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Barclays Capital 2013 GlobalFinancial Services Conference
Tim Sloan
Chief Financial Officer
© 2013 Wells Fargo Bank, N.A. All rights reserved.
September 9, 2013
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Wells Fargo vision
“We want to satisfy
all or cstomers!
financial nee"s an"
help them sccee"
financially#$
Wells Fargo
Vision
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Other %istribtion Channels
&T's 12,29(
Online ban)in*
cstomers +3
22#- ''
'obile cstomers+3
10#- ''
Serving consumers and businesses in more communities tanany oter !"S" Ban#
Store %istribtion
.etail ban)in* (,1-/
Wells Far*o &"isors 1,3(9
Wholesale -3
'ort*a*e -(1
Sales Forcelatform ban)ers +1 32,20
Financial a"isors +2 1/,2(
4ome 'ort*a*e
consltants
11,1
As of June 30, 2013.
(1) Active, full-time equivalent.(2) Series 7 brokers.(3) e!ional bankin! online an" mobile customers, base" on #0-"a$ active accounts.
-05 '' cstomers
9,0 stores
Wells Fargo Retail Banking stores
Wells Fargo Advisors officesWells Fargo Home Mortgage stores
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63 Fll7serice retail bro)era*e +base" on F&s +
6 Wealth mana*ement proi"er +base" on &8' +9
Deposits
61 Small bsiness len"er +
61 &to len"er +/
OtherConsumer
Lending
61 Commercial real estate ori*inator +(
61 'i""le mar)et commercial len"er +-Commercial
WealthManagement/
Brokerage
62 in 8#S# +1
62 %ebit car" isser +2
ResidentialMortgage
61 'ort*a*e ori*inator +3
61 'ort*a*e sericin* portfolio +3
(1) %&' "ata, June 2012. (2) ilson e*ort, A*ril 2013. (3) 'nsi"e +ort!a!e %inance, 213. () .S. in "ollars *er A "ata, 2011. (/) Autoount, Jul$ 2012 June2013. () ase" on 2011 .S. commercial real estate ori!inations, +A ommercial eal state4+ultifamil$ %inance %irms, 12431412. (7) S5are of lea" bankin!relations5i*s, 6S 2012 ommercial ankin! +omentum +onitor. ontinental .S. (eclu"es A849'). (:) 'nternal an" *eer re*orts, 213. (#) ase" on A+ ofaccounts ; </ million, arron=s, June 2012.
$eading position in #ey products
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7#00
72#00
0#00
2#00
#00
(#00
#00
10#00
Slope of the Y ield Curve Unemployment Rate Re al GDP Growth
0
2
(
10
12
1
1(
1
20
Balanced business model as led to consistent earnings gro%tin various economic environments
Wells Fargo Net Income(< in billions)
>ear to "ate (>6&) t5rou!5 June 30, 2013.(1) 10-$ear 6reasur$ less t5e 3-mont5 6reasur$.(2) Acquire" ?ac5ovia on &ecember 31, 200:. %ull $ear 200: net income @as im*acte" b$ an <:.1 billion (*re-ta) cre"it reserve buil", inclu"in! a <3.# billion
(*re-ta) *rovision to conform bot5 ?ells %ar!o=s an" ?ac5ovia=s cre"it reserve *ractices.
+1
Wachovia
merger (2)
Slope o the !ield Cur"e#$nemplo%ment Rate and Real
&D' &ro(th
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/
)*+,-
)*+--
)*+.* )*+./
)*+.0)*+0*
)*+01 )*+02 )*+0-
)*+31 )*+33
)*+4/ )*+41)*+43
1:10 2:10 3:10 :10 1:11 2:11 3:11 :11 1:12 2:12 3:12 :12 1:13 2:13
2&13 'esults
Diluted 5arnings 'er Common Share
.ecor" earnin*s of ;/#/ billion, p 19 year7oer7year +<o< an" - lin)e" =arter +>:
1th consectie =arter of ?S *rowth
.O& @ 1#//, p 1 bps <o< an" p ( bps >:
.O? @ 1#02, p 11( bps <o< an" p 3 bps >:
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(
),+.
)-+-
2:12 2:13
(ear)over)year results
're6ta7 're6pro"ision 'roit(< in billions)
Net Income(< in billions, ece*t S)
%ilte" earnin*s per common share
'eriod6end Loans(< in billions)
Return on 8ssets
Return on 59uit%'eriod6end Core Deposits(< in billions)
)*+31
)*+43
/1+3.:/,+*1:
2:12 2:13
/+,/:/+--:
2:12 2:13
)3+4)4+/
2:12 2:13
(-2#1 -1#
103#1 -#(
)00-+1)3*1+*
2:12 2:13
Core loans Aon7strate*icBli=i"atin* loans
)331+/
)4,/+1
2:12 2:13
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-
Balanced Spread andFee Income
Di"ersiied Fee &eneration
Deposit Ser"ice Charges 1:
Card Fees 3:
;otal Mortgage Banking 1.:
Insurance -:
Net &ains rom ;rading 2:
All "ata is for 213.(1) Bt5er noninterest income inclu"es net losses on "ebt securities available for sale, net !ains from equit$investments, lease income, life insurance investment income an" all ot5er noninterest income.
Strong revenue diversification
;otal ;rust < In"estment Fees 22:
;otal Other Fees *: Other Noninterest Income => 2:
ro)era*e a"isory,commissions an" other
'ort*a*e Ori*#BSales, net
'ort*a*e Sericin*, net Trst an" inestmentmana*ement
Dnestment ban)in*
Char*es an" fees on loans
:'erchant processin*:Cash networ)
?:C.? bro)era*e commissions
:>etters of cre"itCar" fees
%eposit serice char*esOther noninterest income +1
Aet *ains from tra"in*
Dnsrance
-*:-*:
Net InterestIncome
NoninterestIncome
&ll other fees
/1:
1*:
3:
-:
3:,:
1:,:
11:
-:2:
2:
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2+*:
1+.:1+,: 1+,:
1+1:
/+4:
WFC 8S E' AC &C C
Fee income outperformance vs" peers
SourceC SD.
Fee Income/8"erage 8ssets(213)
Fee Income/8"erage 8ssets(10 >ear Av!., 2003-2012)
2+1: 2+1:
2+*:
1+.:
1+1:
/+4:
WFC AC 8S E' &C C
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9
/+0*:
/+--:/+,4:
/+*4:
*+34:
*+0,:
$SB WFC 'NC @'M C B8C
Strong 2&13 returns
/.+/:
/,+*:
/1+,://+0:
3+.:
.+-:
$SB WFC @'M 'NC C B8C
Return on 59uit%Return on 8ssets
213 results. SourceC SD.
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10
Strong capital
/*+*3: 4+41:
/*+/1:
/*+24:
/*+0/:
2:12 3:12 :12 1:13 2:13
Capital contine" to *row in 2:13
Tier 1 common e=ity ratio n"er asel Dof 10#-1 increase" 32 bps >:
Tier 1 common e=ity ratio n"er asel DDD isestimate" to be #(2 at (B30B13 +1
7 OCD ne*atiely impacte" the ratio by 2 bpsin 2:13
rchase" 2(#- million common shares in 2:13an" entere" into a ;/00 million forwar"reprchase transaction, which settle" in 3:13
Dncrease" =arterly common stoc) "ii"en" to;0#30 per share in 2:13
See A**en"i *a!es 2-2/ for a""itional information re!ar"in! 6ier 1 common equit$ ratios.(1) stimate" base" on mana!ement=s inter*retation of final rules a"o*te" Jul$ 2, 2013, b$ t5e %e"eral eserve oar" establis5in! a ne@ com*re5ensive ca*ital
frame@ork for .S. bankin! or!aniEations t5at @oul" im*lement t5e asel ''' ca*ital frame@ork an" certain *rovisions of t5e &o""-%rank Act.
;ier Common 59uit% Ratio$nder Basel I
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*e economy and interest rates continueto be in a state of transition
Long rates ha"e risen sharpl%
7 107year treasry +1 p 3 bps from Ene 2th an" 91 bps from one year a*o
Industr% mortgage applications continue to slo(
7 '& refinance application in"e +2 "own (3 since pea)in* the wee) of 'ay 3r"
Lending o"erall continues to Ae modest
7 .ecent 47 shows that len"in* contines at a slow pace
ome prices ha"e continued to impro"e contriAuting to strong credit
perormance trends7 Case7Shiller +3 "ata shows home ales were p 12 year oer year
(1) SourceC .S. &e*artment of 6reasur$, as of #442013.(2) SourceC +ort!a!e ankers Association efi 'n"e, as of :42/42013.(3) SourceC ase-S5iller 20-it$ om*osite, June 2013 vs. June 2012.
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Current environment+ net interest income and ,-.
)//+/
)/*+3
1:10 2:10 3:10 :10 1:11 2:11 3:11 :11 1:12 2:12 3:12 :12 1:13 2:13
Aet Dnterest 'ar*in +AD'
2:13 net interest income p 2 lin)e" =arter +>: "rien by secrities prchases, lower fn"in*costs, hi*her ariable income, loan *rowth, as well as the benefit from an etra "ay in the =arter
Secrities prchases hae contine" in 3:13, bt epect contine" pressre on the AD'
Focs remains on *rowin* net interest income oer time
Dri"ers o NIM Compression
1:10 AD' #2-
Golatile Dtems 0#02
%eposit Hrowth +0#(
Core AD' .epricin*I Hrowth
+0#19
12 NIM 2+,.:
Aet Dnterest Dncome
(< in billions)
,+23:
,+*/: 2+4/:
2+,.:
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Current environment+ noninterest income
Aoninterest income relatiely stable >: an" p <o<
%eposit serice char*es p 3 >: on seasonalityan" accont *rowth
Trst an" inestment fees p 9 >: on stron*inestment ban)in* an" hi*her retail bro)era*e
asset7base" fees Car" fees p 10 >: reflectin* cre"it car" an"
"ebit car" accont *rowth an" stron*er OSolmes an" transactions
'ort*a*e ban)in* stable as hi*her net sericin*income was lar*ely offset by lower *ain on salereene
7 'ort*a*e *ain on sale mar*in an"ori*inations are epecte" to "ecline
/*#1-1
/*#--/
//#2*-
/*#0.* /*#.13
2:12 3:12 :12 1:13 2:13
Noninterest Income(< in millions)
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1
Current environment+ mortgage gain on sale marginsand originations
Hain on sale mar*ins reflect mar)et "eman" an" in"stry capacity
0
20
0
(0
0
100
120
10
1(0
1:10 2:10 3:10 :10 1:11 2:11 3:11 :11 1:12 2:12 3:12 :12 1:13 2:13
Hain on Sale 'ar*in 'ort*a*e Ori*ination Golme
(< in billions)
1#9
1#/
2#33 2#33
1#(-
1#/
1#3
1#90
2#3(
2#20
2#21
2#/( 2#/(
2#21
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1/
,#***
.#***
3#***
/*#***
/1#***
/,#***
/.#***
/3#***
1*#***
//* 1/* 2/* ,/* /// 1// 2// ,// //1 1/1 2/1 ,/1 //2 1/2
Fulillment F;5s
We hae effectiely mana*e" retail capacity across recent rate cycles
Current environment+ mortgage e/pense management
.Months
6Reduced
-#***F;5S
4
Months68dded-#4**F;5S
1Months6
8dded*#***F;5S
22 68nnouncedReductiono 2#***
F;5s
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1(
Current environment+ economic recovery drivingcontinued credit improvement
B1B2013
'e"ian Sale rice 37' 'oin* &*#F4F& +OF4?O rchase Only Dn"eSI Case7Shiller Composite 10
1B1B2012
SourcesC
(1) .S. &e*t. of ommerce, %9%A F orelo!ic.(2) %e"eral eserve.
71/
710
7/
0
/
10
1/
20
2/
30
3/
0
/
0 0/ 0( 0- 0 09 10 11 12 13
4osehol" %ebt +2,
<ear7oer7<ear ercent Chan*e
'ort*a*eJ :2 K 73#
St"ent >oansJ :2 K #
Cre"it Car"J :2 K 70#(
732
72
71(
7
0
1(
2
71(
7
0
1(
4ome rices +1,
<ear7oer7<ear ercenta*e Chan*e
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1-
0#/9
0#--
3# 3#/2
2#3
1#(11#/
1#23
0#(
0#92
2#0
1#1
0#//0#2
0#10
0#0/
0#00
0#/0
1#00
1#/0
2#00
2#/0
3#00
3#/0
#00
Commercial R5 N'L and Net Loss Rates =:>
A> Aet >oss
1**.
1**0
1**3
1**41*/*
1*//
0 2 ( 10 12 1 1( 1 20 22 2 2( 2 30 32 3 3( 3 0 2 (
; > o s s . a
t e 9
'onths on oo)
Residential R5 Loss Rates A% Eintage
200( 200- 200 2009 2010 2011
Current environment+ positive credit trends
Ne(er Eintages
0#00
0#/0
1#00
1#/0
2#00
2#/0
3#00
720#0
71/#0
710#0
7/#0
0#0
/#0
10#0
1/#0
20#0
R e s
i d e n
t i a l R 5 L o s s
R a
t e = & r e %
>
! / ! o m e
' r
i c e
I n
d e 7
C h a n g e
= B l u
e >
!o! ome 'rice Inde7 Change "s+ Resi R5Loss :
Consumer Non6R5 Loss Rates =:>
Cre"it Car" & to St"ent Other Consmer
9' sourceC orelo!ic.
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1
3#2(
#39
/#11 /#1 /#33
#9
#10 3#3#21
2# 2#(1 2#( 2#0 2#20 2#3(2#0
1#21#1/
1#30
0#-0
1#00 0#/0
1:09 2:09 3:09 :09 1:10 2:10 3:10 :10 1:11 2:11 3:11 :11 1:12 2:12 3:12 :12 1:13 2:13
Aet Char*e7offs Cre"it .esere il"
Current environment+ provision e/pense at its lo%est levelsince 3&0
'ro"ision 57pense(< in billions)
roision epense of ;(/2 million at its lowest leel since 3:0(
Aet char*e7offs of ;1#2 billion, or / bps, improe" 19, or 1 bps, >:
.esere release +1 of ;/00 million in 2:13 s# ;200 million in 1:13
?pect ftre resere releases, absent si*nificant "eterioration in the economic enironment
(1) rovision e*ense minus net c5ar!e-offs, ece*t 312 @5ic5 inclu"e" </7 million in net c5ar!e-offs full$ covere" b$ loan loss reserves..
+0#/0
+0#(/
+0#/
.esere .elease
2+442+,-
1+44
-+22
-+4
1+1
+1#0 +3,
+1#0+3
+0#
1+*,+0#(
.+
-+*4
,+-.
+0#+0#
+0#2
+0#2/
+0#2
+-4+32
+11
1+**+3*
+0#/0
*+.-
+1
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>oan ortfolio&c=isitions
;# billion of forei*n loans +8L Commercial .eal?state an" CID financin* close" 3:13
;1#( billion of 8#S# C.? from DAH sche"le"
to close in 2413
siness artnershipCre"it Car" issin* partnership with &merican
?press annonce"
Fll scale pro"ct lanch by mi"7201
3&13 momentum
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*argets
Tar*ets "epen" on the oerall economic, interest rate an" eolin* re*latory
enironment an" assme contine" annal reene an" earnin*s *rowthoer time
;arget
?fficiency .atio // 7 /9
.O& 1#30 7 1#(0
.O? 12 7 1/
Total ayot .atio +1 M/0 7 (/
(1) 6otal *a$out means common stock "ivi"en"s an" re*urc5ases. &ivi"en"s an" s5are re*urc5ases are subGect to ?ells %ar!o boar" an" re!ulator$ a**rovals, an"ot5er consi"erations.
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Well positioned for te future
Demonstrated perormance o"er Aoth the short and long term
7 1 consectie =arters of ?S *rowth
7 Stron* retrns erss peers
7 >ower ris) profile than lar*e peers
Managing through the current en"ironment7 .e7siNin* the mort*a*e bsiness to match "eman"
7 Dnestin* opportnistically in secrities
7 Continin* to *row non7mort*a*e fee income, as we "i" in many of or )ey bsinesses in 2:13
7 Continin* to bil" a hi*h =ality loan portfolio an" benefittin* from crrent cre"it tren"s
Well positioned or the uture
7 >ea"in* mar)et share in cornerstone pro"cts
7 roa" pro"ct set an" stron* "istribtion capabilities
7 %iersifie" reene sorces
7 ?fficient operations with a""itional opportnities for improement
7 >ar*e, low cost "eposit base7 Stron* capital
7 Focse" on retrnin* more to sharehol"ers
7 Stron* capital also *ies the ability to contine to ma)e ac=isitions
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ppendi/
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