Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Q2 2023 Earnings Presentation
19 slides from Wells Fargo &'s earnings presentation, Jul 14, 2023
Slide 1: 2Q23 Financial Results
2Q23 Financial Results July 14, 2023 © 2023 Wells Fargo Bank, N.A. All rights reserved.
Slide 2: 2Q23 results
2Q23 results • Net income of $4.9 billion, or $1.25 per diluted common share • Revenue of $20.5 billion, up 20% – Net interest income of $13.2 billion, up 29% Financial Results – Noninterest income of $7.4 billion, up 8% ROE: 11.4% • Noninterest expense of $13.0 billion, up 1% 1 ROTCE: 13.7% 3 • Pre
Slide 3: Capital and liquidity
Capital and liquidity 1 Common Equity Tier 1 Ratio under the Standardized Approach Capital Position 1 10.8% • Common Equity Tier 1 (CET1) ratio of 10.7% at June 30, 2023 remained above our 10.6% 10.7% 2 10.4% 10.3% regulatory minimum and buffers of 9.2% 9.2% • CET1 ratio up ~30 bps from 2Q22 and dow
Slide 4: 2Q23 earnings
2Q23 earnings Quarter ended $ Change from $ in millions, except per share data 2Q23 1Q23 2Q22 1Q23 2Q22 Net interest income $13,163 13,336 10,198 ($173) 2,965 Noninterest income 7,370 7,393 6,842 (23) 528 Total revenue 20,533 20,729 17,040 (196) 3,493 Net charge-offs 764 564 345 200 419 Change in th
Slide 5: Credit quality
Credit quality 1 Provision for Credit Losses and Net Loan Charge-offs ($ in millions) Allowance for Credit Losses for Loans ($ in millions) 14,786 13,225 13,609 13,705 12,884 6,705 6,234 6,653 6,481 5,802 1,713 764 604 1.56% 560 1.37% 1.40% 1.42% 1.45% 1,207 399 8,081 344 957 7,082 6,991 6,956 7,224
Slide 6: Commercial Real Estate (CRE) loans
Commercial Real Estate (CRE) loans $154.3 billion of CRE Loans Outstanding, or 16% of Total Loans, with 1 1 $33.1 billion in CRE Office Loans , or 3% of Total Loans, as of June 30, 2023 CRE Office Loans • ~14% of the CRE office loan portfolio is owner-occupied and nearly one-third have 2 11% recours
Slide 7: Loans and deposits
Loans and deposits Average Loans Outstanding ($ in billions) Average Deposits and Rates ($ in billions) 1,445.8 1,407.9 926.6 945.5 948.5 948.7 945.9 1,380.5 1,356.7 1,347.4 20.3 24.4 42.1 Corporate 173.7 158.4 60.7 84.7 142.2 126.6 389.1 394.3 396.3 395.5 392.9 112.4 Wealth and 164.9 156.8 Investme
Slide 8: Net interest income
Net interest income Net Interest Income ($ in millions) 13,433 13,336 13,163 • Net interest income up $3.0 billion, or 29%, from 2Q22 primarily due to the 12,098 impact of higher interest rates and higher loan balances, partially offset by lower deposit balances 10,198 – 2Q23 MBS premium amortizatio
Slide 9: Noninterest expense
Noninterest expense Noninterest Expense ($ in millions) • Noninterest expense up $125 million, or 1%, from 2Q22 16,186 – Operating losses down $344 million 14,306 – Other expenses of $12.8 billion, up $469 million, or 4% 3,517 13,676 12,862 12,987 ◦ Personnel expense up $164 million, or 2%, driven b
Slide 10: Consumer Banking and Lending
Consumer Banking and Lending • Total revenue up 11% YoY and up 1% from 1Q23 Summary Financials – CSBB up 19% YoY as the impact of higher interest rates was partially offset by $ in millions (mm) 2Q23 vs. 1Q23 vs. 2Q22 lower deposit balances, as well as lower deposit-related fees reflecting our Reven
Slide 11: Consumer Banking and Lending
Consumer Banking and Lending 1 Mortgage Loan Originations ($ in billions) Debit Card Point of Sale (POS) Volume and Transactions 34.1 14.5 125.2 122.4 124.0 124.9 117.3 21.5 2.5 2.5 2.5 2.5 9.1 14.6 28% 2.4 16% 6.4 6.6 7.8 13% 17% 16% 19.6 12.4 8.2 5.6 7.7 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q2
Slide 12: Commercial Banking
Commercial Banking Summary Financials • Total revenue up 35% YoY and up 2% from 1Q23 $ in millions 2Q23 vs. 1Q23 vs. 2Q22 – Middle Market Banking revenue up 51% YoY due to the impact of higher interest Revenue by line of business: rates and higher loan balances, partially offset by lower deposit bal
Slide 13: Corporate and Investment Banking
Corporate and Investment Banking Summary Financials • Total revenue up 30% YoY and down 6% from 1Q23 $ in millions 2Q23 vs. 1Q23 vs. 2Q22 – Banking revenue up 37% YoY driven by stronger treasury management Revenue by line of business: results reflecting the impact of higher interest rates, higher le
Slide 14: Wealth and Investment Management
Wealth and Investment Management Summary Financials • Total revenue down 2% YoY and down 1% from 1Q23 $ in millions 2Q23 vs. 1Q23 vs. 2Q22 – Net interest income up 10% YoY driven by the impact of higher interest rates, Net interest income $1,009 ($35) 93 partially offset by lower deposit balances as
Slide 15: Corporate
Corporate Summary Financials • Net interest income up YoY due to the impact of higher interest rates $ in millions 2Q23 vs. 1Q23 vs. 2Q22 • Noninterest income up YoY due to lower impairments in our affiliated Net interest income ($91) ($107) 528 venture capital and private equity businesses, partial
Slide 16: Appendix
Appendix
Slide 17: Tangible Common Equity
Tangible Common Equity Wells Fargo & Company and Subsidiaries TANGIBLE COMMON EQUITY We also evaluate our business based on certain ratios that utilize tangible common equity. Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling int
Slide 18: Common Equity Tier 1 under Basel III
Common Equity Tier 1 under Basel III Wells Fargo & Company and Subsidiaries 1 RISK-BASED CAPITAL RATIOS UNDER BASEL III Estimated Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, ($ in billions) 2023 2023 2022 2022 2022 2 Total equity $ 182.0 183.2 182.2 178.5 179.8 2 Effect of accounting policy change — — (
Slide 19: 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 June 30, 2023, and may differ materially from the results and disclosures i
Wells Fargo & Company — Q2 2023 Earnings Presentation on 6ix