2ac6230def35ba78e16f2ee992c64cec18dbf21f4cc6cc569c2652e0fc414b21

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

740bdff056f572c119fe835312b6f545c713d581a3007f7cb075a95feade94ff

Wells Fargo & Company is a diversified financial services company that provides a wide range of banking, investment, and financial products and services to individuals, businesses, and institutions **[0000072971-24-000129_wfc-20240331.htm:150]**. The company operates through four main segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management **[0000072971-24-000129_wfc-20240331.htm:150]** **[0000072971-24-000185_wfc-20240630.htm:171]** **[0000072971-24-000243_wfc-20240930.htm:170]** **[0000072971-24-000064_wfc-20231231_d2.htm:293]**. These segments offer various financial solutions, including checking and savings accounts, loans, credit and debit cards, investment banking, and wealth management services **[0000072971-24-000129_wfc-20240331.htm:150]** **[0000072971-24-000185_wfc-20240630.htm:171]** **[0000072971-24-000243_wfc-20240930.htm:170]** **[0000072971-24-000064_wfc-20231231_d2.htm:293]**.

1. **Consumer Banking and Lending** - Offers financial products and services such as checking and savings accounts, credit and debit cards, and various types of loans to consumers and small businesses with annual sales up to $10 million **[0000072971-24-000129_wfc-20240331.htm:150]** **[0000072971-24-000185_wfc-20240630.htm:171]** **[0000072971-24-000243_wfc-20240930.htm:170]** **[0000072971-24-000064_wfc-20231231_d2.htm:293]**.
2. **Corporate and Investment Banking** - Delivers capital markets, banking, and financial products and services to corporate, commercial real estate, government, and institutional clients globally, including corporate banking, investment banking, and trading services **[0000072971-24-000129_wfc-20240331.htm:150]** **[0000072971-24-000185_wfc-20240630.htm:171]** **[0000072971-24-000243_wfc-20240930.htm:170]** **[0000072971-24-000064_wfc-20231231_d2.htm:293]**.
3. **Wealth and Investment Management** - Provides personalized wealth management, brokerage, financial planning, and private banking services to affluent clients **[0000072971-24-000129_wfc-20240331.htm:150]** **[0000072971-24-000185_wfc-20240630.htm:171]** **[0000072971-24-000243_wfc-20240930.htm:170]** **[0000072971-24-000064_wfc-20231231_d2.htm:293]**.
4. **Commercial Banking** - Provides financial solutions to private, family-owned, and certain public companies, including banking and credit products, secured lending, and treasury management **[0000072971-24-000129_wfc-20240331.htm:150]** **[0000072971-24-000185_wfc-20240630.htm:171]** **[0000072971-24-000243_wfc-20240930.htm:170]** **[0000072971-24-000064_wfc-20231231_d2.htm:293]**.

c70bc4627211340d82ca751d541bfc8f26cce451a62a296bc781dc104662134f

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

8a901503ce749ae9150aca7a91e361634f0f221a5ea82cf178fa498f787f6d1d

1. Given that the asset cap has constrained your ability to grow in areas like wholesale deposits and market financing, how will its removal specifically impact your growth strategy, and what steps are you taking now to prepare for this transition?  **[WFC_3402768_14]** **[WFC_3402768_18]** **[WFC_3402768_12]** 

2. With the recent OCC consent order related to anti-money laundering and KYC compliance disclosed in your 10-Q, how do you plan to address these issues without significantly increasing expenses, and what measures are you implementing to prevent future compliance lapses?  **[WFC_3402768_16]** 

3. Your trading gains have exceeded $1 billion per quarter, but given the inherent volatility in market conditions, what strategies are you employing to ensure the sustainability of these revenues, and what key risks could impact future performance in this area?  **[WFC_3402768_19]** 

4. The securities repositioning had minimal impact on net interest income in the third quarter but is expected to contribute more in the fourth quarter; can you quantify the anticipated benefit to net interest income from this action, and how does this align with your broader interest rate risk management strategy?  **[WFC_3402768_20]** 

5. You've repurchased $15.5 billion in shares year-to-date and remain well above regulatory capital minimums; how are you balancing capital returns with potential economic uncertainties, and should we expect the current pace of buybacks to continue in the coming quarters?  **[WFC_3402768_13]** 

c0b04de105a6cc342ff4a07f967599f320476aeb50a7d862653bc29257ed4500

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **July 25, 2023**  **[0000072971-24-000243_wfc-20240930.htm:77]**  |
| End Date/Duration        | No expiration date  **[0000072971-24-000243_wfc-20240930.htm:77]**  |
| Total additional amount  | **$30 billion**  **[0000072971-24-000243_wfc-20240930.htm:77]**  |
| Remaining authorization amount | **$11.3 billion** (as of September 30, 2024)  **[0000072971-24-000243_wfc-20240930.htm:77]**  |
| Details                  | Return excess capital to shareholders while maintaining flexibility  **[0000072971-24-000185_wfc-20240630.htm:74]** **[0000072971-24-000064_wfc-20231231_d2.htm:89]** **[0000072971-24-000243_wfc-20240930.htm:77]** **[0000072971-24-000129_wfc-20240331.htm:62]**  |

3477a2a913e67224fe414c3d4fba50a8fa9b40dce05b240e5cfbb2c6d9222b76

- **Banks** - Compete with financial services providers such as banks.
- **Savings and Loan Associations** - Compete with financial services providers such as savings and loan associations.
- **Credit Unions** - Compete with financial services providers such as credit unions.
- **Finance Companies** - Compete with financial services providers such as finance companies.
- **Mortgage Banking Companies** - Compete with financial services providers such as mortgage banking companies.
- **Insurance Companies** - Compete with financial services providers such as insurance companies.
- **Investment Banks** - Compete with financial services providers such as investment banks.
- **Mutual Fund Companies** - Compete with financial services providers such as mutual fund companies.
- **Brokerage Houses** - Face increased competition from nonbank institutions such as brokerage houses.
- **Private Equity Firms** - Face increased competition from nonbank institutions such as private equity firms.
- **Online Lending Companies** - Face increased competition from nonbank institutions such as online lending companies.
- **Financial Services Subsidiaries of Commercial and Manufacturing Companies** - Face increased competition from financial services subsidiaries of commercial and manufacturing companies.

10436246e89656fe510cdea7925e86d568c313e18fa975ab368616a364eb509c

56427e9fddb66c9af63c777c2244fc8965952ad937190272225497254ef9a62f

### Q3 2024 Earnings Call (Guidance for FY 2024)
- **Net Interest Income**: Expect Q4 2024 net interest income to be roughly in line with Q3 2024, implying an approximately **9% decline** in full year 2024 net interest income compared with 2023  **[WFC_3402768_6]** .
- **Noninterest Expense**: Expect full year 2024 noninterest expense to be approximately **$54 billion**  **[WFC_3402768_7]** .

### Q2 2024 Earnings Call (Guidance for FY 2024)
- **Net Interest Income (NII)**: Expect full year 2024 net interest income to be in the upper half of the range provided in January, approximately **9% lower** than 2023  **[WFC_3393053_7]** .
- **Noninterest Expense**: Expect full year 2024 noninterest expense to be approximately **$54 billion**  **[WFC_3393053_7]** .
- **Common Stock Dividend**: Expect to increase the common stock dividend in Q3 by **14%**, subject to Board approval  **[WFC_3393053_6]** .
- **Capital Return**: Capacity to continue repurchasing common stock, though the pace will slow  **[WFC_3393053_6]** .
- **Credit Card Charge-off Rate**: Expect the rate to decline in Q3  **[WFC_3393053_5]** .
- **Equity Markets Assumption**: Assumes equity markets will remain at current elevated levels  **[WFC_3393053_13]** .

### Q1 2024 Earnings Call (Guidance for FY 2024)
- **Net Interest Income (NII)**: Expect full year 2024 net interest income to be approximately **7% to 9% lower** than 2023  **[WFC_3379744_3]** .
- **Noninterest Expense**: Excluding FDIC special assessment, expect full year 2024 noninterest expense to be approximately **$52.6 billion**  **[WFC_3379744_4]** .
- **Loan Growth**: Expect loans to decline in the first half, with slight growth in the second half  **[WFC_3379744_19]** .
- **Deposit Growth**: Expect flat commercial deposits and slight decline in consumer deposits  **[WFC_3379744_19]** .
- **Capital Return**: Expect to repurchase more common stock in 2024 than in 2023  **[WFC_3379744_1]** .
- **Credit Quality**: Anticipate additional losses in commercial real estate office portfolio  **[WFC_3379744_4]** .
- **Allowance for Credit Losses**: Down modestly, with declines in commercial real estate and auto loans, offset by higher credit card loans  **[WFC_3379744_4]** .
- **Interest Rate Environment**: Expect around **three rate cuts** in 2024  **[WFC_3379744_13]** .

### Q4 2023 Earnings Call (Guidance for FY 2024)
- **Net Interest Income (NII)**: Expect full year 2024 net interest income to be approximately **7% to 9% lower** than 2023  **[WFC_3370238_7]** .
- **Noninterest Expense**: Expect 2024 noninterest expense to be approximately **$52.6 billion**  **[WFC_3370238_8]** .
- **Capital Returns**: Plan to repurchase more common stock in 2024 than the $12 billion repurchased in 2023  **[WFC_3370238_4]** **[WFC_3370238_20]** .
- **Deposits**: Expect stable deposits in wealth and commercial segments, with declines on the consumer side  **[WFC_3370238_31]** .
- **Return on Tangible Common Equity (ROTCE)**: Aim for a sustainable **15% ROTCE** over the medium term  **[WFC_3370238_9]** **[WFC_3370238_18]** .

### Summary of Issued and Guided Periods
- **Q3 2024**: Guidance for **FY 2024**  **[WFC_3402768_7]** .
- **Q2 2024**: Guidance for **FY 2024**  **[WFC_3393053_7]** .
- **Q1 2024**: Guidance for **FY 2024**  **[WFC_3379744_3]** **[WFC_3379744_4]** .
- **Q4 2023**: Guidance for **FY 2024**  **[WFC_3370238_7]** **[WFC_3370238_15]** .

ec55f1d365b06fa919e54ae62b6858a6d9ee408dce355131a3020f579a02b913

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                                                 | Start Date  | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Charles W. Scharf     | Chief Executive Officer and President                                    | N/A         | Charles W. Scharf is the Chief Executive Officer and President of Wells Fargo & Company. He also serves as a director of the company  **[0001193125-24-161238_d30068dsc13da.htm:3]** **[0001193125-24-194719_d845596dsc13da.htm:3]** **[0001193125-24-174614_d807907dsc13da.htm:3]** **[0001193125-24-044546_d786367dsc13da.htm:4]** **[0001193125-24-133461_d825205dsc13d.htm:4]** **[0001193125-24-133464_d825225dsc13d.htm:5]** **[0001193125-24-161227_d850784dsc13da.htm:3]** **[0001193125-24-161239_d809571dsc13da.htm:3]** **[0001193125-24-161224_d851831dsc13da.htm:3]** **[0001193125-24-161218_d846653dsc13da.htm:3]** **[0001193125-24-161240_d844570dsc13da.htm:3]** **[0001193125-24-161243_d852393dsc13da.htm:4]** **[0001193125-24-133450_d825292dsc13d.htm:4]** **[0001193125-24-133451_d825278dsc13d.htm:4]** **[0001193125-24-230017_d825655dsc13da.htm:3]** **[0001193125-24-230025_d825710dsc13da.htm:3]** .               |
| Michael P. Santomassimo | Senior Executive Vice President and Chief Financial Officer             | N/A         | Michael P. Santomassimo is the Senior Executive Vice President and Chief Financial Officer of Wells Fargo & Company, overseeing the financial operations of the company  **[0001193125-24-161239_d809571dsc13da.htm:3]** .                               |
| Muneera S. Carr       | Executive Vice President, Chief Accounting Officer and Controller        | March 2020  | Muneera S. Carr has been serving as Executive Vice President, Chief Accounting Officer, and Controller since March 2020. She previously held various executive positions at Comerica, Incorporated  **[0000072971-24-000064_wfc-20231231.htm:30]** **[0001193125-24-275026_d905710dsc13da.htm:3]** . |
| William M. Daley      | Vice Chairman of Public Affairs                                          | November 2019 | William M. Daley has been serving as Vice Chairman of Public Affairs since November 2019. He briefly left this role in September 2023 but resumed it in October 2023  **[0000072971-24-000064_wfc-20231231.htm:30]** .                                 |
| Kristy Fercho         | Senior Executive Vice President and Head of Diverse Segments, Representation and Inclusion | October 2022 | Kristy Fercho has been in her current role since October 2022. She previously served as Executive Vice President and Head of Home Lending from July 2020 to April 2023  **[0000072971-24-000064_wfc-20231231.htm:30]** .                                |
| Derek A. Flowers      | Senior Executive Vice President and Chief Risk Officer                   | January 2022 | Derek A. Flowers has been the Chief Risk Officer since January 2022. He has been with the company or its predecessors for 25 years  **[0000072971-24-000064_wfc-20231231.htm:30]** .                                                                  |
| Kyle G. Hranicky      | Senior Executive Vice President and CEO of Commercial Banking            | September 2021 | Kyle G. Hranicky has held his current position since September 2021 and has been with the company or its predecessors for 29 years  **[0000072971-24-000064_wfc-20231231.htm:30]** .                                                                  |
| Tracy Kerrins         | Senior Executive Vice President and Head of Technology                   | May 2023    | Tracy Kerrins has been in her current role since May 2023. She previously served as Executive Vice President and Chief Information Officer for Consumer Technology and Enterprise Functions Technology  **[0000072971-24-000064_wfc-20231231.htm:30]** . |
| Bei Ling              | Senior Executive Vice President and Head of Human Resources              | October 2021 | Bei Ling has been serving in her current role since October 2021. She was previously the Managing Director of Human Resources at JPMorgan Chase & Co.  **[0000072971-24-000064_wfc-20231231.htm:30]** .                                               |
| Ellen R. Patterson    | Senior Executive Vice President and General Counsel                      | March 2020  | Ellen R. Patterson has been serving as General Counsel since March 2020. She was previously the Group Head and General Counsel at The Toronto-Dominion Bank  **[0000072971-24-000064_wfc-20231231.htm:30]** .                                         |
| Scott E. Powell       | Senior Executive Vice President and Chief Operating Officer              | December 2019 | Scott E. Powell has held his current position since December 2019. He was previously the President and CEO of Santander Consumer USA Holdings Inc.  **[0000072971-24-000064_wfc-20231231.htm:30]** .                                                  |
| Kleber R. Santos      | Senior Executive Vice President and CEO of Consumer Lending              | N/A         | Kleber R. Santos is the Senior Executive Vice President and CEO of Consumer Lending at Wells Fargo & Company. The documents do not provide information on his start date.                                  |
| Barry Sommers         | Senior Executive Vice President and CEO of Wealth and Investment Management | June 2020   | Barry Sommers has been serving in his current role since June 2020. He was previously the CEO of Wealth Management at JPMorgan Chase & Co.  **[0000072971-24-000064_wfc-20231231.htm:31]** .                                                          |
| Saul Van Beurden      | Senior Executive Vice President and CEO of Consumer, Small and Business Banking | May 2023    | Saul Van Beurden has been in his current role since May 2023. He previously served as the Senior Executive Vice President and Head of Technology  **[0000072971-24-000064_wfc-20231231.htm:31]** .                                                     |
| Jonathan G. Weiss     | Senior Executive Vice President and CEO of Corporate and Investment Banking | February 2020 | Jonathan G. Weiss has held his current position since February 2020. He has been with the company for 18 years  **[0000072971-24-000064_wfc-20231231.htm:31]** .                                                                                      |
| Ather Williams III    | Senior Executive Vice President and Head of Strategy, Digital Platform, and Innovation | N/A         | Ather Williams III serves as Senior Executive Vice President and Head of Strategy, Digital Platform, and Innovation. The documents do not provide specific details on his start date  **[0001193125-24-194719_d845596dsc13da.htm:3]** **[0001193125-24-174614_d807907dsc13da.htm:3]** **[0001193125-24-161238_d30068dsc13da.htm:3]** **[0001193125-24-275026_d905710dsc13da.htm:3]** **[0001193125-24-044546_d786367dsc13da.htm:4]** **[0001193125-24-133451_d825278dsc13d.htm:4]** **[0001193125-24-133450_d825292dsc13d.htm:4]** **[0001193125-24-230017_d825655dsc13da.htm:3]** **[0001193125-24-230025_d825710dsc13da.htm:3]** **[0001193125-24-133464_d825225dsc13d.htm:5]** **[0001193125-24-133461_d825205dsc13d.htm:4]** **[0001193125-24-161227_d850784dsc13da.htm:3]** **[0001193125-24-161218_d846653dsc13da.htm:3]** **[0001193125-24-161224_d851831dsc13da.htm:3]** **[0001193125-24-161239_d809571dsc13da.htm:3]** **[0001193125-24-161243_d852393dsc13da.htm:4]** . |

06220589bdebc63c0509b221cd4f3d7e040dd8a94a87cfa94146d43d4558aff9

**Annual guidance for FY 2024:**
- **Net Interest Income**: $47.7B  **[WFC_3412552_6]**  (cannot determine change from prior guidance  **[WFC_3402768_6]**  because previous was only given as a percentage decline from 2023)  
- **Noninterest Expense**: $54.6B  **[WFC_3412552_7]** **[WFC_3412552_8]**  (raised from $54B  **[WFC_3402768_7]** )

**Annual guidance for FY 2025:**
- **Net Interest Income (NII)**: 1% to 3% higher than full-year 2024 NII of $47.7B, or 3% to 5% higher than annualized Q4 2024 NII of $47B  **[WFC_3412552_7]** **[WFC_3412552_6]**  (no prior guidance)  
- **Noninterest Expense**: $54.2B  **[WFC_3412552_7]** **[WFC_3412552_8]**  (no prior guidance)  
- **ROTCE**: Target path to ~15%  **[WFC_3412552_6]**  (no prior guidance)  
- **Average Loans**: Expected modest growth from Q4 2024 to Q4 2025  **[WFC_3412552_7]**  (no prior guidance)  
- **Deposits**: Expected modest growth across deposit-gathering businesses  **[WFC_3412552_7]**  (no prior guidance)  
- **Allowance for Credit Losses**: Expected to remain relatively stable  **[WFC_3412552_5]**  (no prior guidance)  
- **CET1 Ratio**: 11.1%  **[WFC_3412552_5]**  (no prior guidance)  
- **Other Key Investments** (technology, branch modernization, etc.): Ongoing focus  **[WFC_3412552_8]**  (no prior guidance)  

056de1f32f65909d75e9e08d1dee6c42d2b2e9925e93389b24b8aa284eb8a7c7

Wells Fargo sees ROTCE climbing from 13.5% in 2024 to 15%, spurred by rising credit card profits and growth across wealth management, IB, and capital markets. While trading revenues lag peers, ongoing cost cuts and maturing card portfolios should lift earnings next year.

68e52368500b1d76b9c5452ccac4ad8751bf2ab7e56963e97e2d62df6d8c7ee2

- Wells Fargo plans to **increase share repurchases in 2024**, returning significant capital to shareholders.  **[WFC_3370238_5]**
- The company expects to achieve a **sustainable 15% ROTCE** over the medium term, driven by continued progress and strategic initiatives.  **[WFC_3370238_8]** **[WFC_3370238_18]**
- **Credit card balances are up 40% since the end of 2021**, and investments in corporate investment banking and wealth management are expected to drive revenue growth.  **[WFC_3370238_8]**

dc55a60f157c8a8f49563b894757fb4a44f4dd1d86b167fbe750ca9e93f5768f

| Name     | Start Date | End Date | Reason for Change |
|----------|------------|----------|-------------------|
| KPMG LLP | 1931  **[0000072971-24-000064_wfc-20231231_d2.htm:324]**  | Present  | Current auditor   |

c43d500e66af835e143bf0b27afdd36068389f2080a7cf92ebdd1f8a4e4513b2

e6546bef04cb1ee196e017b0c38d5cce3ae1d82d6adadbf4ddc4c10c4c65df08

5c0564a65c7103890afe5d91cf0bb6a1255a73bc883115bb6990b2dea7c3ee65

- **Wells Fargo's trading revenues decreased year-over-year**, while peers experienced increases of 15%-20%, indicating potential underperformance in their trading business.  **[WFC_3412552_19]**
- **Ongoing regulatory constraints and consent orders** continue to limit Wells Fargo's operations and profitability, as they have not yet resolved all outstanding orders that constrain them.  **[WFC_3412552_15]**
- **Reduced sensitivity to interest rate changes** may limit net interest income growth if rates rise, as the bank's balance sheet has become less asset-sensitive over the last number of quarters.  **[WFC_3412552_18]**

181ff144829bb8e9d4fccdd6cf0fd65c484bfd6c5c1f62d31858d4db2008070e

1. **ROE Potential Beyond Remediation**  
   **Q:** What is Wells Fargo's natural return beyond 15% ROE?  
   **A:** Management acknowledges the potential for returns beyond the medium-term **15% ROE** target but emphasizes the need to achieve that target first. They prefer to proceed step by step and will address future return goals after resolving remaining regulatory constraints.  **[WFC_3412552_15]** 

2. **Drivers to Achieve 15% ROE Target**  
   **Q:** What's driving the last mile to 15% ROE?  
   **A:** Management believes reaching the **15% ROE** can be achieved through multiple paths, including profitability improvements in the credit card and home lending businesses, as well as growth in investment banking, capital markets, and wealth management. They continue to focus on expense management while investing in technology and growth opportunities.  **[WFC_3412552_16]** 

3. **Expense Management Opportunities**  
   **Q:** Are there still meaningful cost-cutting opportunities?  
   **A:** Management sees significant opportunity to drive efficiency and continues to find areas for expense reduction through better technology and automation. They do not believe they have exhausted the low-hanging fruit and remain focused on ongoing efficiency improvements.  **[WFC_3412552_12]** 

4. **Loan Growth Expectations**  
   **Q:** What are your loan growth expectations for 2025?  
   **A:** They expect **low to mid-single-digit loan growth**, with more meaningful increases in the second half of the year. Growth is anticipated in consumer segments like credit cards and auto loans, and in commercial lending through new clients and investments in bankers.  **[WFC_3412552_13]** 

5. **Impact of Lifting Consent Order**  
   **Q:** How is lifting the consent order affecting ROE trajectory?  
   **A:** With the lifting of the sales practices consent order, the bank has reinstated incentive frameworks in branches, expected to drive better performance in new checking growth and credit card accounts. These actions are anticipated to contribute to improved profitability in 2025 and beyond.  **[WFC_3412552_11]** 

6. **Capital Allocation and Buybacks**  
   **Q:** What's your appetite for share buybacks in 2025?  
   **A:** Management intends to continue returning capital to shareholders through buybacks, similar to previous years. They believe they do not need to hold more than the current **11.1% CET1** ratio and will balance buybacks with opportunities for organic growth and other risks.  **[WFC_3412552_14]** 

7. **Credit Card Profitability**  
   **Q:** Is credit card profitability improving?  
   **A:** As newer credit card vintages mature, profitability is beginning to improve. Early vintages from **3.5 years ago** are becoming more profitable, and this is expected to contribute more meaningfully to the P&L over the next year or two.  **[WFC_3412552_10]** 

8. **Acquisition Strategy Post-Regulatory Issues**  
   **Q:** Will you consider acquisitions after resolving regulatory issues?  
   **A:** Management is focused on organic growth opportunities across businesses and executing the existing plan. They do not currently have plans for acquisitions and believe there is tremendous opportunity to build on existing positions organically.  **[WFC_3412552_25]** 

9. **Key Risks Outside Geopolitics**  
   **Q:** What are key risks outside geopolitical factors?  
   **A:** Cyber risk is identified as the biggest concern, with significant investment and resources dedicated to it. Management emphasizes that the strength of the U.S. economy is crucial, and anything that risks it is a concern.  **[WFC_3412552_24]** 

10. **Operational and Cultural Constraints**  
    **Q:** Are there constraints hindering growth post asset cap removal?  
    **A:** Management focuses on disciplined and controlled business expansion, ensuring appropriate controls are in place. They believe significant changes have been made and will proceed in a controlled way, without seeing constraints as hindrances to growth.   

11. **Rate Sensitivity of NII**  
    **Q:** How sensitive is NII to rate changes?  
    **A:** The bank remains marginally asset-sensitive, but the balance sheet has become less sensitive over recent quarters. A decline in rates poses a slight headwind to net interest income, while rates holding higher than forecasts would be a slight positive.  **[WFC_3412552_18]** 

12. **Trading Revenues and Risk Appetite**  
    **Q:** Why was trading revenue down compared to peers?  
    **A:** The decline is attributed to a strong prior-year quarter rather than weakness in the current quarter. Management notes their trading business is smaller and less complex than peers, with a disciplined risk appetite focused on balance sheet-friendly areas like FX.  **[WFC_3412552_19]** **[WFC_3412552_20]** 

13. **Credit Card Leadership Changes**  
    **Q:** What's behind the credit card leadership changes?  
    **A:** Ray Fisher is retiring after leading the credit card business, and a new leader has been recruited. The strategy remains the same, and management is excited about continuing to execute existing plans.  **[WFC_3412552_17]** 

14. **Investment Securities Repositioning**  
    **Q:** How do you decide on securities portfolio adjustments?  
    **A:** Management has acted twice to reposition the investment securities portfolio, being disciplined about payback periods, aiming for roughly a **2 to 2.5-year** payback. They will continue to evaluate opportunities based on market conditions.  **[WFC_3412552_22]** 

15. **Auto Lending Growth**  
    **Q:** Why increase appetite for auto lending growth?  
    **A:** Opportunities for profitable growth are seen in auto lending, with better spreads and improved capabilities. Though growth is small, originations are increasing slightly after previous tightening actions and spread compression.  **[WFC_3412552_21]** 

16. **NII Guidance Excluding Markets**  
    **Q:** Can you provide NII guidance excluding markets?  
    **A:** Management does not disaggregate NII guidance to exclude markets, citing the sensitivity of trading-related NII to short rates and the size of their markets business.  **[WFC_3412552_23]** 

8898247d976c4ddc79891dd9c80b072a30bb0066cf75ccb7211c96cfd6e5aeba

22e84be43d261fb940a9bbfe633d4cc4bd9ff89c54b6a19d85eebb8508341154

- **Wells Fargo is on track to achieve its medium-term Return on Tangible Common Equity (ROTCE) target of 15%**, driven by improving profitability in the credit card and home lending businesses. The company has already **improved ROTCE to nearly 13.5% in 2024** and expects further enhancements as these businesses mature.  **[WFC_3412552_16]** ,  **[WFC_3412552_15]**
- **The credit card business is entering a phase of increased profitability** as earlier vintages mature. With credit performance behaving as expected and **continued growth in new accounts**, profitability from the credit card portfolio is anticipated to positively impact earnings over the next year or two.  **[WFC_3412552_10]**
- **Focused on organic growth opportunities across its businesses**, Wells Fargo is driving growth in areas such as card services, wealth management, investment banking, and capital markets. The strategic emphasis on executing across these priorities is expected to generate **future revenue growth and enhanced profitability**.  **[WFC_3412552_24]**

844fe700662facd72425b404efe6d07b302214d6abde48bc2c3e29b89e91c605

1. **Asset Cap Removal Process**  
   **Q:** What happens next after submitting the third-party review?  
   **A:** Charles Scharf explained that after submitting their detailed plan to regulators, the regulators review it and follow formal processes to decide if the work meets their satisfaction. Once completed, they inform the company and the public.  **[WFC_3402768_12]** 

2. **NII Outlook and Drivers**  
   **Q:** Why is NII flat despite rate cuts?  
   **A:** Michael Santomassimo said NII remains flat due to factors like their unique deposit mix, pricing actions across the deposit base, and assets continuing to reprice upward. Repositioning the portfolio added **130 basis points** on **$16 billion** of securities, contributing to NII stability.  **[WFC_3402768_10]** **[WFC_3402768_20]** 

3. **Expenses and Efficiency**  
   **Q:** Will expenses remain flat despite investments?  
   **A:** Charles Scharf stated they continue finding efficiencies while investing in risk and regulatory areas and future growth. They've balanced this historically and will discuss 2025 expenses next quarter. Headcount has come down, showing efficiency efforts.  **[WFC_3402768_10]** 

4. **Capital Returns (Share Buybacks)**  
   **Q:** Is the buyback pace sustainable?  
   **A:** Michael Santomassimo noted they repurchased **$3.5 billion** in the quarter and **$15.5 billion** year-to-date. With capital levels **150 basis points** above minimum requirements, they have excess capital to return but will decide exact pacing quarterly.  **[WFC_3402768_12]** 

5. **Loan Demand Outlook**  
   **Q:** Any update on loan demand rebound?  
   **A:** Michael Santomassimo observed clients remain prudent about borrowing despite a **50 basis point** rate reduction. Uncertainties like the election and macro outlook affect confidence. As rates decrease further and uncertainties clear, demand may increase.  **[WFC_3402768_8]** **[WFC_3402768_9]** 

6. **Commercial Real Estate Exposure**  
   **Q:** Is office real estate stabilizing?  
   **A:** Charles Scharf said conditions aren't improving, with more properties affected and significant revaluation due to supply and demand. Michael Santomassimo added that new or renovated buildings perform well, but older offices face challenges. They feel confident in their allowance coverage ratio.  **[WFC_3402768_22]** 

7. **Regulatory Issues (AML/KYC)**  
   **Q:** Any impact from the AML/KYC investigation?  
   **A:** Charles Scharf acknowledged the formal agreement with the OCC and emphasized they take such issues seriously. They don't foresee significant expense impact beyond their **$54 billion** expense base and have been working on required improvements.  **[WFC_3402768_16]** 

8. **Impact of Asset Cap Removal**  
   **Q:** Where will you grow when asset cap lifts?  
   **A:** Charles Scharf indicated they would focus on wholesale deposits and markets business—areas previously constrained by the asset cap. This would allow them to better serve clients and pursue normal growth opportunities across the company.  **[WFC_3402768_14]** 

9. **Trading Gains Volatility**  
   **Q:** What drives trading gains fluctuations?  
   **A:** Michael Santomassimo explained that market volatility and seasonality affect trading gains. They've focused on improving capabilities and have delivered over **seven quarters** of strong performance by enhancing technology and client service.  **[WFC_3402768_18]** 

10. **Fee Income Drivers**  
    **Q:** Outlook for fee income lines?  
    **A:** Michael Santomassimo noted that investment management fees depend on market levels, with about **two-thirds** from equities. Card fees grow with economic activity and business success. Investment banking is market-dependent but aims to increase market share over time.  **[WFC_3402768_20]** 

ba576cfab85169664ba02b5eaad87da97e84ca41967c2a770992325356fcf41d

- **Wells Fargo expects ongoing declines in consumer deposits**, which could negatively impact funding and net interest income. They anticipate declines on the consumer side, despite expecting stable deposits in wealth and commercial sectors.  **[WFC_3370238_31]**
- The bank is facing **structural challenges in its commercial real estate (CRE) portfolio, particularly in the office sector**. Losses are expected to continue, and **lower interest rates have not materially improved the outlook**.  **[WFC_3370238_32]**
- **Credit card charge-offs are expected to continue to trend higher** as the credit card portfolio matures, indicating potential higher losses in consumer lending.  **[WFC_3370238_26]**

8103586cc63a79fd8d9e55f76a738f84a0a26477419562b9bad1198957bfe8b6

1. **Asset Cap Lifting**  
   **Q:** What are the potential benefits once the asset cap is lifted?  
   **A:** Lifting the asset cap would improve Wells Fargo's reputation and unlock growth opportunities previously restrained due to the cap.  **[WFC_3379744_17]**  It would allow expansion in areas such as financing customers in trading businesses and attracting sizable non-operational deposits.  **[WFC_3379744_17]**  Overall, removing the cap would positively impact growth and returns.  **[WFC_3379744_17]** 

2. **Profitability Targets**  
   **Q:** How will you achieve mid-teens ROTCE?  
   **A:** Wells Fargo is confident in reaching a **15% ROTCE** by optimizing capital and balance sheet, including share buybacks, investing in their businesses, and driving efficiency across the company.  **[WFC_3379744_7]**  They believe their businesses should have returns like the best of their peers and remain committed to improving performance.  **[WFC_3379744_7]** 

3. **Capital Levels and Buybacks**  
   **Q:** Is **11% CET1** the right capital level, allowing for buybacks?  
   **A:** The bank's existing needs with buffers are at **8.9% CET1**, but they aim to be conservative.  **[WFC_3379744_8]**  Acknowledging Basel III changes, they believe **11% CET1** may be appropriate and have significant excess capital, enabling them to return capital via buybacks.  **[WFC_3379744_8]**  They purchased shares this quarter, balancing conservatism with efficient capital use.  **[WFC_3379744_8]** 

4. **Basel III Impact**  
   **Q:** How will Basel III affect capital returns and buybacks?  
   **A:** Wells Fargo can handle Basel III requirements with current capital levels.  **[WFC_3379744_9]**  Even with a **100 basis points buffer**, they have **$12 billion of excess capital**.  **[WFC_3379744_9]**  Each quarter, they assess capital needs and risks to decide on buyback pacing, remaining confident they'll exceed last year's buybacks.  **[WFC_3379744_9]** 

5. **NII Outlook and Rates**  
   **Q:** What are your NII expectations and rate assumptions?  
   **A:** Their net interest income outlook assumes **three rate cuts** this year.  **[WFC_3379744_13]**  While rate changes could impact NII, they feel better about their guidance than in January but need more time to observe client reactions and deposit behavior.  **[WFC_3379744_13]**  Less rate cuts would be beneficial, but client behavior is crucial.  **[WFC_3379744_13]** 

6. **Deposit Repricing**  
   **Q:** What's happening with deposit pricing and mix shift?  
   **A:** On the commercial side, deposit pricing remains competitive with little change expected until the Fed adjusts rates.  **[WFC_3379744_11]**  On the consumer side, standard pricing is stable, but customers are moving funds from checking accounts to CDs or higher-yielding savings, although this migration has slowed recently.  **[WFC_3379744_11]** 

7. **Loan Growth Outlook**  
   **Q:** Are there impediments to improving loan growth?  
   **A:** Loan growth is affected by **low demand**, as clients remain cautious due to economic conditions and high rates.  **[WFC_3379744_11]**  Commercial clients are reducing inventories and being thoughtful about credit costs.  **[WFC_3379744_11]**  Consumer growth in card balances is insufficient to significantly impact the balance sheet, and mortgages continue to decline slightly.  **[WFC_3379744_11]** 

8. **Investment Banking Opportunities**  
   **Q:** How are you expanding in investment banking and trading?  
   **A:** Wells Fargo is underpenetrated in investment banking, especially on the equity side, due to past underinvestment.  **[WFC_3379744_10]**  They are investing in people and technology without increasing expenses, focusing on industries where they have strength and relationships.  **[WFC_3379744_10]**  They aim to improve products and services, expecting market share gains over time.  **[WFC_3379744_10]** 

9. **Expense Outlook and Remediation**  
   **Q:** Will cost savings from remediation processes impact expenses?  
   **A:** The bank isn't focusing on extracting cost savings from remediation efforts yet.  **[WFC_3379744_15]**  They are committed to completing risk and control work, including spending what's necessary.  **[WFC_3379744_15]**  While acknowledging other inefficiencies, they plan to invest in areas like card, investment banking, and branches without expecting expense reductions from remediation now.  **[WFC_3379744_15]** 

10. **NII Troughing**  
    **Q:** When do you expect NII to trough?  
    **A:** They anticipate net interest income to **trough towards the end of the year**, but timing is uncertain due to the environment.  **[WFC_3379744_17]**  Factors include asset repricing, deposit mix stabilization, and deposit pricing.  **[WFC_3379744_17]**  They're getting closer to the trough but can't specify an exact date.  **[WFC_3379744_17]** 

11. **Investing in Securities**  
    **Q:** Are there opportunities to invest in securities with higher rates?  
    **A:** Yes, the bank has started purchasing securities, mainly mortgages, in the first quarter due to improved long-end rates.  **[WFC_3379744_13]**  They plan to continue deploying cash into securities modestly in the next quarter.  **[WFC_3379744_13]** 

b7458d67d40746da19592079df2b6b452e8b90610fe93d9f3fdf91560c1f8c1c

1. **Net Interest Income Outlook**  
   **Q:** When will NII trough and stabilize?  
   **A:** Management expects NII to begin inflecting and troughing towards the end of the year and into **2025**, though they are not providing specific timing.  **[WFC_3370238_10]** 

2. **Path to 15% ROTCE**  
   **Q:** How quickly can ROTCE reach 15%?  
   **A:** They believe underlying ROTCE is closer to **13%**, adjusting for one-time assessments, and expect continued improvement through capital returns, business repositioning, and growth in the card business, moving towards **15%** over time.  **[WFC_3370238_18]** 

3. **Office CRE Losses Outlook**  
   **Q:** What's the outlook for office CRE losses?  
   **A:** The office CRE situation is expected to be a long process with uneven charge-offs. Reserves will be used more fully over time, reducing the allowance coverage ratio, but the issue will take time to play out.  **[WFC_3370238_17]** 

4. **Capital Deployment and Buybacks**  
   **Q:** Will share buybacks accelerate given excess capital?  
   **A:** They plan to repurchase more stock in **2024** than in **2023**, leveraging excess capital. Exact timing depends on factors like regulatory developments, but they have ample capacity for buybacks.  **[WFC_3370238_20]** 

5. **Deposit Mix and NII Decline**  
   **Q:** How does deposit mix affect NII decline?  
   **A:** The shift from non-interest-bearing deposits to interest-bearing products is a significant driver of the expected **7% to 9%** decline in NII. The mix shift is expected to stabilize at some point.  **[WFC_3370238_29]** 

6. **Net Interest Margin Compression**  
   **Q:** How will NIM change throughout the year?  
   **A:** NIM is expected to compress as NII declines and the balance sheet remains stable, with tailwinds from securities repricing and headwinds from declining rates on variable loans.  **[WFC_3370238_22]** 

7. **Card Charge-Offs Outlook**  
   **Q:** Where are card charge-offs headed in 2024?  
   **A:** Charge-offs are expected to trend slightly higher from the current **4%**, following the normal maturation and seasoning of new accounts.  **[WFC_3370238_26]** 

8. **Fee Income Drivers**  
   **Q:** What are the key fee income drivers this year?  
   **A:** Advisory fees in Wealth and Investment Management are the largest component, benefiting from higher market levels. Trading revenues depend on market conditions, and venture capital impairments should diminish.  **[WFC_3370238_12]** 

9. **Operating Expense Reductions**  
   **Q:** Can operating losses be reduced further?  
   **A:** While some operational losses are part of doing business, management continues investing to reduce fraud and other losses, aiming for downward trends as historical issues are resolved.  **[WFC_3370238_25]** 

10. **Impact of Falling Rates on CRE Losses**  
    **Q:** Do falling rates change the outlook for CRE losses?  
    **A:** Lower rates haven't significantly changed the outlook yet. While marginally helpful, structural issues in real estate demand need to be addressed first.  **[WFC_3370238_32]** 

7da9228a591f646b6c302a3f086fd6dfd918a0780e4c06115190ba5d0f63d882

- **Wells Fargo continues to face regulatory constraints, including an asset cap and consent orders, with uncertain timing for their removal, limiting growth potential.**  **[WFC_3402768_18]** **[WFC_3402768_12]**
- **Management indicates that even with the removal of the asset cap, significant growth opportunities may not materialize immediately, suggesting limited upside from regulatory relief.**  **[WFC_3402768_14]**
- **The company is dealing with ongoing regulatory issues, such as the recent formal agreement with the OCC regarding anti-money laundering and KYC compliance, which could lead to increased expenses and regulatory risks.**  **[WFC_3402768_16]**

43633f58aec671870e8cf2777d79030c5b0d3c9ccb7062bcd2769efcac49a438

- **Management is confident in lifting the asset cap**, focusing on completing the required work, which could unlock growth opportunities, particularly in **wholesale deposits and markets business**.  **[WFC_3402768_18]** **[WFC_3402768_16]** **[WFC_3402768_14]**
- **Stable deposit trends and prudent credit underwriting** have led to **good stabilization of deposits across businesses**, with less migration to higher-yielding alternatives, positioning Wells Fargo well in the current environment.  **[WFC_3402768_23]**
- Investments in trading capabilities and technology have resulted in **seven consecutive quarters of strong trading performance**, enhancing noninterest income and demonstrating successful execution of strategic priorities.  **[WFC_3402768_19]**

ba7712deb69a5f3eba6cb3857cf1ebdbff663f95c5ebae4681887eb8ddb74957

- **Strong fee-based revenue growth and market share gains in trading and investment banking**, driven by strategic investments; Wells Fargo is **outperforming peers** and expects **sustained growth** in these areas.  **[WFC_3393053_9]**
- **Increased revenues expected in Wealth and Investment Management** due to higher advisory assets and **improved adviser retention**, contributing positively to future earnings growth.  **[WFC_3393053_18]**
- **Strong capital position** allows for ongoing **capital returns to shareholders**, including **dividend increases** and **share buybacks**; the company remains committed to prudent capital management despite regulatory uncertainties.  **[WFC_3393053_11]** **[WFC_3393053_12]**

5ba52fe6d3d5114ff67d35abaec5edaa88b7fb09fe0ed02a559e28ab7ef5db44

- **Increased Expenses:** Wells Fargo's expenses have risen by $1.4 billion from their original guidance due to higher remediation expenses, operating losses, and the FDIC special assessment, which could pressure earnings.  **[WFC_3393053_14]**
- **Regulatory Constraints:** The asset cap imposed by regulators continues to constrain Wells Fargo, limiting its ability to expand in growth areas like the markets business and potentially affecting profitability.  **[WFC_3393053_19]**
- **Capital Return Uncertainty:** Uncertainty around higher stress capital buffer requirements and pending Basel III regulations is causing Wells Fargo to slow down its share buybacks, which may reduce capital returns to shareholders.  **[WFC_3393053_11]** **[WFC_3393053_12]**

7bbf74a6c240e72ccc6a34ef25cf5904e291bd70371ebf35817502f9df8b8fec

1. **Net Interest Income Outlook**  
   **Q:** Why are you confident NII will bottom later this year?  
   **A:** Management expects net interest income to bottom towards the end of the year due to slowing deposit migration, anticipated Federal Reserve rate cuts leading to lower deposit betas, and gradual asset repricing as securities and loans roll over. Positive trends in deposit growth across all lines of business support this outlook.  **[WFC_3393053_10]** 

2. **Expense Guidance Increase**  
   **Q:** What's driving the higher expense guidance and impact on core PPNR?  
   **A:** The expense guidance increased by **$1.4 billion** primarily due to higher customer remediation costs, FDIC expenses, and variable compensation tied to better revenues in Wealth Management. Core expenses are tracking as expected, and management emphasizes that these higher costs relate to historical issues, not ongoing operations, so core pre-provision net revenue remains strong.  **[WFC_3393053_14]** **[WFC_3393053_15]** 

3. **Capital Return and Buybacks**  
   **Q:** Will capital return slow due to higher SCB and Basel III uncertainty?  
   **A:** Yes, management plans to be conservative with capital returns in the short term due to a higher-than-expected Stress Capital Buffer and uncertainty around upcoming Basel III regulations. They aim to maintain their Common Equity Tier 1 ratio at around **11%** or slightly higher until there's more clarity on the regulatory landscape.  **[WFC_3393053_11]** **[WFC_3393053_12]** 

4. **Credit Quality and Reserves**  
   **Q:** How do you view credit quality and reserve trajectory?  
   **A:** Management is releasing reserves in certain consumer portfolios due to improved credit quality and lower balances, while maintaining coverage in Commercial Real Estate, especially office properties, where performance aligns with earlier expectations. They closely monitor vintages and adjust underwriting as needed, indicating no significant changes in credit quality trends.  **[WFC_3393053_15]** **[WFC_3393053_17]** 

5. **Deposit Costs and Sweep Pricing**  
   **Q:** Why did you increase deposit costs in Wealth Management?  
   **A:** The change pertains specifically to a sweep product in advisory accounts within Wealth Management, affecting a small portion of overall deposits. It's not a reaction to cash sorting or competitive pressures but a product-specific adjustment, with an expected impact of approximately **$350 million** for the second half of the year already included in NII guidance.  **[WFC_3393053_8]** **[WFC_3393053_16]** **[WFC_3393053_22]** 

6. **Trading Revenues Sustainability**  
   **Q:** Can trading revenue growth be sustained going forward?  
   **A:** Management is cautiously optimistic about sustaining growth in trading revenues due to ongoing investments across asset classes like FX and credit. While quarterly results may fluctuate with market conditions, they believe there's opportunity for prudent growth and continued client reception, though asset cap constraints limit some financing activities.  **[WFC_3393053_9]** **[WFC_3393053_11]** **[WFC_3393053_18]** 

7. **AI Initiatives and Efficiency Gains**  
   **Q:** How are AI initiatives contributing to efficiency and cost savings?  
   **A:** The company leverages traditional AI in areas like marketing and credit decisioning and is exploring generative AI to drive efficiency, particularly in call centers by automating tasks and analyzing customer interactions to identify root causes. This reduces manual effort and enhances customer experience, making AI a meaningful part of their tech investment priorities.  **[WFC_3393053_20]** 

8. **Card Loan Growth and Credit Quality**  
   **Q:** Is credit card growth impacting credit quality?  
   **A:** The growth in credit card balances aligns with expectations, with underwriting focused on FICO scores above **660** and no compromise on credit quality. Management closely monitors vintages, and performance is as anticipated. The increase in loss rates reflects portfolio maturation, not deteriorating credit standards.  **[WFC_3393053_17]** **[WFC_3393053_18]** 

d1bdfa5de34ab8f20bcd1c5059d3efff5326d796818f1906e0b42d3112e461ec

- **Ongoing regulatory challenges persist as the company still has multiple open consent orders, and management is committed to spending whatever is necessary to address them without focusing on efficiencies in these areas, potentially leading to higher expenses and impacting profitability.**  **[WFC_3379744_16]**
- **The strong performance in Investment Banking and Trading may not be sustainable due to seasonality and volatility; management cautioned not to consider the first quarter results as a new run rate, indicating that future revenues in these segments could fluctuate.**  **[WFC_3379744_16]** ,  **[WFC_3379744_26]**
- **Net Interest Income (NII) outlook is uncertain and dependent on assumptions of interest rate cuts, depositor behavior, and competitive environment; unexpected changes in these factors could negatively impact NII and overall financial performance.**  **[WFC_3379744_13]** ,  **[WFC_3379744_28]** ,  **[WFC_3379744_15]**

1083dceba3bfd8e823aefdb0d443c73d305341c60bb53cca3f39c021932d1fdc

- **Wells Fargo has significant excess capital and is committed to returning more capital to shareholders in 2024 compared to 2023, including substantial share buybacks, supporting shareholder value.**  **[WFC_3379744_9]**
- **Management is confident in achieving mid-teens return on tangible common equity (ROTCE) over the next few years through improved business performance, continued efficiency initiatives, and strategic investments, indicating strong future profitability.**  **[WFC_3379744_7]**
- **The company is underpenetrated in investment banking but is making strategic investments to expand its capabilities, particularly in equities and trading, which presents a significant opportunity for revenue growth and market share gains.**  **[WFC_3379744_16]** ,  **[WFC_3379744_10]**

722b5097dba71fcb8dcd71b1c25d2ddd41df211887c530059a3a8571cf4ea5c7

Wells Fargo & Co (WFC)

Financials