Wells Fargo & Company · NYSE:WFC

Wells Fargo & — Q1 2021 Earnings Presentation

20 slides from Wells Fargo &'s earnings presentation, Apr 14, 2021

  1. Slide 1: 1Q21 Financial Results

    1Q21 Financial Results April 14, 2021 © 2021 Wells Fargo Bank, N.A. All rights reserved.

  2. Slide 2: Actively helping our customers and communities

    Actively helping our customers and communities Supporting Our Customers Supporting Our Communities Helped 3.7 million consumer and small business customers by deferring Charitable Contributions: Deployed $530 million in philanthropic payments and waiving fees contributions, including: Funded approxi

  3. Slide 3: 1Q21 results

    1Q21 results ƒ Net Income of $4.7 billion, or $1.05 per diluted common share – Revenue of $18.1 billion, up 2% – Noninterest expense of $14.0 billion, up 7% Financial Results – Results included: ($ in millions, except EPS) Pre-tax Income EPS ROE: 10.6% Change in the allowance for credit losses $1,57

  4. Slide 4: 1Q21 earnings

    1Q21 earnings $ in millions (mm), except per share data 1Q21 4Q20 1Q20 vs. 4Q20 vs. 1Q20 Net interest income $8,798 9,275 11,312 ($477) (2,514) Noninterest income 9,265 8,650 6,405 615 2,860 Total revenue 18,063 17,925 17,717 138 346 Net charge-offs 523 584 941 (61) (418) Change in the allowance for

  5. Slide 5: Business and portfolio divestitures

    Business and portfolio divestitures ƒ The first phase of the previously announced sale of student loans closed in 1Q21, and the majority of the remaining student loan portfolio closed in early April ƒ In 1Q21, we announced agreements to sell Wells Fargo Asset Management1 and our Corporate Trust Serv

  6. Slide 6: Credit quality

    Credit quality Provision for Credit Losses and Net Charge-offs ($ in millions) Allowance for Credit Losses for Loans ($ in millions) 0.46% 4,005 9,534 20,436 20,471 19,713 2.19% 18,043 0.38% 2.22% 2.22% 0.29% 2.09% 12,022 8,767 8,929 8,197 0.26% 7,361 0.24% 941 1,114 769 731 584 6,743 523 1.19% 11,6

  7. Slide 7: Credit quality by operating segment

    Credit quality by operating segment 1Q21 Provision for Credit Losses Change in the Allocation of Allowance for Allowance for Credit Losses for Loans $ in millions Net Charge-offs Credit Losses Total (as of 3/31/21) Consumer Banking and Lending $370 (789) (419) $8,782 Commercial Banking 39 (438) (399

  8. Slide 8: Average loans and deposits

    Average loans and deposits Average Loans Outstanding ($ in billions) Average Deposits and Rates ($ in billions) 1,386.7 1,399.0 1,380.1 1,393.5 Corporate 965.0 971.3 1,338.0 49.0 27.9 931.7 899.7 60.2 37.7 873.4 80.2 173.7 Wealth and Investment 165.2 169.5 169.9 145.4 Management 444.5 426.0 194.5 Co

  9. Slide 9: Net interest income

    Net interest income Net Interest Income ($ in millions) ƒ Net interest income decreased $2.5 billion, or 22%, YoY reflecting the 11,312 impact of lower interest rates, which drove a repricing of the balance 9,880 sheet, lower loan balances due to soft demand and elevated prepayments, 9,368 9,275 as

  10. Slide 10: Noninterest expense

    Noninterest expense Noninterest Expense ($ in millions) 15,229 14,802 ƒ Noninterest expense up 7% from 1Q20 14,551 13,989 – Personnel expense up 15% 13,048 104 Goodwill Write-down 4,668 • Higher incentives and revenue-related compensation, including the impact of 4,416 4,452 All Other Expenses 4,101

  11. Slide 11: Consumer Banking and Lending

    Consumer Banking and Lending Summary Financials $ in millions (mm) 1Q21 vs. 4Q20 vs. 1Q20 ƒ Total revenue up modestly YoY and from 4Q20 Revenue by line of business: – CSBB down 6% YoY primarily due to the impact of lower interest rates and lower deposit-related fees on higher average checking accoun

  12. Slide 12: Consumer Banking and Lending

    Consumer Banking and Lending Mortgage Loan Originations ($ in billions) Debit Card Point of Sale (POS) Volume and Transactions1 61.6 59.2 53.9 105.3 108.5 51.8 102.9 48.0 28.8 90.6 93.1 28.7 21.6 18.2 24.9 51% 52% 52% 62% 64% 2.2 2.3 2.3 2.3 2.0 30.5 32.8 32.3 33.6 23.1 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20

  13. Slide 13: Commercial Banking

    Commercial Banking Summary Financials1 $ in millions 1Q21 vs. 4Q20 vs. 1Q20 ƒ Total revenue down 12% YoY and 8% from 4Q20 Revenue by line of business: – Middle Market Banking revenue down 20% YoY as the impact of lower interest Middle Market Banking $1,159 $10 (296) rates, as well as lower loan bala

  14. Slide 14: Corporate and Investment Banking

    Corporate and Investment Banking Summary Financials $ in millions 1Q21 vs. 4Q20 vs. 1Q20 ƒ Total revenue up 7% YoY and 17% from 4Q20 Revenue by line of business: – Banking revenue down 6% YoY on lower interest rates and lower deposit balances, Banking: partially offset by higher advisory fees, and e

  15. Slide 15: Wealth and Investment Management

    Wealth and Investment Management Summary Financials1 $ in millions 1Q21 vs. 4Q20 vs. 1Q20 ƒ Total revenue up 8% YoY and up 3% from 4Q20 Net interest income $657 ($57) (181) – Net interest income down 22% YoY driven by the impact of lower interest rates, Noninterest income 2,887 154 455 partially off

  16. Slide 16: Corporate

    Corporate Summary Financials1 $ in millions 1Q21 vs. 4Q20 vs. 1Q20 ƒ Net interest income down YoY primarily due to the impact of lower interest Net interest income ($430) ($158) (1,249) rates and unfavorable hedge ineffectiveness accounting results Noninterest income 1,319 (270) 1,438 ƒ Noninterest

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: 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

  19. Slide 19: Common Equity Tier 1 under Basel III

    Common Equity Tier 1 under Basel III Wells Fargo & Company and Subsidiaries RISK-BASED CAPITAL RATIOS UNDER BASEL III (1) Estimated Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (in billions, except ratio) 2021 2020 2020 2020 2020 Total equity $ 188.3 185.9 182.0 180.1 183.3 Adjustments: Preferred stock (

  20. Slide 20: 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, 2021, and may differ materially from the results and disclosures

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