Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Q1 2024 Earnings Presentation
21 slides from Wells Fargo &'s earnings presentation, Apr 12, 2024
Slide 1: 1Q24 Financial Results
1Q24 Financial Results April 12, 2024 © 2024 Wells Fargo Bank, N.A. All rights reserved.
Slide 2: 1Q24 results
1Q24 results • Net income of $4.6 billion, or $1.20 per diluted common share, included: – ($284) million, or ($0.06) per share, of additional expense for the estimated Federal Deposit Insurance Corporation (FDIC) 3 special assessment • Revenue of $20.9 billion, up 1% Financial Results – Net interest
Slide 3: 1Q24 earnings
1Q24 earnings Quarter ended $ Change from $ in millions, except per share data 1Q24 4Q23 1Q23 4Q23 1Q23 Net interest income $12,227 12,771 13,336 ($544) (1,109) Noninterest income 8,636 7,707 7,393 929 1,243 Total revenue 20,863 20,478 20,729 385 134 Net charge-offs 1,157 1,258 564 (101) 593 Change
Slide 4: Net interest income
Net interest income Net Interest Income ($ in millions) 13,336 13,163 13,105 • Net interest income down $1.1 billion, or 8%, from 1Q23 due to the impact 12,771 12,227 of higher interest rates on funding costs, including the impact of customer migration to higher yielding deposit products, as well as
Slide 5: Loans and deposits
Loans and deposits Average Loans Outstanding ($ in billions) Average Deposits ($ in billions) 948.7 945.9 943.2 938.0 928.1 1,356.7 1,347.4 1,340.3 1,340.9 1,341.6 60.7 84.7 113.9 122.9 119.6 126.6 112.4 Corporate 107.5 102.1 101.5 395.5 392.9 391.7 389.7 386.0 157.6 Wealth and 160.3 157.2 173.1 183
Slide 6: Noninterest income
Noninterest income Noninterest Income ($ in millions) • Noninterest income increased $1.2 billion, or 17%, from 1Q23 1 – Investment advisory fees and brokerage commissions up $224 million, or 8%, as higher market valuations drove higher asset-based fees 8,636 – Deposit and lending-related fees up $9
Slide 7: Noninterest expense
Noninterest expense Noninterest Expense ($ in millions) • Noninterest expense up $662 million, or 5%, from 1Q23 15,786 – Operating losses up $366 million driven by customer remediation accruals 355 14,338 for historical matters 13,676 1,931 2 – 1Q24 FDIC special assessment expense of $284 million 12
Slide 8: Credit quality: net loan charge-offs
Credit quality: net loan charge-offs 1 Provision for Credit Losses and Net Loan Charge-offs ($ in millions) • Commercial net loan charge-offs down $131 million to 25 bps of average loans 1,713 (annualized) reflecting a $190 million decrease in commercial real estate (CRE) net loan charge-offs, parti
Slide 9: Credit quality: allowance for credit losses for loans
Credit quality: allowance for credit losses for loans Allowance for Credit Losses for Loans ($ in millions) • Allowance for credit losses for loans (ACL) down modestly driven by a lower ACL for commercial real estate loans and auto loans, partially offset by a higher ACL for credit card loans 14,786
Slide 10: Capital and liquidity
Capital and liquidity 1 Common Equity Tier 1 Ratio under the Standardized Approach 11.4% Capital Position 11.0% 11.2% 1 10.8% 10.7% • Common Equity Tier 1 (CET1) ratio of 11.2% at March 31, 2024 remained 2 8.9% above our regulatory minimum and buffers of 8.9% Regulatory Minimum Capital Return 2 and
Slide 11: Consumer Banking and Lending
Consumer Banking and Lending Summary Financials • Total revenue down 3% YoY and down 4% from 4Q23 $ in millions (mm) 1Q24 vs. 4Q23 vs. 1Q23 – CSBB down 4% YoY driven by the impact of lower deposit balances, partially Revenue by line of business: offset by higher debit card interchange fees 1 Consume
Slide 12: Consumer Banking and Lending
Consumer Banking and Lending 1 Retail Mortgage Loan Originations ($ in billions) Debit Card Point of Sale (POS) Volume and Transactions 7.7 124.9 124.5 126.1 121.5 6.4 117.3 5.6 4.5 2.5 2.6 2.5 3.5 2.4 24% 2.4 19% 17% 16% 18% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Refinances as a % of Ret
Slide 13: Commercial Banking
Commercial Banking Summary Financials • Total revenue down 5% YoY and down 6% from 4Q23 $ in millions 1Q24 vs. 4Q23 vs. 1Q23 – Middle Market Banking revenue down 4% YoY and down 5% from 4Q23 driven by lower net interest income on higher deposit costs, partially offset by higher Revenue by line of bu
Slide 14: Corporate and Investment Banking
Corporate and Investment Banking Summary Financials • Total revenue up 2% YoY and up 5% from 4Q23 $ in millions 1Q24 vs. 4Q23 vs. 1Q23 Revenue by line of business: – Banking revenue up 5% YoY driven by higher investment banking revenue on increased activity across all products, partially offset by l
Slide 15: Wealth and Investment Management
Wealth and Investment Management Summary Financials • Total revenue up 2% YoY and up 2% from 4Q23 $ in millions 1Q24 vs. 4Q23 vs. 1Q23 – Net interest income down 17% YoY driven by lower deposit balances as Net interest income $869 ($37) (175) customers reallocated cash into higher yielding alternati
Slide 16: Corporate
Corporate Summary Financials • Revenue increased YoY reflecting improved results in our affiliated venture $ in millions 1Q24 vs. 4Q23 vs. 1Q23 capital business on lower impairments; up from 4Q23 on lower crediting Net interest income $32 $576 16 rates paid to the operating segments Noninterest inco
Slide 17: Endnotes
Endnotes Page 2 – 1Q24 results 1. Tangible common equity and return on average tangible common equity (ROTCE) are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” table on page 19. 2. The ef
Slide 18: Endnotes (continued)
Endnotes (continued) Page 8 – Credit quality: net loan charge-offs 1. Includes provision for credit losses for loans, debt securities, and other financial assets. Page 9 – Credit quality: allowance for credit losses for loans 1. On 1/1/2023, we adopted the Troubled Debt Restructuring (TDR) accountin
Slide 19: Tangible Common Equity
Tangible Common Equity Wells Fargo & Company and Subsidiaries TANGIBLE COMMON EQUITY We also evaluate our business based on certain ratios that utilize tangible common equity. Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling int
Slide 20: Common Equity Tier 1 under Basel III
Common Equity Tier 1 under Basel III Wells Fargo & Company and Subsidiaries 1 RISK-BASED CAPITAL RATIOS UNDER BASEL III Estimated Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in billions) 2024 2023 2023 2023 2023 Total equity $ 182.7 187.4 182.4 182.0 183.2 Adjustments: Preferred stock (18.6) (19.4) (
Slide 21: 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 March 31, 2024, and may differ materially from the results and disclosures
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