Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Investor Presentation (December 2009)
17 slides from Wells Fargo &'s investor presentation, Dec 15, 2009
Slide 1: Wells Fargo Equity Offering and TARP Repayment
Exhibit 99.2 Wells Fargo Equity Offering and TARP Repayment Dick Kovacevich, Chairman John Stumpf, CEO Howard Atkins, CFO December 14, 2009
Slide 2: Forward-looking Statements And Additional Information
Forward-looking Statements And Additional Information 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 performance and business. We make forward-looking statements when we use
Slide 3: Today's Announcements
Today’s Announcements Repayment of $25 billion of TARP preferred in full $10.4 billion common equity offering Cash payment for Prudential’s interest in the retail brokerage JV Well capitalized with proven record of strong organic capital growth 3
Slide 4: Wells Fargo to Repay $25 Billion of TARP Preferred
Wells Fargo to Repay $25 Billion of TARP Preferred Pursuant to terms approved by U.S. Banking Regulators Issue $10.4 billion of common stock Common Raise $1.35 billion through common stock issuance to Wells Fargo benefit Equity plans and in lieu of a portion of 2009 cash incentive compensation to Is
Slide 5: Wells Fargo Equity Offering Overview
Wells Fargo Equity Offering Overview Issuer: Wells Fargo & Company Ticker / Exchange: WFC / NYSE Offering size: $10.4 billion of common stock proceeds Over-allotment: 15% Share composition: 100% primary Stock price (as of 12/11/09): $25.41 Shares outstanding (pre-offer as of 4,686,830,155 11/30/09):
Slide 6: Key Capital Ratios
Key Capital Ratios Pro Forma Ratios¹ Tier 1 Common 6.2% Tier 1 Leverage 8.0 Tier 1 Capital 9.4 Total Capital 13.4 (1) Based on September 30, 2009 actuals, adjusted for $25 billion TARP repayment, $10.4 billion common stock issuance, $1.4 billion benefit plan issuance, $1.5 billion asset sales and ot
Slide 7: Stockholders' Equity Up $63 Billion Pro Forma Since Last Year
Stockholders’ Equity Up $63 Billion Pro Forma Since Last Year Wells Fargo remains well capitalized and expects capital actions to strengthen Tier 1 Common by 100 bps Amount Raised / Tier 1 $ in Billions (Repaid) Common 9/30/09 Actual $53.0 5.2% (1) Repay $25.0B TARP in Q4 2009 ($25.0) ($2.0) Common
Slide 8: Pre-Tax Pre-Provision Profit Generates Significant Organic Capital
Pre-Tax Pre-Provision Profit Generates Significant Organic Capital PTPP more than double PTPP to Net Charge-offs 3Q09 quarterly net charge-offs ($ in billions) PNC 2.57x 10.8 Wells Fargo 2.11x 9.8 9.2 JPMorgan Chase 2.07x 5.1 U.S. Bancorp 2.06x 4.4 3.3 Citigroup 1.07x Bank of America 1.01x 1Q09 2Q09
Slide 9: Strong Financial Position
Strong Financial Position $63 billion increase in stockholders’ equity from a year ago (pro forma September 30, 2009 including today’s announced capital actions and excluding impact of receipt and repayment of TARP funds) $40.9 billion write-down of Wachovia’s high risk loan portfolio at close Stren
Slide 10: Wachovia Merger Update
Wachovia Merger Update Integration on plan, on schedule and under budget Estimated merger costs reduced to $5.5 billion from $7.9 billion Reconfirmed $5 billion of expected annual run-rate cost savings by completion of the integration in 2011 Completed merger events: – Re-branding of Wachovia broker
Slide 11: Wells Fargo: Well Positioned for Sustainable Growth
Wells Fargo: Well Positioned for Sustainable Growth Substantially strengthened our balance sheet and capital position Announcement of capital action plan will fulfill repayment of TARP Diversified business model Powerful distribution channels Superior sales execution and customer service Disciplined
Slide 12: Appendix
Appendix 12
Slide 13: Balanced Business Model
Balanced Business Model Balanced Loan Balanced Spread and Diversified Fee Portfolio Fee Income Generation 4% 10% 2% 4% 23% 4% 40% 52% 6% 48% 56% 9% 17% 11% 14% Consumer Loans 56% Net Interest Income 52% Trust & Investment Fees 23% Commercial Loans 40% Non-Interest Income 48% Mortgage Servicing 17% F
Slide 14: Leading Market Presence in Diverse Businesses
Leading Market Presence in Diverse Businesses Credit Mortgage Deposits #1 Small business lender #1 Originator #2 U.S. banking deposits #1 Middle-Market lender #2 Servicer #1 Transaction accounts as #1 Agricultural lender a % of total deposits among large banks #2 Supplier of credit to U.S. economy i
Slide 15: Leading Distribution System in Financial Services
Leading Distribution System in Financial Services Serving 70+ million customers, 1 in 3 U.S. households Wells Fargo retail banking stores – 3,312 Wachovia retail banking stores – 3,341 Wells Fargo Advisors stores – 1,372 As of 9/30/2009. 15
Slide 16: Tier 1 common equity reconciliation
Tier 1 common equity reconciliation TIER 1 COMMON EQUITY (1) Quarter ended Sept. 30, June 30, Dec. 31, (in billions) 2009 2009 2008 Total equity $ 128.9 121.4 102.3 Less: Noncontrolling interests (6.8) (6.8) (3.2) Total Wells Fargo stockholders' equity 122.1 114.6 99.1 Less: Preferred equity (31.1)
Slide 17: Shelf registration statement and prospectus notice
Wells Fargo has an existing shelf registration statement on file with the Securities and Exchange Commission (SEC) and will file a prospectus supplement related to this offering to which this communication relates. Before you invest, you should read the registration statement (including the base pro
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