Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Q3 2024 Earnings Presentation
22 slides from Wells Fargo &'s earnings presentation, Oct 11, 2024
Slide 1: 3Q24 Financial Results
3Q24 Financial Results October 11, 2024 © 2024 Wells Fargo Bank, N.A. All rights reserved.
Slide 2: 3Q24 results
3Q24 results • Net income of $5.1 billion, or $1.42 per diluted common share, included: – $(447) million, or $(0.10) per share, of net losses on debt securities related to a repositioning of the investment securities portfolio • Revenue of $20.4 billion, down 2% Financial Results – Net interest inco
Slide 3: 3Q24 earnings
3Q24 earnings Quarter ended $ Change from $ in millions, except per share data 3Q24 2Q24 3Q23 2Q24 3Q23 Net interest income $11,690 11,923 13,105 ($233) (1,415) Noninterest income 8,676 8,766 7,752 (90) 924 Total revenue 20,366 20,689 20,857 (323) (491) Net charge-offs 1,111 1,303 864 (192) 247 Chan
Slide 4: Net interest income
Net interest income Net Interest Income ($ in millions) • Net interest income down $1.4 billion, or 11%, from 3Q23 driven by higher funding costs reflecting customer migration to higher yielding deposit products, and deposit mix and pricing changes, including 13,105 12,771 $128 million increased pri
Slide 5: Loans and deposits
Loans and deposits Average Loans Outstanding ($ in billions) Average Deposits ($ in billions) 943.2 938.0 928.1 1,340.3 1,340.9 1,341.6 1,346.5 1,341.7 917.0 910.3 113.9 122.9 119.6 111.1 92.6 Corporate 107.5 102.1 101.5 102.8 108.0 391.7 389.7 386.0 Wealth and 382.2 379.7 157.2 173.1 183.3 187.5 19
Slide 6: Noninterest income
Noninterest income Noninterest Income ($ in millions) • Noninterest income increased $924 million, or 12%, from 3Q23 1 – Investment advisory fees and brokerage commissions up $318 million, or 11%, driven by higher asset-based fees reflecting higher market valuations, as 8,636 8,766 8,676 well as hig
Slide 7: Noninterest expense
Noninterest expense Noninterest Expense ($ in millions) • Noninterest expense down $46 million from 3Q23 15,786 – Personnel expense down $36 million and reflected the impact of efficiency 355 14,338 initiatives and lower severance expense, largely offset by higher revenue- 13,113 1,931 633 13,293 13
Slide 8: Credit quality: net loan charge-offs
Credit quality: net loan charge-offs 1 Provision for Credit Losses and Net Loan Charge-offs ($ in millions) • Commercial net loan charge-offs down $145 million to 24 bps of average loans (annualized) reflecting an $87 million decrease in commercial real estate (CRE) net loan charge-offs and $59 mill
Slide 9: Credit quality: allowance for credit losses for loans
Credit quality: allowance for credit losses for loans Allowance for Credit Losses for Loans ($ in millions) • Allowance for credit losses for loans (ACL) down $50 million as modest ACL declines across most asset classes were largely offset by a higher ACL for credit card loans on higher loan balance
Slide 10: Capital and liquidity
Capital and liquidity 1 Common Equity Tier 1 Ratio under the Standardized Approach Capital Position 1 11.4% 11.3% • Common Equity Tier 1 (CET1) ratio of 11.3% at September 30, 2024 11.0% 11.2% 11.0% • CET1 ratio up 30 bps from both 3Q23 and 2Q24 – An increase in accumulated other comprehensive incom
Slide 11: Consumer Banking and Lending
Consumer Banking and Lending Summary Financials • Total revenue down 5% YoY and up 1% from 2Q24 $ in millions (mm) 3Q24 vs. 2Q24 vs. 3Q23 – CSBB down 5% YoY driven by lower deposit balances and the impact of Revenue by line of business: customer migration to higher yielding deposit products includin
Slide 12: Consumer Banking and Lending
Consumer Banking and Lending 1 Retail Mortgage Loan Originations ($ in billions) Debit Card Purchase Volume and Transactions 124.5 126.1 128.2 126.8 6.4 121.5 5.3 5.5 4.5 2.6 2.6 2.6 2.5 3.5 2.4 24% 16% 18% 20% 13% 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Refinances as a % of Retail Origina
Slide 13: Commercial Banking
Commercial Banking Summary Financials • Total revenue down 2% YoY and up 7% from 2Q24 $ in millions 3Q24 vs. 2Q24 vs. 3Q23 – Middle Market Banking revenue down 1% YoY driven by lower net interest Revenue by line of business: income reflecting the impact of higher deposit costs, partially offset by h
Slide 14: Corporate and Investment Banking
Corporate and Investment Banking Summary Financials • Total revenue down slightly YoY and up 2% from 2Q24 $ in millions 3Q24 vs. 2Q24 vs. 3Q23 Revenue by line of business: – Banking revenue down 5% YoY driven by higher deposit costs and lower loan balances Banking: – Commercial Real Estate revenue d
Slide 15: Wealth and Investment Management
Wealth and Investment Management Summary Financials • Total revenue up 5% YoY and up 1% from 2Q24 $ in millions 3Q24 vs. 2Q24 vs. 3Q23 – Net interest income down 16% YoY driven by higher deposit costs Net interest income $842 ($64) (165) reflecting increased pricing on sweep deposits in advisory bro
Slide 16: Corporate
Corporate Summary Financials • Revenue decreased YoY and from 2Q24 on higher net losses on debt $ in millions 3Q24 vs. 2Q24 vs. 3Q23 securities related to a repositioning of the investment securities portfolio Net interest income ($415) ($271) (146) and lower net interest income due to higher credit
Slide 17: 2024 Outlook
2024 Outlook Net Interest Expect 2024 net interest income to be down ~9% from 2023 level of $52.4 billion Income • 4Q24 net interest income is expected to be roughly in-line with 3Q24 Expect 2024 noninterest expense to be ~$54.0 billion, unchanged from prior guidance Noninterest • As previously disc
Slide 18: Endnotes
Endnotes Page 2 – 3Q24 results 1. Tangible common equity and return on average tangible common equity (ROTCE) are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” table on page 20. 2. The ef
Slide 19: Endnotes (continued)
Endnotes (continued) Page 8 – Credit quality: net loan charge-offs 1. Includes provision for credit losses for loans, debt securities, and other financial assets. Page 10 – Capital and liquidity 1. The Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach is our binding CET1 r
Slide 20: Tangible Common Equity
Tangible Common Equity Wells Fargo & Company and Subsidiaries TANGIBLE COMMON EQUITY We also evaluate our business based on certain ratios that utilize tangible common equity. Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling int
Slide 21: Common Equity Tier 1 under Basel III
Common Equity Tier 1 under Basel III Wells Fargo & Company and Subsidiaries 1 RISK-BASED CAPITAL RATIOS UNDER BASEL III Estimated Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, ($ in billions) 2024 2024 2024 2023 2023 Total equity $ 185.0 178.1 182.7 187.4 182.4 Adjustments: Preferred stock (18.6) (16.6) (
Slide 22: 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, 2024, and may differ materially from the results and disclosu
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