3Q21 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 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 | Sep 30, 2021 | Nine months ended | |||||||||||||
% Change from | |||||||||||||||
(in millions, except per share amounts) | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Sep 30, | Sep 30, | Sep 30, | % | |||||
2021 | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | 2021 | 2020 | Change | ||||||
Selected Income Statement Data | |||||||||||||||
Total revenue | $ | 18,834 | 20,270 | 18,532 | 18,489 | 19,316 | (7)% | (2) | $ | 57,636 | 55,775 | 3 % | |||
Noninterest expense | 13,303 | 13,341 | 13,989 | 14,802 | 15,229 | - | (13) | 40,633 | 42,828 | (5) | |||||
Pre-taxpre-provision profit (PTPP) (1) | 5,531 | 6,929 | 4,543 | 3,687 | 4,087 | (20) | 35 | 17,003 | 12,947 | 31 | |||||
Provision for credit losses | (1,395) | (1,260) | (1,048) | (179) | 769 | (11) | NM | (3,703) | 14,308 | NM | |||||
Wells Fargo net income | 5,122 | 6,040 | 4,636 | 3,091 | 3,216 | (15) | 59 | 15,798 | 286 | NM | |||||
Wells Fargo net income (loss) applicable to common stock | 4,787 | 5,743 | 4,256 | 2,741 | 2,901 | (17) | 65 | 14,786 | (955) | NM | |||||
Common Share Data | |||||||||||||||
Diluted earnings (loss) per common share | 1.17 | 1.38 | 1.02 | 0.66 | 0.70 | (15) | 67 | 3.57 | (0.23) | NM | |||||
Dividends declared per common share | 0.20 | 0.10 | 0.10 | 0.10 | 0.10 | 100 | 100 | 0.40 | 1.12 | (64) | |||||
Common shares outstanding | 3,996.9 | 4,108.0 | 4,141.1 | 4,144.0 | 4,132.5 | (3) | (3) | ||||||||
Average common shares outstanding | 4,056.3 | 4,124.6 | 4,141.3 | 4,137.6 | 4,123.8 | (2) | (2) | 4,107.1 | 4,111.4 | - | |||||
Diluted average common shares outstanding (2) | 4,090.4 | 4,156.1 | 4,171.0 | 4,151.3 | 4,132.2 | (2) | (1) | 4,140.0 | 4,111.4 | 1 | |||||
Book value per common share (3) | $ | 42.47 | 41.74 | 40.27 | 39.71 | 38.91 | 2 | 9 | |||||||
Tangible book value per common share (3)(4) | 35.54 | 34.95 | 33.49 | 32.99 | 32.15 | 2 | 11 | ||||||||
Selected Equity Data (period-end) | |||||||||||||||
Total equity | 191,071 | 193,127 | 188,034 | 185,712 | 181,727 | (1) | 5 | ||||||||
Common stockholders' equity | 169,753 | 171,453 | 166,748 | 164,570 | 160,804 | (1) | 6 | ||||||||
Tangible common equity (4) | 142,047 | 143,577 | 138,702 | 136,727 | 132,874 | (1) | 7 | ||||||||
Performance Ratios | |||||||||||||||
Return on average assets (ROA) (5) | 1.04 % | 1.25 | 0.97 | 0.64 | 0.66 | 1.09 % | 0.02 | ||||||||
Return on average equity (ROE) (6) | 11.1 | 13.6 | 10.3 | 6.6 | 7.2 | 11.7 | (0.8) | ||||||||
Return on average tangible common equity (ROTCE) (4) | 13.2 | 16.3 | 12.4 | 8.0 | 8.7 | 14.0 | (0.9) | ||||||||
Efficiency ratio (7) | 71 | 66 | 75 | 80 | 79 | 70 | 77 | ||||||||
Net interest margin on a taxable-equivalent basis | 2.03 | 2.02 | 2.05 | 2.16 | 2.13 | 2.03 | 2.32 |
NM - Not meaningful
- 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.
- For the nine months ended September 30, 2020, diluted average common shares outstanding equaled average common shares outstanding because our securities convertible into common shares had an anti-dilutive effect.
- 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.
- 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.
- Represents Wells Fargo net income divided by average assets.
- Represents Wells Fargo net income (loss) applicable to common stock divided by average common stockholders' equity.
- 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 | Sep 30, 2021 | Nine months ended | |||||||||||||
% Change from | |||||||||||||||
($ in millions, unless otherwise noted) | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Sep 30, | Sep 30, | Sep 30, | % | |||||
2021 | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | 2021 | 2020 | Change | ||||||
Selected Balance Sheet Data (average) | |||||||||||||||
Loans | $ | 854,024 | 854,747 | 873,439 | 899,704 | 931,708 | - % | (8) | $ | 860,666 | 955,918 | (10)% | |||
Assets | 1,949,700 | 1,939,879 | 1,934,425 | 1,925,013 | 1,945,911 | 1 | - | 1,941,391 | 1,947,315 | - | |||||
Deposits | 1,450,941 | 1,435,824 | 1,393,472 | 1,380,100 | 1,399,028 | 1 | 4 | 1,426,956 | 1,374,638 | 4 | |||||
Selected Balance Sheet Data (period-end) | |||||||||||||||
Debt securities | 542,993 | 533,565 | 505,826 | 501,207 | 476,421 | 2 | 14 | ||||||||
Loans | 862,827 | 852,300 | 861,572 | 887,637 | 920,082 | 1 | (6) | ||||||||
Allowance for credit losses for loans | 14,705 | 16,391 | 18,043 | 19,713 | 20,471 | (10) | (28) | ||||||||
Equity securities | 66,526 | 64,547 | 57,702 | 60,008 | 49,348 | 3 | 35 | ||||||||
Assets | 1,954,901 | 1,945,996 | 1,957,264 | 1,952,911 | 1,920,399 | - | 2 | ||||||||
Deposits | 1,470,379 | 1,440,472 | 1,437,119 | 1,404,381 | 1,383,215 | 2 | 6 | ||||||||
Headcount (#) (period-end) | 253,871 | 259,196 | 264,513 | 268,531 | 274,931 | (2) | (8) | ||||||||
Capital and other metrics (1) | |||||||||||||||
Risk-based capital ratios and components (2): | |||||||||||||||
Standardized Approach: | |||||||||||||||
CET1 | 11.6 % | 12.1 | 11.8 | 11.6 | 11.4 | ||||||||||
Tier 1 capital | 13.2 | 13.7 | 13.5 | 13.3 | 13.1 | ||||||||||
Total capital | 16.2 | 16.8 | 16.8 | 16.5 | 16.3 | ||||||||||
Risk-weighted assets (RWAs) (in billions) | $ | 1,219.1 | 1,188.7 | 1,179.0 | 1,193.7 | 1,185.6 | 3 | 3 | |||||||
Advanced Approach: | |||||||||||||||
CET1 | 12.4 % | 12.7 | 12.6 | 11.9 | 11.5 | ||||||||||
Tier 1 capital | 14.1 | 14.5 | 14.4 | 13.7 | 13.2 | ||||||||||
Total capital | 16.5 | 16.9 | 16.9 | 16.1 | 15.7 | ||||||||||
Risk-weighted assets (RWAs) (in billions) | $ | 1,138.3 | 1,126.5 | 1,109.4 | 1,158.4 | 1,172.0 | 1 | (3) | |||||||
Tier 1 leverage ratio | 8.4 % | 8.5 | 8.4 | 8.3 | 8.1 | ||||||||||
Supplementary Leverage Ratio (SLR) | 6.9 | 7.1 | 7.9 | 8.1 | 7.8 | ||||||||||
Total Loss Absorbing Capacity (TLAC) Ratio (3) | 23.7 | 25.1 | 25.2 | 25.7 | 25.8 | ||||||||||
Liquidity Coverage Ratio (LCR) (4) | 119 | 123 | 127 | 133 | 134 |
- Ratios and metrics for September 30, 2021, are preliminary estimates.
- See the tables on pages 27 and 28 for more information on Common Equity Tier 1 (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.
- Represents TLAC divided by the greater of RWAs determined under the Standardized and Advanced Approaches, which is our binding TLAC ratio.
- 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 | Sep 30, 2021 | Nine months ended | |||||||||||||
% Change from | |||||||||||||||
(in millions, except per share amounts) | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Sep 30, | Sep 30, | Sep 30, | % | |||||
2021 | 2021 | 2021 | 2020 | 2020 | 2021 | 2020 | 2021 | 2020 | Change | ||||||
Interest income | $ | 9,834 | 9,693 | 10,046 | 10,550 | 10,811 | 1 % | (9) | $ | 29,573 | 37,369 | (21)% | |||
Interest expense | 925 | 893 | 1,238 | 1,195 | 1,432 | 4 | (35) | 3,056 | 6,768 | (55) | |||||
Net interest income | 8,909 | 8,800 | 8,808 | 9,355 | 9,379 | 1 | (5) | 26,517 | 30,601 | (13) | |||||
Noninterest income | |||||||||||||||
Deposit-related fees | 1,416 | 1,342 | 1,255 | 1,333 | 1,299 | 6 | 9 | 4,013 | 3,888 | 3 | |||||
Lending-related fees | 365 | 362 | 361 | 356 | 352 | 1 | 4 | 1,088 | 1,025 | 6 | |||||
Investment advisory and other asset-based fees | 2,882 | 2,794 | 2,756 | 2,598 | 2,505 | 3 | 15 | 8,432 | 7,265 | 16 | |||||
Commissions and brokerage services fees | 525 | 580 | 636 | 589 | 568 | (9) | (8) | 1,741 | 1,795 | (3) | |||||
Investment banking fees | 547 | 570 | 568 | 486 | 441 | (4) | 24 | 1,685 | 1,379 | 22 | |||||
Card fees | 1,078 | 1,077 | 949 | 943 | 912 | - | 18 | 3,104 | 2,601 | 19 | |||||
Mortgage banking | 1,259 | 1,336 | 1,326 | 1,207 | 1,590 | (6) | (21) | 3,921 | 2,286 | 72 | |||||
Net gains (losses) from trading activities | 92 | 21 | 348 | (60) | 361 | 338 | (75) | 461 | 1,232 | (63) | |||||
Net gains on debt securities | 283 | - | 151 | 160 | 264 | NM | 7 | 434 | 713 | (39) | |||||
Net gains (losses) from equity securities | 869 | 2,696 | 392 | 884 | 649 | (68) | 34 | 3,957 | (219) | NM | |||||
Lease income | 322 | 313 | 315 | 224 | 333 | 3 | (3) | 950 | 1,021 | (7) | |||||
Other | 287 | 379 | 667 | 414 | 663 | (24) | (57) | 1,333 | 2,188 | (39) | |||||
Total noninterest income | 9,925 | 11,470 | 9,724 | 9,134 | 9,937 | (13) | - | 31,119 | 25,174 | 24 | |||||
Total revenue | 18,834 | 20,270 | 18,532 | 18,489 | 19,316 | (7) | (2) | 57,636 | 55,775 | 3 | |||||
Provision for credit losses | (1,395) | (1,260) | (1,048) | (179) | 769 | (11) | NM | (3,703) | 14,308 | NM | |||||
Noninterest expense | |||||||||||||||
Personnel | 8,690 | 8,818 | 9,558 | 8,948 | 8,624 | (1) | 1 | 27,066 | 25,863 | 5 | |||||
Technology, telecommunications and equipment | 741 | 815 | 844 | 838 | 791 | (9) | (6) | 2,400 | 2,261 | 6 | |||||
Occupancy | 738 | 735 | 770 | 826 | 851 | - | (13) | 2,243 | 2,437 | (8) | |||||
Operating losses | 540 | 303 | 213 | 621 | 1,219 | 78 | (56) | 1,056 | 2,902 | (64) | |||||
Professional and outside services | 1,417 | 1,450 | 1,388 | 1,664 | 1,760 | (2) | (19) | 4,255 | 5,042 | (16) | |||||
Leases (1) | 220 | 226 | 226 | 227 | 291 | (3) | (24) | 672 | 795 | (15) | |||||
Advertising and promotion | 153 | 132 | 90 | 138 | 144 | 16 | 6 | 375 | 462 | (19) | |||||
Restructuring charges | 1 | (4) | 13 | 781 | 718 | 125 | (100) | 10 | 718 | (99) | |||||
Other | 803 | 866 | 887 | 759 | 831 | (7) | (3) | 2,556 | 2,348 | 9 | |||||
Total noninterest expense | 13,303 | 13,341 | 13,989 | 14,802 | 15,229 | - | (13) | 40,633 | 42,828 | (5) | |||||
Income (loss) before income tax expense (benefit) | 6,926 | 8,189 | 5,591 | 3,866 | 3,318 | (15) | 109 | 20,706 | (1,361) | NM | |||||
Income tax expense (benefit) | 1,521 | 1,445 | 901 | 574 | (83) | 5 | NM | 3,867 | (1,731) | NM | |||||
Net income before noncontrolling interests | 5,405 | 6,744 | 4,690 | 3,292 | 3,401 | (20) | 59 | 16,839 | 370 | NM | |||||
Less: Net income from noncontrolling interests | 283 | 704 | 54 | 201 | 185 | (60) | 53 | 1,041 | 84 | NM | |||||
Wells Fargo net income | $ | 5,122 | 6,040 | 4,636 | 3,091 | 3,216 | (15) | 59 | $ | 15,798 | 286 | NM | |||
Less: Preferred stock dividends and other | 335 | 297 | 380 | 350 | 315 | 13 | 6 | 1,012 | 1,241 | (18) | |||||
Wells Fargo net income (loss) applicable to common stock | $ | 4,787 | 5,743 | 4,256 | 2,741 | 2,901 | (17) | 65 | $ | 14,786 | (955) | NM | |||
Per share information | |||||||||||||||
Earnings (loss) per common share | $ | 1.18 | 1.39 | 1.03 | 0.66 | 0.70 | (15) | 69 | $ | 3.60 | (0.23) | NM | |||
Diluted earnings (loss) per common share | 1.17 | 1.38 | 1.02 | 0.66 | 0.70 | (15) | 67 | 3.57 | (0.23) | NM |
NM - Not meaningful
- Represents expenses for assets we lease to customers.
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Wells Fargo & Company published this content on 14 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2021 11:11:03 UTC.