Wells Fargo mpany : Q4 2021 quarterly supplement (PDF)

4Q21 Quarterly Supplement

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
	Pages
Consolidated Results
Summary Financial Data	3
Consolidated Statement of Income	5
Consolidated Balance Sheet	6
Average Balances and Interest Rates (Taxable-Equivalent Basis)	7
Reportable Operating Segment Results
Combined Segment Results	8
Consumer Banking and Lending	10
Commercial Banking	12
Corporate and Investment Banking	14
Wealth and Investment Management	16
Corporate	17
Credit-Related Information
Consolidated Loans Outstanding - Period End Balances, Average Balances, and Average Interest Rates	18
Net Loan Charge-offs	19
Changes in Allowance for Credit Losses for Loans	20
Allocation of the Allowance for Credit Losses for Loans	21
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)	22
Commercial and Industrial Loans and Lease Financing by Industry	23
Commercial Real Estate Loans by Property Type	24
Equity
Tangible Common Equity	25
Risk-Based Capital Ratios Under Basel III - Standardized Approach	27
Risk-Based Capital Ratios Under Basel III - Advanced Approach	28

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2021, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

					Quarter ended		Dec 31, 2021				Year ended
						% Change from
(in millions, except per share amounts)		Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,		Sep 30,	Dec 31,			Dec 31,	Dec 31,	%
	2021	2021	2021	2021	2020	2021	2020			2021	2020		Change
Selected Income Statement Data
Total revenue	$	20,856	18,834	20,270	18,532	18,489	11 %	13	$	78,492	74,264	6 %
Noninterest expense		13,198	13,303	13,341	13,989	14,802	(1)	(11)			53,831	57,630	(7)
Pre-taxpre-provision profit (PTPP) (1)		7,658	5,531	6,929	4,543	3,687	38	108			24,661	16,634	48
Provision for credit losses		(452)	(1,395)	(1,260)	(1,048)	(179)	68	NM			(4,155)	14,129		NM
Wells Fargo net income		5,750	5,122	6,040	4,636	3,091	12	86			21,548	3,377	538
Wells Fargo net income applicable to common stock		5,470	4,787	5,743	4,256	2,741	14	100			20,256	1,786		NM
Common Share Data
Diluted earnings (loss) per common share		1.38	1.17	1.38	1.02	0.66	18	109			4.95	0.43		NM
Dividends declared per common share		0.20	0.20	0.10	0.10	0.10		-	100			0.60	1.22	(51)
Common shares outstanding		3,885.8	3,996.9	4,108.0	4,141.1	4,144.0	(3)	(6)
Average common shares outstanding		3,927.6	4,056.3	4,124.6	4,141.3	4,137.6	(3)	(5)			4,061.9	4,118.0	(1)
Diluted average common shares outstanding		3,964.7	4,090.4	4,156.1	4,171.0	4,151.3	(3)	(4)			4,096.2	4,134.2	(1)
Book value per common share (2)	$	43.32	42.47	41.74	40.27	39.71	2	9
Tangible book value per common share (2)(3)		36.35	35.54	34.95	33.49	32.99	2	10
Selected Equity Data (period-end)
Total equity		190,110	191,071	193,127	188,034	185,712	(1)	2
Common stockholders' equity		168,331	169,753	171,453	166,748	164,570	(1)	2
Tangible common equity (3)		141,254	142,047	143,577	138,702	136,727	(1)	3
Performance Ratios
Return on average assets (ROA) (4)		1.17 %	1.04	1.25	0.97	0.64						1.11 %	0.17
Return on average equity (ROE) (5)		12.8	11.1	13.6	10.3	6.6						12.0	1.1
Return on average tangible common equity (ROTCE) (3)		15.3	13.2	16.3	12.4	8.0						14.3	1.3
Efficiency ratio (6)		63	71	66	75	80						69	78
Net interest margin on a taxable-equivalent basis		2.11	2.03	2.02	2.05	2.16						2.05	2.28

NM - Not meaningful

1. Pre-taxpre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
2. Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.
3. Tangible common equity, tangible book value per common share, and return on average tangible common equity are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on pages 25 and 26.
4. Represents Wells Fargo net income divided by average assets.
5. Represents Wells Fargo net income applicable to common stock divided by average common stockholders' equity.
6. The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

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Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA (continued)

						Quarter ended		Dec 31, 2021				Year ended
							% Change from
($ in millions, unless otherwise noted)		Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,		Sep 30,	Dec 31,			Dec 31,	Dec 31,	%
	2021	2021	2021	2021	2020	2021	2020			2021	2020		Change
Selected Balance Sheet Data (average)
Loans	$	875,036	854,024	854,747	873,439	899,704	2 %	(3)	$	864,288	941,788	(8)%
Assets		1,943,430	1,949,700	1,939,879	1,934,425	1,925,013		-	1			1,941,905	1,941,709		-
Deposits		1,470,027	1,450,941	1,435,824	1,393,472	1,380,100	1	7			1,437,812	1,376,011	4
Selected Balance Sheet Data (period-end)
Debt securities		537,531	542,993	533,565	505,826	501,207	(1)	7
Loans		895,394	862,827	852,300	861,572	887,637	4	1
Allowance for credit losses for loans		13,788	14,705	16,391	18,043	19,713	(6)	(30)
Equity securities		72,886	66,526	64,547	57,702	60,008	10	21
Assets		1,948,068	1,954,901	1,945,996	1,957,264	1,952,911		-	-
Deposits		1,482,479	1,470,379	1,440,472	1,437,119	1,404,381	1	6
Headcount (#) (period-end)		249,435	253,871	259,196	264,513	268,531	(2)	(7)
Capital and other metrics (1)
Risk-based capital ratios and components (2):
Standardized Approach:
Common Equity Tier 1 (CET1)		11.4 %	11.6	12.1	11.8	11.6
Tier 1 capital		12.9	13.2	13.7	13.5	13.3
Total capital		15.9	16.2	16.8	16.8	16.5
Risk-weighted assets (RWAs) (in billions)	$	1,238.0	1,218.9	1,188.7	1,179.0	1,193.7	2	4
Advanced Approach:
Common Equity Tier 1 (CET1)		12.6 %	12.4	12.7	12.6	11.9
Tier 1 capital		14.3	14.1	14.5	14.4	13.7
Total capital		16.7	16.5	16.9	16.9	16.1
Risk-weighted assets (RWAs) (in billions)	$	1,116.7	1,138.6	1,126.5	1,109.4	1,158.4	(2)	(4)
Tier 1 leverage ratio		8.3 %	8.4	8.5	8.4	8.3
Supplementary Leverage Ratio (SLR)		6.9	6.9	7.1	7.9	8.1
Total Loss Absorbing Capacity (TLAC) Ratio (3)		23.0	23.7	25.1	25.2	25.7
Liquidity Coverage Ratio (LCR) (4)		118	119	123	127	133

1. Ratios and metrics for December 31, 2021, are preliminary estimates.
2. See the tables on pages 27 and 28 for more information on CET1, tier 1 capital, and total capital. The information presented reflects fully phased-in CET1, tier 1 capital, and RWAs, but reflects total capital in accordance with transition requirements.
3. Represents TLAC divided by the greater of RWAs determined under the Standardized and Advanced Approaches, which is our binding TLAC ratio.
4. Represents high-quality liquid assets divided by projected net cash outflows, as each is defined under the LCR rule.

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Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

						Quarter ended		Dec 31, 2021				Year ended
							% Change from
(in millions, except per share amounts)		Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,		Sep 30,	Dec 31,			Dec 31,	Dec 31,	%
	2021	2021	2021	2021	2020		2021	2020			2021	2020		Change
Interest income	$	10,121	9,834	9,693	10,046	10,550	3 %	(4)	$	39,694	47,919	(17)%
Interest expense		859	925	893	1,238	1,195	(7)	(28)			3,915	7,963	(51)
Net interest income		9,262	8,909	8,800	8,808	9,355	4	(1)			35,779	39,956	(10)
Noninterest income
Deposit-related fees		1,462	1,416	1,342	1,255	1,333	3	10			5,475	5,221	5
Lending-related fees		357	365	362	361	356	(2)	-			1,445	1,381	5
Investment advisory and other asset-based fees		2,579	2,882	2,794	2,756	2,598	(11)	(1)			11,011	9,863	12
Commissions and brokerage services fees		558	525	580	636	589	6	(5)			2,299	2,384	(4)
Investment banking fees		669	547	570	568	486	22	38			2,354	1,865	26
Card fees		1,071	1,078	1,077	949	943	(1)	14			4,175	3,544	18
Mortgage banking		1,035	1,259	1,336	1,326	1,207	(18)	(14)			4,956	3,493	42
Net gains (losses) from trading activities		(177)	92	21	348	(60)		NM	NM			284	1,172	(76)
Net gains on debt securities		119	283	-	151	160	(58)	(26)			553	873	(37)
Net gains from equity securities		2,470	869	2,696	392	884	184	179			6,427	665	866
Lease income		46	322	313	315	224	(86)	(79)			996	1,245	(20)
Other		1,405	287	379	667	414	390	239			2,738	2,602	5
Total noninterest income		11,594	9,925	11,470	9,724	9,134	17	27			42,713	34,308	24
Total revenue		20,856	18,834	20,270	18,532	18,489	11	13			78,492	74,264	6
Provision for credit losses		(452)	(1,395)	(1,260)	(1,048)	(179)	68	NM			(4,155)	14,129		NM
Noninterest expense
Personnel		8,475	8,690	8,818	9,558	8,948	(2)	(5)			35,541	34,811	2
Technology, telecommunications and equipment		827	741	815	844	838	12	(1)			3,227	3,099	4
Occupancy		725	738	735	770	826	(2)	(12)			2,968	3,263	(9)
Operating losses		512	540	303	213	621	(5)	(18)			1,568	3,523	(55)
Professional and outside services		1,468	1,417	1,450	1,388	1,664	4	(12)			5,723	6,706	(15)
Leases (1)		195	220	226	226	227	(11)	(14)			867	1,022	(15)
Advertising and promotion		225	153	132	90	138	47	63			600	600		-
Restructuring charges		66	1	(4)	13	781		NM	(92)			76	1,499	(95)
Other		705	803	866	887	759	(12)	(7)			3,261	3,107	5
Total noninterest expense		13,198	13,303	13,341	13,989	14,802	(1)	(11)			53,831	57,630	(7)
Income before income tax expense (benefit)		8,110	6,926	8,189	5,591	3,866	17	110			28,816	2,505		NM
Income tax expense (benefit)		1,711	1,521	1,445	901	574	12	198			5,578	(1,157)		NM
Net income before noncontrolling interests		6,399	5,405	6,744	4,690	3,292	18	94			23,238	3,662	535
Less: Net income from noncontrolling interests		649	283	704	54	201	129	223			1,690	285	493
Wells Fargo net income	$	5,750	5,122	6,040	4,636	3,091	12	86	$	21,548	3,377	538
Less: Preferred stock dividends and other		280	335	297	380	350	(16)	(20)			1,292	1,591	(19)
Wells Fargo net income applicable to common stock	$	5,470	4,787	5,743	4,256	2,741	14	100	$	20,256	1,786		NM
Per share information
Earnings per common share	$	1.39	1.18	1.39	1.03	0.66	18	111	$	4.99	0.43		NM
Diluted earnings per common share		1.38	1.17	1.38	1.02	0.66	18	109			4.95	0.43		NM

NM - Not meaningful

1. Represents expenses for assets we lease to customers.

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