51% 32.8 33.6 36.9 35.2 32.3 3Q20 4Q20 1Q21 2Q21 3Q21 3
Slide 11: Commercial Banking
Commercial Banking Summary Financials • Total revenue down 7% YoY and down 2% from 2Q21 $ in millions 3Q21 vs. 2Q21 vs. 3Q20 – Middle Market Banking revenue down 3% YoY primarily due to lower loan Revenue by line of business: balances on reduced client demand and line utilization, as well as the imp
Slide 12: Corporate and Investment Banking
Corporate and Investment Banking Summary Financials • Total revenue up 2% YoY and up 1% from 2Q21 $ in millions 3Q21 vs. 2Q21 vs. 3Q20 Revenue by line of business: – Banking revenue up 12% YoY on higher advisory and equity origination fees, and higher loan balances, partially offset by lower deposit
Slide 13: Wealth and Investment Management
Wealth and Investment Management Summary Financials • Total revenue up 10% YoY $ in millions 3Q21 vs. 2Q21 vs. 3Q20 – Net interest income down 11% YoY driven by the impact of lower interest Net interest income $637 $27 (80) rates, partially offset by higher deposit and loan balances Noninterest inco
Slide 14: Corporate
Corporate Summary Financials • Net interest income down YoY primarily due to lower loan balances due to $ in millions 3Q21 vs. 2Q21 vs. 3Q20 the sale of our student loan portfolio Net interest income ($427) ($123) (159) • Noninterest income down YoY on lower gains on the sale of securities in our No
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 Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, (in billions, except ratio) 2021 2021 2021 2020 2020 Total equity (2) $ 191.1 193.1 188.0 185.7 181.7 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 September 30, 2021, and may differ materially from the results and disclosu
Wells Fargo & Company — Q3 2021 Earnings Presentation on 6ix