Wells Fargo & Company · NYSE:WFC

Wells Fargo & — Q4 2015 Earnings Presentation

28 slides from Wells Fargo &'s earnings presentation, Jan 15, 2016

  1. Slide 1: 4Q15 Quarterly Supplement

    4Q15 Quarterly Supplement January 15, 2016 © 2016 Wells Fargo & Company. All rights reserved. Exhibit 99.2

  2. Slide 2: Table of contents

    Wells Fargo 4Q15 Supplement 1  Appendix Pages 19-27 - Recent transactions update 20 - Real estate 1-4 family first mortgage portfolio 21 - Real estate 1-4 family junior lien mortgage portfolio 22 - Consumer credit card portfolio 23 - Auto portfolios 24 - Student lending portfolio 25  Common Equity

  3. Slide 3: 4Q15 Highlights

    Wells Fargo 4Q15 Supplement 2 4Q15 Highlights  Earnings of $5.7 billion  Diluted earnings per common share of $1.03  Revenue up 1% year-over-year (YoY) and down 1% linked quarter (LQ) - Net interest income up 4% YoY and 1% LQ - Noninterest income down 3% YoY and 4% LQ  Strong loan and deposit gr

  4. Slide 4: Year-over-year results

    Wells Fargo 4Q15 Supplement 3 23.1 23.0 2014 2015 Year-over-year results Pre-tax Pre-provision Profit (1) ($ in billions) Net Income ($ in billions, except EPS) Diluted earnings per common share Period-end Loans ($ in billions) Period-end Deposits ($ in billions) Revenue ($ in billions) (1) Pre-tax

  5. Slide 5: Balance Sheet and credit overview (linked quarter)

    Wells Fargo 4Q15 Supplement 4 Balance Sheet and credit overview (linked quarter) Loans  Core loans (1) increased $15.4 billion on broad-based organic growth  Non-strategic/liquidating portfolio (1) decreased $2.0 billion Short-term investments/ Fed funds sold  Up $15.3 billion primarily reflectin

  6. Slide 6: Income Statement overview (linked quarter)

    Wells Fargo 4Q15 Supplement 5 Income Statement overview (linked quarter) Total revenue  Revenue of $21.6 billion, down $289 million Net interest income  NII up $131 million primarily reflecting growth in earning assets and higher variable income  NIM down 4 bps to 2.92% Noninterest income  Nonin

  7. Slide 7: Loans

    Wells Fargo 4Q15 Supplement 6 801.8 802.6 832.1 849.2 864.6 60.8 58.6 56.4 54.0 52.0862.6 861.2 888.5 903.2 4Q14 1Q15 2Q15 3Q15 4Q15 Core loans Non-strategic/liquidating loans Loans Period-end  Core loans grew $62.8 billion, or 8%, YoY and were up $15.4 billion, or 2%, LQ - Commercial loans up $9.3

  8. Slide 8: Broad-based, year-over-year loan growth

    Wells Fargo 4Q15 Supplement 7 24 29 34 39 44 49 54 59 64 4Q14 4Q15 Automobile 20 24 28 32 36 4Q14 4Q15 Credit Card 150 160 170 180 190 200 210 220 230 4Q14 4Q15 Core 1-4 Family First Mortgage (1) 100 105 110 115 120 125 130 135 140 145 150 4Q14 4Q15 Commercial Real Estate 200 220 240 260 280 300 320

  9. Slide 9: Deposits

    Wells Fargo 4Q15 Supplement 8 Deposits Average  Deposits up $67.0 billion, or 6%, YoY and $17.9 billion, or 1%, LQ - Noninterest-bearing deposits up $26.6 billion, or 8%, YoY and $8.8 billion, or 3%, LQ - Interest-bearing deposits up $40.4 billion, or 5%, YoY and $9.1 billion, or 1%, LQ  Average d

  10. Slide 10: 4Q15 Revenue diversification

    Wells Fargo 4Q15 Supplement 9 Balanced Spread and Fee Income Diversified Fee Generation (% of noninterest income) 4Q15 Revenue diversification 46% 54% Net Interest Income Noninterest Income 2% 4% 3% 1% 4% 10% 7% 4% 1% 2% 1% 3% 10% 4% 8% 23% 13% Lease Income and All Other Noninterest Income Net Gains

  11. Slide 11: Net interest income

    Wells Fargo 4Q15 Supplement 10  Net interest income up $408 million YoY and $131 million LQ reflecting growth in earning assets and higher variable income  Average earning assets up $44.6 billion, or 3%, LQ - Short-term investments/fed funds sold up $24.5 billion - Loans up $17.2 billion - Investm

  12. Slide 12: Noninterest income

    Wells Fargo 4Q15 Supplement 11 Noninterest income  Trust and investment fees down $59 million LQ as lower asset-based fees from lower market valuations were partially offset by higher investment banking  Other fees down $59 million as higher commercial real estate brokerage commissions were more t

  13. Slide 13: Noninterest expense and efficiency ratio

    Wells Fargo 4Q15 Supplement 12 12,647 12,507 12,469 12,399 12,399 4Q14 1Q15 2Q15 3Q15 4Q15 59.0% 58.8% 58.5% 56.7% 57.4% Noninterest expense and efficiency ratio (1)  Noninterest expense flat LQ - Personnel expense up $100 million • Salaries up $26 million • Commissions and incentive compensation d

  14. Slide 14: Community Banking

    Wells Fargo 4Q15 Supplement 13 Community Banking (1)  Net income of $3.3 billion, down 1% YoY and down 7% LQ Regional Banking  Primary consumer checking customers (2)(3) up 5.6% YoY  Retail bank cross-sell of 6.11 (2)(4) products per household  Debit card purchase dollar volume (5) of $73.0 bill

  15. Slide 15: Wholesale Banking

    Wells Fargo 4Q15 Supplement 14 Wholesale Banking (1)  Net income of $2.1 billion, stable YoY and up 9% LQ  Net interest income up 3% LQ - Average loans were up 13% YoY and 3% LQ on broad-based growth led by asset backed finance, corporate banking and structured CRE  Noninterest income up 5% LQ dr

  16. Slide 16: Wealth and Investment Management

    Wells Fargo 4Q15 Supplement 15 Wealth and Investment Management  Net income of $595 million, up 15% YoY and down 2% LQ  Net interest income up 5% LQ; average loans up 3% and average deposits up 3%  Noninterest income up 1% LQ primarily driven by higher gains on deferred compensation plan investme

  17. Slide 17: Credit quality

    Wells Fargo 4Q15 Supplement 16 Credit quality  Net charge-offs of $831 million, up $128 million, or 18%, LQ on higher oil and gas portfolio losses and seasonally higher non-real estate consumer losses - Oil and gas portfolio losses of $118 million, up $90 million LQ  No reserve build or release (1

  18. Slide 18: Capital Position

    Wells Fargo 4Q15 Supplement 17 Capital Position  Capital remained strong  Common Equity Tier 1 ratio well above the regulatory minimum and buffers and our internal buffer - Common Equity Tier 1 ratio (fully phased-in) of 10.7% at 12/31/15 (1) Capital Return  Period-end common shares outstanding d

  19. Slide 19: Summary

    Wells Fargo 4Q15 Supplement 18 Summary 2015  Strong earnings of $23.0 billion - Diluted earnings per share (EPS) of $4.15, up 1% from 2014  Returned $12.6 billion to shareholders through common stock dividends and net share repurchases - Net payout ratio (1) of 58%  Pre-tax pre-provision profit (

  20. Slide 20: Appendix

    Appendix

  21. Slide 21: Recent transactions update

    Wells Fargo 4Q15 Supplement 20 Recent transactions update GE Capital Purchase Updates  1/1/16 closed the purchase of GE Railcar Services from GE Capital - 77,000 railcars and just over 1,000 locomotives, as well as associated operating and long-term leases added to existing fleet making Wells Fargo

  22. Slide 22: Real estate 1-4 family first mortgage portfolio

    Wells Fargo 4Q15 Supplement 21 Real estate 1-4 family first mortgage portfolio  Core first lien up $4.4 billion, or 2%, LQ reflecting nonconforming mortgage originations - Nonconforming mortgage loans increased $7.0 billion to $139.0 billion (2) - First lien home equity lines of $16.2 billion, down

  23. Slide 23: Real estate 1-4 family junior lien mortgage portfolio

    Wells Fargo 4Q15 Supplement 22 Real estate 1-4 family junior lien mortgage portfolio  Junior lien mortgage loans down 3% LQ as new originations were more than offset by paydowns  Core junior nonaccruals down $111 million, or 7%, LQ  Core junior net charge-offs of $60 million, or 47 bps, down $19

  24. Slide 24: Consumer credit card portfolio

    Wells Fargo 4Q15 Supplement 23 Consumer credit card portfolio  Credit card outstandings up 5% LQ and 9% YoY reflecting account growth - Credit card household penetration (2) of 43.4%, up 56 bps LQ and 187 bps YoY reflecting continued new account growth - Purchase dollar volume up 4% LQ and 12% YoY,

  25. Slide 25: Auto portfolios

    Wells Fargo 4Q15 Supplement 24 Auto portfolios (1) Consumer Portfolio  Auto outstandings of $60.0 billion up 1% LQ and 8% YoY - 4Q15 originations of $7.6 billion down 9% LQ on seasonality and up 13% YoY  Nonaccrual loans declined $2 million LQ and $16 million YoY  Net charge-offs were up $23 mill

  26. Slide 26: Student lending portfolio

    Wells Fargo 4Q15 Supplement 25 Student lending portfolio Private Portfolio  $12.2 billion private loan outstandings up 3% YoY - Average FICO of 764 and 80% of the total outstandings have been co-signed - Originations up 5% YoY  Net charge-offs increased $11 million LQ due to seasonality of repayme

  27. Slide 27: Common Equity Tier 1 (Fully Phased-In)

    Wells Fargo 4Q15 Supplement 26 Common Equity Tier 1 (Fully Phased-In) Wells Fargo & Company and Subsidiaries COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1) Estimated (in billions) Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Total equity $ 194.0 194.0 190.7 190.0 185.

  28. Slide 28: Forward-looking statements and additional information

    Wells Fargo 4Q15 Supplement 27 Forward-looking statements and additional information Forward-looking statements: This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we may make forward-looking statements in our

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