Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Q3 2022 Earnings Presentation
18 slides from Wells Fargo &'s earnings presentation, Oct 14, 2022
Slide 1: 3Q22 Financial Results
3Q22 Financial Results October 14, 2022 © 2022 Wells Fargo Bank, N.A. All rights reserved.
Slide 2: 3Q22 results
3Q22 results • Net income of $3.5 billion, or $0.85 per diluted common share, included $(2.0) billion, or $(0.45) per share, of accruals primarily related to a variety of historical matters, including litigation, customer remediation, and regulatory matters • Revenue of $19.5 billion, up 4% on stron
Slide 3: Capital
Capital 1 Common Equity Tier 1 Ratio under the Standardized Approach Capital Position 1 • Common Equity Tier 1 (CET1) ratio of 10.3% at September 30, 2022 remained 2 above our regulatory minimum and buffers of 9.1% 11.6% 11.4% • CET1 ratio down ~130 bps from 3Q21 and down ~10 bps from 2Q22 and 10.5%
Slide 4: 3Q22 earnings
3Q22 earnings $ in millions (mm), except per share data 3Q22 2Q22 3Q21 vs. 2Q22 vs. 3Q21 Net interest income $12,098 10,198 8,909 $1,900 3,189 Noninterest income 7,407 6,830 9,925 577 (2,518) Total revenue 19,505 17,028 18,834 2,477 671 Net charge-offs 399 345 257 54 142 Change in the allowance for
Slide 5: Credit quality
Credit quality Provision for Credit Losses and Net Charge-offs ($ in millions) Allowance for Credit Losses for Loans ($ in millions) 423 399 305 345 257 784 14,705 580 13,788 12,681 12,884 13,225 0.12% 0.19% 0.17% 6,140 0.14% 0.15% 5,997 6,234 5,533 5,802 (452) 1.70% (787) 1.54% 1.39% 1.37% 1.40% 8,
Slide 6: Loans and deposits
Loans and deposits Average Loans Outstanding ($ in billions) Average Deposits and Rates ($ in billions) 1,450.9 1,470.0 1,464.1 1,445.8 926.6 945.5 34.9 27.1 1,407.9 898.0 37.3 20.3 24.4 854.0 875.0 176.6 180.9 185.8 173.7 158.4 Corporate 189.4 182.1 169.2 164.9 156.8 389.1 394.3 Wealth and 379.5 38
Slide 7: Net interest income
Net interest income Net Interest Income ($ in millions) • Net interest income up $3.2 billion, or 36%, from 3Q21 primarily due to the impact of higher interest rates, higher loan balances, and lower mortgage- 12,098 backed securities (MBS) premium amortization, partially offset by lower interest inc
Slide 8: Noninterest expense
Noninterest expense Noninterest Expense ($ in millions) • Noninterest expense up $1.0 billion, or 8%, from 3Q21 14,327 YoY % Change – Operating losses up $1.7 billion reflecting higher accruals primarily related to a 13,870 13,303 13,198 12,883 variety of historical matters, including litigation, cu
Slide 9: Consumer Banking and Lending
Consumer Banking and Lending Summary Financials • Total revenue up 5% YoY and up 9% from 2Q22 $ in millions (mm) 3Q22 vs. 2Q22 vs. 3Q21 – CSBB up 29% YoY driven by the impact of higher interest rates and higher deposit balances; up 13% from 2Q22 as higher net interest income was Revenue by line of b
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 51.9 48.1 125.2 16.7 118.6 122.4 122.4 115.0 15.3 37.9 34.1 59% 13.8 2.5 2.5 55% 14.5 2.5 2.5 21.5 2.3 56% 28% 35.2 32.8 9.1 24.1 16% 19.6 12.4 3Q21 4Q21 1Q22 2Q22 3Q22 3Q
Slide 11: Commercial Banking
Commercial Banking Summary Financials • Total revenue up 42% YoY and up 18% from 2Q22 $ in millions 3Q22 vs. 2Q22 vs. 3Q21 – Middle Market Banking revenue up 54% YoY primarily due to the impact of Revenue by line of business: higher interest rates and higher loan balances, partially offset by lower
Slide 12: Corporate and Investment Banking
Corporate and Investment Banking Summary Financials • Total revenue up 20% YoY and up 14% from 2Q22 $ in millions 3Q22 vs. 2Q22 vs. 3Q21 Revenue by line of business: – Banking revenue up 28% YoY driven by stronger treasury management results due to the impact of higher interest rates and higher loan
Slide 13: Wealth and Investment Management
Wealth and Investment Management Summary Financials • Total revenue up 1% YoY and down 1% from 2Q22 $ in millions 3Q22 vs. 2Q22 vs. 3Q21 – Net interest income up 71% YoY and up 19% from 2Q22 predominantly driven Net interest income $1,088 $172 451 by the impact of higher interest rates Noninterest i
Slide 14: Corporate
Corporate Summary Financials • Net interest income up YoY due to the impact of higher interest rates $ in millions 3Q22 vs. 2Q22 vs. 3Q21 – Business divestitures in 2021 accounted for $35 million of net interest Net interest income ($248) $371 179 income in 3Q21 Noninterest income 284 398 (1,468) •
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) 2022 2022 2022 2021 2021 Total equity $ 178.4 179.8 181.7 190.1 191.1 Adjustments: Preferred stock (
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, 2022, and may differ materially from the results and disclosu
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