EX-99.1 2 wfc4qer1-15x2016exx991.htm EXHIBIT 99.1 8-K
Exhibit 99.1


 
 
 
 
 
 
 
Media
 
Investors
 
 
 
 
Ancel Martinez
 
Jim Rowe
 
 
 
 
415-222-3858
 
415-396-8216
Friday, January 15, 2016
WELLS FARGO REPORTS $5.7 BILLION IN QUARTERLY NET INCOME; DILUTED EPS OF $1.03
2015 Net Income of $23.0 Billion; Diluted EPS of $4.15

Full year 2015:
Net income of $23.0 billion, consistent with 2014
Diluted earnings per share (EPS) of $4.15, up 1 percent
Revenue of $86.1 billion, up 2 percent
Pre-tax pre-provision profit1 of $36.3 billion, up 3 percent
Return on assets (ROA) of 1.32 percent and return on equity (ROE) of 12.68 percent
Returned $12.6 billion to shareholders through dividends and net share repurchases
Fourth quarter 2015:
Net income of $5.7 billion, stable compared with fourth quarter 2014
Diluted EPS of $1.03, up 1 percent
Revenue of $21.6 billion, up 1 percent
Pre-tax pre-provision profit1 of $9.2 billion, up 4 percent
ROA of 1.27 percent and ROE of 12.23 percent
Total average loans of $912.3 billion, up $62.9 billion, or 7 percent
Total average deposits of $1.2 trillion, up $67.0 billion, or 6 percent
Net charge-off rate of 0.36 percent (annualized), up from 0.34 percent
Nonaccrual loans down $1.5 billion, or 11 percent
No reserve build or release2, compared with a $250 million release in fourth quarter 2014
Common Equity Tier 1 ratio (fully phased-in) of 10.7 percent3
Period-end common shares outstanding down 16.3 million from third quarter 2015
1 Pre-tax pre-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 Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.
3 See table on page 35 for more information on Common Equity Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules.
 




- 2 -

Selected Financial Information
 
 
 
Quarter ended
 
Year ended Dec. 31,
 
 
Dec 31,
2015

 
Sep 30,
2015

 
Dec 31,
2014

2015

 
2014

Earnings
 
 
 
 
 
 
 
 
Diluted earnings per common share
$
1.03

 
1.05

 
1.02

4.15

 
4.10

Wells Fargo net income (in billions)
5.71

 
5.80

 
5.71

23.03

 
23.06

Return on assets (ROA)
1.27
%
 
1.32

 
1.36

1.32

 
1.45

Return on equity (ROE)
12.23

 
12.62

 
12.84

12.68

 
13.41

Asset Quality
 
 
 
 
 
 
 
 
Net charge-offs (annualized) as a % of average total loans
0.36
%
 
0.31

 
0.34

0.33

 
0.35

Allowance for credit losses as a % of total loans
1.37

 
1.39

 
1.53

1.37

 
1.53

Allowance for credit losses as a % of annualized net charge-offs
380

 
450

 
452

433

 
447

Other
 
 
 
 
 
 
 
 
Revenue (in billions)
$
21.6

 
21.9

 
21.4

86.1

 
84.3

Efficiency ratio
57.4
%
 
56.7

 
59.0

57.8

 
58.1

Average loans (in billions)
$
912.3

 
895.1

 
849.4

885.4

 
834.4

Average deposits (in billions)
1,216.8

 
1,198.9

 
1,149.8

1,194.1

 
1,114.1

Net interest margin
2.92
%
 
2.96

 
3.04

2.95

 
3.11


SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $4.15 for 2015, compared with $4.10 in 2014. Full year net income was $23.0 billion, compared with $23.1 billion in 2014. For fourth quarter 2015, net income was $5.7 billion, or $1.03 per share, compared with $5.7 billion, or $1.02 per share, for fourth quarter 2014, and $5.8 billion, or $1.05 per share, for third quarter 2015.

Chairman and CEO John Stumpf said, “Full year and fourth quarter 2015 results demonstrated the benefit of our diversified business model as we again generated strong financial results, maintained our risk discipline and continued to invest across the company for future growth. We remained focused on the building blocks of long-term shareholder value, with continued growth in loans, deposits and capital. For the 5th consecutive year, we returned more capital to shareholders than the prior year. I am proud of the dedication of our team members and their focus on helping our customers succeed financially."

Chief Financial Officer John Shrewsberry added, “Our performance in the fourth quarter reflected a continuation of the solid results we generated all year and the ability of our diversified business model to perform consistently across cycles. Compared with the prior quarter, we increased deposits and grew both commercial and consumer loans, while maintaining our credit and pricing discipline. Net interest income increased as we benefited from broad-based earning asset growth, and fee income remained diversified. We continued to have strong liquidity and capital levels, and our net payout ratio4 was stable at 59 percent."

4 Net payout ratio means the ratio of (i) common stock dividends and share repurchases less issuances and stock compensation-related items, divided by (ii) net income applicable to common stock.



- 3 -

Net Interest Income
Net interest income in the fourth quarter increased $131 million from third quarter 2015 to $11.6 billion, largely driven by growth in earning assets. Income from variable sources, including periodic dividends, loan recoveries and fees included in interest income, also increased in the quarter. Net interest income also benefited modestly from the increase in short-term interest rates late in the quarter. These benefits to net interest income were partially offset by reduced income from seasonally lower balances of mortgages held-for-sale and increased interest expense from higher debt balances.

Net interest margin was 2.92 percent, down 4 basis points from third quarter 2015. Income from variable sources improved the net interest margin by approximately 2 basis points linked-quarter, but was more than offset by customer-driven deposit growth, which had a minimal impact to net interest income but was dilutive to the net interest margin by 3 basis points. All other growth, mix and repricing reduced the margin by 3 basis points, largely driven by increased debt balances, including funding raised in anticipation of closing the previously announced acquisitions of certain commercial lending businesses and assets from GE Capital.

Noninterest Income
Noninterest income in the fourth quarter was $10.0 billion, compared with $10.4 billion in third quarter 2015, down due to lower equity investment gains, which were elevated in the third quarter. Noninterest income benefited from higher debt securities gains, trading income (reflecting higher deferred compensation plan investment results which were largely offset in employee benefits expense), commercial real estate brokerage fees, mortgage banking, investment banking, card fees and insurance fees.

Mortgage banking noninterest income was $1.7 billion, up $71 million from third quarter, primarily driven by higher net servicing income. During the fourth quarter, residential mortgage loan originations were $47 billion, down $8 billion linked quarter on seasonality. The production margin on residential held-for-sale mortgage loan originations5 was 1.83 percent, compared with 1.88 percent in third quarter. Net mortgage servicing rights (MSRs) results were $417 million, compared with $253 million in third quarter 2015.

Noninterest Expense
Noninterest expense in the fourth quarter was $12.4 billion, stable compared with third quarter 2015. Fourth quarter expenses included typically higher equipment, outside professional services and advertising, as well as an increase in deferred compensation expense (included in employee benefits expense and largely offset in revenue). These higher expenses were offset by lower operating losses, commissions and incentive compensation, as well as lower charitable donations, which were elevated in the third quarter due to a $126 million contribution to the Wells Fargo Foundation. Foreclosed asset expense also declined in the quarter, driven primarily by commercial real estate recoveries. The efficiency ratio was 57.4 percent in fourth quarter 2015, compared with 56.7 percent in the prior quarter. The Company expects to operate at the higher end of its targeted efficiency ratio range of 55 to 59 percent for full year 2016.
5 Production margin represents net gains on residential mortgage loan origination/sales activities divided by total residential held-for-sale mortgage originations. See the Selected Five Quarter Residential Mortgage Production Data table on page 40 for more information.



- 4 -

Loans
Total loans were $916.6 billion at December 31, 2015, up $13.3 billion from September 30, 2015. Fourth quarter loan growth was broad-based across all portfolios (other than real estate 1-4 family junior lien mortgages) and did not include any loan portfolio acquisitions. Core loan growth was $15.4 billion, or 2 percent, as non-strategic/liquidating portfolios declined $2.1 billion in the quarter. Total average loans were $912.3 billion in the fourth quarter, up $17.2 billion from the prior quarter.

 
December 31, 2015
 
 
September 30, 2015
 
(in millions)
Core

 
Non-strategic
and liquidating (a)

 
Total 

 
Core

 
Non-strategic
and liquidating

 
Total 

Commercial
$
456,115

 
468

 
456,583

 
446,832

 
506

 
447,338

Consumer
408,489

 
51,487

 
459,976

 
402,363

 
53,532

 
455,895

Total loans
$
864,604

 
51,955

 
916,559

 
849,195

 
54,038

 
903,233

Change from prior quarter:
$
15,409

 
(2,083
)
 
13,326

 
17,095

 
(2,321
)
 
14,774

(a)
See table on page 32 for additional information on non-strategic/liquidating loan portfolios. Management believes that the above information provides useful disclosure regarding the Company’s ongoing loan portfolios.

Investment Securities
Investment securities were $347.6 billion at December 31, 2015, up $2.5 billion from third quarter. The Company purchased approximately $25 billion of securities (mostly federal agency mortgage-backed securities and U.S. Treasury securities), which were offset by maturities, amortization and sales.

Net unrealized available-for-sale securities gains of $3.0 billion at December 31, 2015, declined from $4.9 billion at September 30, 2015, primarily due to rising rates and realized gains on debt and equity securities.

Deposits
Total average deposits for fourth quarter 2015 were $1.2 trillion, up 6 percent from a year ago, driven by both commercial and consumer growth. The average deposit cost for fourth quarter 2015 was 8 basis points, which was down 1 basis point from a year ago and unchanged from the prior quarter. The increase in deposits reflected strong account growth as the number of primary consumer checking customers6 increased 5.6 percent year-over-year7 and primary small business and business banking checking customers6 increased 4.8 percent year-over-year7.

Capital
Capital levels remained strong in the fourth quarter, with Common Equity Tier 1 (fully phased-in) of $142.5 billion, or 10.7 percent3. In fourth quarter 2015, the Company purchased 27.0 million shares of its common stock and entered into a $500 million forward repurchase transaction for an additional 9.2 million shares which settled early in first quarter 2016. The Company paid a quarterly common stock dividend of $0.375 per share, up from $0.35 per share a year ago.

6 Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.
7 Data as of November 2015, comparisons with November 2014.



- 5 -

Credit Quality
“The trend of strong credit results continued in the fourth quarter," said Chief Risk Officer Mike Loughlin. "The quarterly loss rate (annualized) remained low at 0.36 percent and nonperforming assets declined by $497 million, or 15 percent (annualized), from the prior quarter. The allowance for credit losses in the fourth quarter was stable (no reserve build or release) as continued credit quality improvements in the residential real estate portfolio were offset by higher commercial reserves reflecting continued deterioration within the energy sector. Future allowance levels may increase or decrease based on a variety of factors, including loan growth, portfolio performance and general economic conditions.”

Net Loan Charge-offs
The quarterly loss rate (annualized) of 0.36 percent reflected commercial losses of 0.16 percent and consumer losses of 0.56 percent. Credit losses were $831 million in fourth quarter 2015, compared with $703 million in the third quarter, mainly due to $90 million in higher oil and gas portfolio losses, as well as seasonal increases in the non-real estate consumer portfolios.
Net Loan Charge-Offs
 
Quarter ended
 
 
December 31, 2015
 
 
September 30, 2015
 
 
June 30, 2015
 
($ in millions)
Net loan 
charge- 
offs 

 
As a % of 
average 
loans (a) 

 
Net loan 
charge- 
offs 

 
As a % of 
average 
loans (a) 

 
Net loan 
charge- 
offs 

 
As a % of 
average 
loans (a) 

Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
215

 
0.29
 %
 
$
122

 
0.17
 %
 
$
81

 
0.12
 %
Real estate mortgage
(19
)
 
(0.06
)
 
(23
)
 
(0.08
)
 
(15
)
 
(0.05
)
Real estate construction
(10
)
 
(0.18
)
 
(8
)
 
(0.15
)
 
(6
)
 
(0.11
)
Lease financing
1

 
0.01

 
3

 
0.11

 
2

 
0.06

Total commercial
187

 
0.16

 
94

 
0.08

 
62

 
0.06

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Real estate 1-4 family first mortgage
50

 
0.07

 
62

 
0.09

 
67

 
0.10

Real estate 1-4 family junior lien mortgage
70

 
0.52

 
89

 
0.64

 
94

 
0.66

Credit card
243

 
2.93

 
216

 
2.71

 
243

 
3.21

Automobile
135

 
0.90

 
113

 
0.76

 
68

 
0.48

Other revolving credit and installment
146

 
1.49

 
129

 
1.35

 
116

 
1.26

Total consumer
644

 
0.56

 
609

 
0.53

 
588

 
0.53

Total
$
831

 
0.36
 %
 
$
703

 
0.31
 %
 
$
650

 
0.30
 %
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 31 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.




- 6 -

Nonperforming Assets
Nonperforming assets declined by $497 million from third quarter 2015 to $12.8 billion. Nonaccrual loans decreased $155 million to $11.4 billion driven by improvements in commercial and consumer real estate portfolios, partially offset by an increase in commercial and industrial nonaccrual loans, primarily related to deterioration in the oil and gas portfolio. Foreclosed assets were $1.4 billion, down from $1.8 billion in third quarter 2015.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
 
 
December 31, 2015
 
 
September 30, 2015
 
 
June 30, 2015
 
($ in millions)
Total 
balances 

 
As a % of 
total 
loans 

 
Total balances 

 
As a 
% of 
total 
loans 

 
Total 
balances 

 
As a 
% of 
total 
loans 

Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
1,363

 
0.45
%
 
$
1,031

 
0.35
%
 
$
1,079

 
0.38
%
Real estate mortgage
969

 
0.79

 
1,125

 
0.93

 
1,250

 
1.04

Real estate construction
66

 
0.30

 
151

 
0.70

 
165

 
0.77

Lease financing
26

 
0.21

 
29

 
0.24

 
28

 
0.23

Total commercial
2,424

 
0.53

 
2,336

 
0.52

 
2,522

 
0.58

Consumer:
 
 
 
 
 
 
 
 
 
 

Real estate 1-4 family first mortgage
7,293

 
2.66

 
7,425

 
2.74

 
8,045

 
3.00

Real estate 1-4 family junior lien mortgage
1,495

 
2.82

 
1,612

 
2.95

 
1,710

 
3.04

Automobile
121

 
0.20

 
123

 
0.21

 
126

 
0.22

Other revolving credit and installment
49

 
0.13

 
41

 
0.11

 
40

 
0.11

Total consumer
8,958

 
1.95

 
9,201

 
2.02

 
9,921

 
2.20

Total nonaccrual loans
11,382

 
1.24

 
11,537

 
1.28

 
12,443

 
1.40

Foreclosed assets:
 
 
 
 
 
 
 
 
 
 
 
Government insured/guaranteed
446

 
 
 
502

 
 
 
588

 
 
Non-government insured/guaranteed
979

 
 
 
1,265

 
 
 
1,370

 
 
Total foreclosed assets
1,425

 
 
 
1,767

 
 
 
1,958

 
 
Total nonperforming assets
$
12,807

 
1.40
%
 
$
13,304

 
1.47
%
 
$
14,401

 
1.62
%
Change from prior quarter:
 
 
 
 
 
 
 
 
 
 
 
Total nonaccrual loans
$
(155
)
 
 
 
$
(906
)
 
 
 
$
(67
)
 
 
Total nonperforming assets
(497
)
 
 
 
(1,097
)
 
 
 
(438
)
 
 
 

Loans 90 Days or More Past Due and Still Accruing
Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $981 million at December 31, 2015, up from $872 million at September 30, 2015. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgage loans and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $13.4 billion at December 31, 2015, down from $13.5 billion at September 30, 2015.

Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.5 billion at December 31, 2015, compared with $12.6 billion at September 30, 2015. The allowance coverage for total loans was 1.37 percent, compared with 1.39 percent in third quarter 2015. The allowance covered 3.8 times annualized fourth quarter net charge-offs, compared with 4.5 times in the prior quarter. The allowance coverage for nonaccrual loans was 110 percent at December 31, 2015, compared with 109 percent at September 30, 2015. “We believe the allowance was appropriate for losses inherent in the loan portfolio at December 31, 2015,” said Loughlin.



- 7 -

Business Segment Performance
Wells Fargo defines its operating segments by product type and customer segment. Effective fourth quarter 2015, we realigned our business banking and merchant payment services businesses from Community Banking to Wholesale Banking. Results for these operating segments were revised for prior periods to reflect the impact of this realignment. Segment net income for each of the three business segments was:
 
Quarter ended 
 
(in millions)
Dec 31,
2015

 
Sep 30,
2015

 
Dec 31,
2014

Community Banking
$
3,303

 
3,560

 
3,333

Wholesale Banking
2,104

 
1,925

 
2,095

Wealth and Investment Management
595

 
606

 
519


Community Banking offers a complete line of diversified financial products and services for consumers and small businesses including checking and savings accounts, credit and debit cards, and auto, student, and small business lending. Community Banking also offers investment, insurance and trust services in 39 states and D.C., and mortgage and home equity loans in all 50 states and D.C. through its Regional Banking and Wells Fargo Home Lending business units.
Selected Financial Information
 
Quarter ended 
 
(in millions)
Dec 31,
2015

 
Sep 30,
2015

 
Dec 31,
2014

Total revenue
$
12,330

 
12,933

 
12,158

Provision for credit losses
704

 
668

 
506

Noninterest expense
6,693

 
6,778

 
6,827

Segment net income
3,303

 
3,560

 
3,333

(in billions)
 
 
 
 
 
Average loans
482.2

 
477.0

 
469.6

Average assets
921.4

 
898.9

 
891.2

Average deposits
663.7

 
655.6

 
629.4


Community Banking reported net income of $3.3 billion, down $257 million, or 7 percent, from third quarter 2015. Revenue of $12.3 billion decreased $603 million, or 5 percent, from third quarter 2015 due to lower equity investment gains and lower other income, partially offset by gains on deferred compensation plan investments (offset in employee benefits expense) and higher gains on sales of debt securities. Noninterest expense decreased $85 million, or 1 percent, due to a donation to the Wells Fargo Foundation in the prior quarter, as well as lower operating losses, partially offset by higher deferred compensation plan expense (offset in trading revenue), project-related expense, and advertising costs. The provision for credit losses increased $36 million from the prior quarter primarily due to higher net charge-offs.

Net income was down $30 million, or 1 percent, from fourth quarter 2014. Revenue was up $172 million, or 1 percent, compared with a year ago due to higher net interest income, market sensitive revenue, primarily equity investment gains and gains on sale of debt securities, mortgage banking fees, deposit service charges, debit and credit card fees, and trust and investment fees, partially offset by a gain on sale of government guaranteed student loans in the prior year. Noninterest expense decreased $134 million, or 2 percent, from a year ago driven by lower foreclosed assets expense, partially offset by higher equipment expenses and operating losses. The provision for



- 8 -

credit losses increased $198 million from a year ago as the $48 million improvement in net charge-offs was more than offset by the absence of a reserve release in fourth quarter 2015.

Regional Banking
Retail Banking
Primary consumer checking customers6 up 5.6 percent year-over-year7
Debit card purchase volume8 of $73 billion in fourth quarter, up 8 percent year-over-year
Retail Bank household cross-sell ratio9 of 6.11 products per household, compared with 6.17 year-over-year7
Customers rated their overall experience, satisfaction with visit, and loyalty with Wells Fargo stores at all-time highs based on fourth quarter 2015 survey results
Online and Mobile Banking
26.4 million active online customers, up 7 percent year-over-year7 
16.2 million active mobile customers, up 14 percent year-over-year7 
Consumer Lending Group
Home Lending
Originations of $47 billion, down from $55 billion in prior quarter
Applications of $64 billion, down from $73 billion in prior quarter
Application pipeline of $29 billion at quarter end, down from $34 billion at September 30, 2015
Consumer Credit
Credit card purchase volume of $19 billion in fourth quarter, up 12 percent year-over-year
Credit card penetration in retail banking households rose to 43.4 percent, up from 41.5 percent in prior year
Highest ranking (A- grade) in Corporate Insight assessment of credit card issuer rewards redemption options (December 2015)
Auto originations of $7.6 billion in fourth quarter, down 9 percent from prior quarter and up 13 percent from prior year
8 Combined consumer and business debit card purchase volume dollars.
9 November 2015 Retail Bank household cross-sell ratio includes the impact of the sale of government guaranteed student loans in fourth quarter 2014.



- 9 -

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $5 million. Products and businesses include Business Banking, Middle Market Commercial Banking, Government and Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities, Principal Investments and Asset Backed Finance.
Selected Financial Information
 
Quarter ended
 
(in millions)
Dec 31,
2015

 
Sep 30,
2015

 
Dec 31,
2014

Total revenue
$
6,559

 
6,326

 
6,532

Provision (reversal of provision) for credit losses
126

 
36

 
(33
)
Noninterest expense
3,491

 
3,503

 
3,533

Segment net income
2,104

 
1,925

 
2,095

(in billions)
 
 
 
 
 
Average loans
417.0

 
405.6

 
369.0

Average assets
755.4

 
739.1

 
668.8

Average deposits
449.3

 
442.0

 
424.0


Wholesale Banking reported net income of $2.1 billion, up $179 million, or 9 percent, from third quarter 2015. Revenue of $6.6 billion increased $233 million, or 4 percent, from prior quarter. Net interest income increased $100 million, or 3 percent, primarily from broad based loan growth. Noninterest income increased $133 million, or 5 percent, on strong results in commercial real estate related businesses with growth in commercial real estate brokerage, multi-family capital, structured real estate and community lending, as well as higher investment banking fees, equity fund investments gains and crop insurance underwriting gains, partially offset by lower customer accommodation trading revenue. Noninterest expense decreased $12 million as higher variable compensation expenses were more than offset by lower operating losses and foreclosed assets expense. The provision for credit losses increased $90 million from prior quarter due to increased loan losses primarily related to the oil and gas portfolio.

Net income was up $9 million from fourth quarter 2014. Revenue increased $27 million from fourth quarter 2014, on $78 million, or 2 percent, growth in net interest income related to strong loan and deposit growth, offset by a $51 million, or 2 percent, decline in noninterest income. Noninterest income declined as higher commercial real estate brokerage, structured real estate, and multi-family capital results as well as increased equity fund investment gains and higher crop insurance underwriting gains were offset by lower customer accommodation trading revenues, energy portfolio write-downs and lower investment banking fees. Noninterest expense increased $42 million, or 1 percent, from a year ago primarily due to higher personnel expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses increased $159 million from a year ago due to increased loan losses primarily related to the oil and gas portfolio.

Average loans increased 13 percent from fourth quarter 2014, on broad-based growth, including asset-backed finance, commercial banking, commercial real estate, corporate banking, equipment finance, and structured real estate



- 10 -

Cross-sell of 7.3 products per relationship, up 0.1 from fourth quarter 201410
Treasury management revenue up 7 percent from fourth quarter 2014
Wells Fargo Treasury Management Services' Wholesale Lockbox Network ranked as fastest in the United States11  

Wealth and Investment Management (formerly Wealth, Brokerage and Retirement) provides a full range of personalized wealth management, investment and retirement products and services to clients across U.S. based businesses including Wells Fargo Advisors, The Private Bank, Abbot Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo Asset Management. We deliver financial planning, private banking, credit, investment management and fiduciary services to high-net worth and ultra-high-net worth individuals and families. We also serve customers’ brokerage needs, supply retirement and trust services to institutional clients and provide investment management capabilities delivered to global institutional clients through separate accounts and the Wells Fargo Funds.
Selected Financial Information
 
Quarter ended
 
(in millions)
Dec 31,
2015

 
Sep 30,
2015

 
Dec 31,
2014

Total revenue
$
3,947

 
3,878

 
3,913

Provision (reversal of provision) for credit losses
(6
)
 
(6
)
 
8

Noninterest expense
2,998

 
2,909

 
3,066

Segment net income
595

 
606

 
519

(in billions)
 
 
 
 
 
Average loans
63.0

 
61.1

 
54.8

Average assets
197.9

 
192.6

 
188.2

Average deposits
177.9

 
172.6

 
165.5


Wealth and Investment Management (WIM) reported net income of $595 million, down $11 million, or 2 percent, from third quarter 2015. Revenue of $3.9 billion increased $69 million, or 2 percent, from the prior quarter, primarily from higher gains on deferred compensation plan investments (offset in employee benefits expense) and higher net interest income, partially offset by lower asset-based fees. Noninterest expense increased $89 million, or 3 percent, from the prior quarter, primarily due to higher deferred compensation plan expense, partially offset by lower broker commissions. The provision for credit losses was flat from third quarter 2015.

Net income was up $76 million, or 15 percent, from fourth quarter 2014. Revenue increased $34 million, or 1 percent, from a year ago on growth in net interest income, partially offset by lower asset-based fees. Noninterest expense decreased $68 million, or 2 percent, from a year ago, due to lower broker commissions, as well as lower non-personnel expenses. The provision for credit losses decreased $14 million from a year ago.
Retail Brokerage 
Client assets of $1.4 trillion, down 2 percent from prior year
Managed account assets of $420 billion, down 1 percent from prior year, as lower market valuations were partially offset by net flows
10 Cross-sell reported on a one-quarter lag and does not reflect Business Banking relationships. Business Banking realigned from Community Banking to Wholesale Banking effective fourth quarter 2015.
11 Based on the 2015 Fall Phoenix-Hecht Mail Study. Phoenix-Hecht network rankings use all provider surveyed sites with an assumed locally disbursed check sample.



- 11 -

Strong loan growth, with average balances up 24 percent from prior year largely due to continued growth in non-conforming mortgage loans and security-based lending

Wealth Management
Client assets of $225 billion, flat from prior year
Average loan balances up 11 percent over prior year primarily driven by continued growth in non-conforming mortgage loans, commercial loans and security-based lending

Retirement
IRA assets of $354 billion, down 2 percent from prior year
Institutional Retirement plan assets of $334 billion, down 2 percent from prior year

Asset Management
Total assets under management of $490 billion, down $6 billion from fourth quarter 2014 as equity outflows and lower market valuations were partially offset by fixed income net client inflows

Brokerage and Wealth cross-sell ratio of 10.55 products per household, up from 10.49 a year ago7

Conference Call
The Company will host a live conference call on Friday, January 15, at 7 a.m. PT (10 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~011516.

A replay of the conference call will be available beginning at 10 a.m. PT (1 p.m. ET) on Friday, January 15 through Sunday, January 24. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #29684900. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~011516.




- 12 -

Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we may make forward-looking statements in our other documents filed or furnished with the SEC, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can” and similar references to future periods. In particular, forward-looking statements include, but are not limited to, statements we make about: (i) the future operating or financial performance of the Company, including our outlook for future growth; (ii) our noninterest expense and efficiency ratio; (iii) future credit quality and performance, including our expectations regarding future loan losses and allowance levels; (iv) the appropriateness of the allowance for credit losses; (v) our expectations regarding net interest income and net interest margin; (vi) loan growth or the reduction or mitigation of risk in our loan portfolios; (vii) future capital levels or targets and our estimated Common Equity Tier 1 ratio under Basel III capital standards; (viii) the performance of our mortgage business and any related exposures; (ix) the expected outcome and impact of legal, regulatory and legislative developments, as well as our expectations regarding compliance therewith; (x) future common stock dividends, common share repurchases and other uses of capital; (xi) our targeted range for return on assets and return on equity; (xii) the outcome of contingencies, such as legal proceedings; and (xiii) the Company’s plans, objectives and strategies.
Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:
 
current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and the overall slowdown in global economic growth;
our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;
the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;
negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;
our ability to realize our efficiency ratio target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;
the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;
significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased



- 13 -

funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our investment securities portfolio;
the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;
reputational damage from negative publicity, protests, fines, penalties and other negative consequences from regulatory violations and legal actions;
a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;
the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
fiscal and monetary policies of the Federal Reserve Board; and
the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014.
In addition to the above factors, we also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements (including under Basel capital standards), common stock issuance requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company’s Board of Directors, and may be subject to regulatory approval or conditions.
For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.




- 14 -

About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.8 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,700 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially.

# # #




- 15 -

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
 
 
 
 
Pages
 
 
Summary Information
 
 
 
Income
 
 
 
Balance Sheet
 
 
 
Loans
 
Changes in Allowance for Credit Losses
 
 
Equity
 
 
 
Operating Segments
 
 
 
Other
 



- 16 -

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
 
Quarter ended
 
 
% Change
Dec 31, 2015 from
 
 
Year ended
 
 
 
($ in millions, except per share amounts)
Dec 31,
2015

 
Sep 30,
2015

 
Dec 31,
2014

 
Sep 30,
2015

 
Dec 31,
2014

 
Dec 31,
2015

 
Dec 31,
2014

 
%
Change

For the Period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wells Fargo net income
$
5,709

 
5,796

 
5,709

 
(2
)%
 

 
$
23,028

 
23,057

 
 %
Wells Fargo net income applicable to common stock
5,337

 
5,443

 
5,382

 
(2
)
 
(1
)
 
21,604

 
21,821

 
(1
)
Diluted earnings per common share
1.03

 
1.05

 
1.02

 
(2
)
 
1

 
4.15

 
4.10

 
1

Profitability ratios (annualized):
 
 
 
 
 
 


 


 
 
 
 
 
 
Wells Fargo net income to average assets (ROA)
1.27
%
 
1.32

 
1.36

 
(4
)
 
(7
)
 
1.32

 
1.45

 
(9
)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)
12.23

 
12.62

 
12.84

 
(3
)
 
(5
)
 
12.68

 
13.41

 
(5
)
Efficiency ratio (1)
57.4

 
56.7

 
59.0

 
1

 
(3
)
 
57.8

 
58.1

 
(1
)
Total revenue
$
21,586

 
21,875

 
21,443

 
(1
)
 
1

 
$
86,057

 
84,347

 
2

Pre-tax pre-provision profit (PTPP) (2)
9,187

 
9,476

 
8,796

 
(3
)
 
4

 
36,283

 
35,310

 
3

Dividends declared per common share
0.375

 
0.375

 
0.35

 

 
7

 
1.475

 
1.35

 
9

Average common shares outstanding
5,108.5

 
5,125.8

 
5,192.5

 

 
(2
)
 
5,136.5

 
5,237.2

 
(2
)
Diluted average common shares outstanding
5,177.9

 
5,193.8

 
5,279.2

 

 
(2
)
 
5,209.8

 
5,324.4

 
(2
)
Average loans
$
912,280

 
895,095

 
849,429

 
2

 
7

 
$
885,432

 
834,432

 
6

Average assets
1,787,287

 
1,746,402

 
1,663,760

 
2

 
7

 
1,742,919

 
1,593,349

 
9

Average total deposits
1,216,809

 
1,198,874

 
1,149,796

 
1

 
6

 
1,194,073

 
1,114,144

 
7

Average consumer and small business banking deposits (3)
696,484

 
683,245

 
648,659

 
2

 
7

 
680,221

 
639,196

 
6

Net interest margin
2.92
%
 
2.96

 
3.04

 
(1
)
 
(4
)
 
2.95

 
3.11

 
(5
)
At Period End
 
 
 
 
 
 


 


 
 
 
 
 
 
Investment securities
$
347,555

 
345,074

 
312,925

 
1

 
11

 
$
347,555

 
312,925

 
11

Loans
916,559

 
903,233

 
862,551

 
1

 
6

 
916,559

 
862,551

 
6

Allowance for loan losses
11,545

 
11,659

 
12,319

 
(1
)
 
(6
)
 
11,545

 
12,319

 
(6
)
Goodwill
25,529

 
25,684

 
25,705

 
(1
)
 
(1
)
 
25,529

 
25,705

 
(1
)
Assets
1,787,632

 
1,751,265

 
1,687,155

 
2

 
6

 
1,787,632

 
1,687,155

 
6

Deposits
1,223,312

 
1,202,179

 
1,168,310

 
2

 
5

 
1,223,312

 
1,168,310

 
5

Common stockholders' equity
172,170

 
172,089

 
166,433

 

 
3

 
172,170

 
166,433

 
3

Wells Fargo stockholders’ equity
193,132

 
193,051

 
184,394

 

 
5

 
193,132

 
184,394

 
5

Total equity
194,025

 
194,043

 
185,262

 

 
5

 
194,025

 
185,262

 
5

Common shares outstanding
5,092.1

 
5,108.5

 
5,170.3

 

 
(2
)
 
5,092.1

 
5,170.3

 
(2
)
Book value per common share (4)
$
33.81

 
33.69

 
32.19

 

 
5

 
$
33.81

 
32.19

 
5

Common stock price:

 
 
 
 
 


 


 
 
 
 
 
 
High
56.34

 
58.77

 
55.95

 
(4
)
 
1

 
58.77

 
55.95

 
5

Low
49.51

 
47.75

 
46.44

 
4

 
7

 
47.75

 
44.17

 
8

Period end
54.36

 
51.35

 
54.82

 
6

 
(1
)
 
54.36

 
54.82

 
(1
)
Team members (active, full-time equivalent)
264,700

 
265,200

 
264,500

 

 

 
264,700

 
264,500

 

(1)
The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)
Pre-tax pre-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.
(3)
Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(4)
Book value per common share is common stockholders' equity divided by common shares outstanding.







- 17 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA
 
Quarter ended
 
($ in millions, except per share amounts)
Dec 31,
2015

 
Sep 30,
2015

 
Jun 30,
2015

 
Mar 31,
2015

 
Dec 31,
2014

For the Quarter
 
 
 
 
 
 
 
 
 
Wells Fargo net income
$
5,709

 
5,796

 
5,719

 
5,804

 
5,709

Wells Fargo net income applicable to common stock
5,337

 
5,443

 
5,363

 
5,461

 
5,382

Diluted earnings per common share
1.03

 
1.05

 
1.03

 
1.04

 
1.02

Profitability ratios (annualized):
 
 
 
 
 
 
 
 
 
Wells Fargo net income to average assets (ROA)
1.27
%
 
1.32

 
1.33

 
1.38

 
1.36

Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)
12.23

 
12.62

 
12.71

 
13.17

 
12.84

Efficiency ratio (1)
57.4

 
56.7

 
58.5

 
58.8

 
59.0

Total revenue
$
21,586

 
21,875

 
21,318

 
21,278

 
21,443

Pre-tax pre-provision profit (PTPP) (2)
9,187

 
9,476

 
8,849

 
8,771

 
8,796

Dividends declared per common share
0.375

 
0.375

 
0.375

 
0.35

 
0.35

Average common shares outstanding
5,108.5

 
5,125.8

 
5,151.9

 
5,160.4

 
5,192.5

Diluted average common shares outstanding
5,177.9

 
5,193.8

 
5,220.5

 
5,243.6

 
5,279.2

Average loans
$
912,280

 
895,095

 
870,446

 
863,261

 
849,429

Average assets
1,787,287

 
1,746,402

 
1,729,278

 
1,707,798

 
1,663,760

Average total deposits
1,216,809

 
1,198,874

 
1,185,304

 
1,174,793

 
1,149,796

Average consumer and small business banking deposits (3)
696,484

 
683,245

 
674,889

 
665,896

 
648,659

Net interest margin
2.92
%
 
2.96

 
2.97

 
2.95

 
3.04

At Quarter End
 
 
 
 
 
 
 
 
 
Investment securities
$
347,555

 
345,074

 
340,769

 
324,736

 
312,925

Loans
916,559

 
903,233

 
888,459

 
861,231

 
862,551

Allowance for loan losses
11,545

 
11,659

 
11,754

 
12,176

 
12,319

Goodwill
25,529

 
25,684

 
25,705

 
25,705

 
25,705

Assets
1,787,632

 
1,751,265

 
1,720,617

 
1,737,737

 
1,687,155

Deposits
1,223,312

 
1,202,179

 
1,185,828

 
1,196,663

 
1,168,310

Common stockholders' equity
172,170

 
172,089

 
169,596

 
168,834

 
166,433

Wells Fargo stockholders’ equity
193,132

 
193,051

 
189,558

 
188,796

 
184,394

Total equity
194,025

 
194,043

 
190,676

 
189,964

 
185,262

Common shares outstanding
5,092.1

 
5,108.5

 
5,145.2

 
5,162.9

 
5,170.3

Book value per common share (4)
$
33.81

 
33.69

 
32.96

 
32.70

 
32.19

Common stock price:
 
 
 
 
 
 
 
 
 
High
56.34

 
58.77

 
58.26

 
56.29

 
55.95

Low
49.51

 
47.75

 
53.56

 
50.42

 
46.44

Period end
54.36

 
51.35

 
56.24

 
54.40

 
54.82

Team members (active, full-time equivalent)
264,700

 
265,200

 
265,800

 
266,000

 
264,500

(1)
The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)
Pre-tax pre-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.
(3)
Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(4)
Book value per common share is common stockholders' equity divided by common shares outstanding.





- 18 -

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
 
Quarter ended December 31,
 
 
%

 
Year ended December 31,
 
 
%

(in millions, except per share amounts)
2015

 
2014

 
Change

 
2015

 
2014

 
Change

Interest income
 
 
 
 
 
 
 
 
 
 
 
Trading assets
$
558

 
477

 
17
 %
 
$
1,971

 
1,685

 
17
 %
Investment securities
2,323

 
2,150

 
8

 
8,937

 
8,438

 
6

Mortgages held for sale
176

 
187

 
(6
)
 
785

 
767

 
2

Loans held for sale
5

 
25

 
(80
)
 
19

 
78

 
(76
)
Loans
9,323

 
9,091

 
3

 
36,575

 
35,652

 
3

Other interest income
258

 
253

 
2

 
990

 
932

 
6

Total interest income
12,643

 
12,183

 
4

 
49,277

 
47,552

 
4

Interest expense
 
 
 
 
 
 
 
 
 
 
 
Deposits
241

 
269

 
(10
)
 
963

 
1,096

 
(12
)
Short-term borrowings
13

 
18

 
(28
)
 
64

 
59

 
8

Long-term debt
713

 
620

 
15

 
2,592

 
2,488

 
4

Other interest expense
88

 
96

 
(8
)
 
357

 
382

 
(7
)
Total interest expense
1,055

 
1,003

 
5

 
3,976

 
4,025

 
(1
)
Net interest income
11,588

 
11,180

 
4

 
45,301

 
43,527

 
4

Provision for credit losses
831

 
485

 
71

 
2,442

 
1,395

 
75

Net interest income after provision for credit losses
10,757

 
10,695

 
1

 
42,859

 
42,132

 
2

Noninterest income
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposit accounts
1,329

 
1,241

 
7

 
5,168

 
5,050

 
2

Trust and investment fees
3,511

 
3,705

 
(5
)
 
14,468

 
14,280

 
1

Card fees
966

 
925

 
4

 
3,720

 
3,431

 
8

Other fees
1,040

 
1,124

 
(7
)
 
4,324

 
4,349

 
(1
)
Mortgage banking
1,660

 
1,515

 
10

 
6,501

 
6,381

 
2

Insurance
427

 
382

 
12

 
1,694

 
1,655

 
2

Net gains from trading activities
99

 
179

 
(45
)
 
614

 
1,161

 
(47
)
Net gains on debt securities
346

 
186

 
86

 
952

 
593

 
61

Net gains from equity investments
423

 
372

 
14

 
2,230

 
2,380

 
(6
)
Lease income
145

 
127

 
14

 
621

 
526

 
18

Other
52

 
507

 
(90
)
 
464

 
1,014

 
(54
)
Total noninterest income
9,998

 
10,263

 
(3
)
 
40,756

 
40,820

 

Noninterest expense
 
 
 
 
 
 
 
 
 
 
 
Salaries
4,061

 
3,938

 
3

 
15,883

 
15,375

 
3

Commission and incentive compensation
2,457

 
2,582

 
(5
)
 
10,352

 
9,970

 
4

Employee benefits
1,042

 
1,124

 
(7
)
 
4,446

 
4,597

 
(3
)
Equipment
640

 
581

 
10

 
2,063

 
1,973

 
5

Net occupancy
725

 
730

 
(1
)
 
2,886

 
2,925

 
(1
)
Core deposit and other intangibles
311

 
338

 
(8
)
 
1,246

 
1,370

 
(9
)
FDIC and other deposit assessments
258

 
231

 
12

 
973

 
928

 
5

Other
2,905

 
3,123

 
(7
)
 
11,925

 
11,899

 

Total noninterest expense
12,399

 
12,647

 
(2
)
 
49,774

 
49,037

 
2

Income before income tax expense
8,356

 
8,311

 
1

 
33,841

 
33,915

 

Income tax expense
2,599

 
2,519

 
3

 
10,431

 
10,307

 
1

Net income before noncontrolling interests
5,757

 
5,792

 
(1
)
 
23,410

 
23,608

 
(1
)
Less: Net income from noncontrolling interests
48

 
83

 
(42
)
 
382

 
551

 
(31
)
Wells Fargo net income
$
5,709

 
5,709

 

 
$
23,028

 
23,057

 

Less: Preferred stock dividends and other
372

 
327

 
14

 
1,424

 
1,236

 
15

Wells Fargo net income applicable to common stock
$
5,337

 
5,382

 
(1
)
 
$
21,604

 
21,821

 
(1
)
Per share information
 
 
 
 
 
 
 
 
 
 
 
Earnings per common share
$
1.05

 
1.04

 
1

 
$
4.21

 
4.17

 
1

Diluted earnings per common share
1.03

 
1.02

 
1

 
4.15

 
4.10

 
1

Dividends declared per common share
0.375

 
0.35

 
7

 
1.475

 
1.35

 
9

Average common shares outstanding
5,108.5

 
5,192.5

 
(2
)
 
5,136.5

 
5,237.2

 
(2
)
Diluted average common shares outstanding
5,177.9

 
5,279.2

 
(2
)
 
5,209.8

 
5,324.4

 
(2
)



- 19 -

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
 
Quarter ended
 
(in millions, except per share amounts)
Dec 31,
2015

 
Sep 30,
2015

 
Jun 30,
2015

 
Mar 31,
2015

 
Dec 31,
2014

Interest income
 
 
 
 
 
 
 
 
 
Trading assets
$
558

 
485

 
483

 
445

 
477

Investment securities
2,323

 
2,289

 
2,181

 
2,144

 
2,150

Mortgages held for sale
176

 
223

 
209

 
177

 
187

Loans held for sale
5

 
4

 
5

 
5

 
25

Loans
9,323

 
9,216

 
9,098

 
8,938

 
9,091

Other interest income
258

 
228

 
250

 
254

 
253

Total interest income
12,643

 
12,445

 
12,226

 
11,963

 
12,183

Interest expense
 
 
 
 
 
 
 
 
 
Deposits
241

 
232

 
232

 
258

 
269

Short-term borrowings
13

 
12

 
21

 
18

 
18

Long-term debt
713

 
655

 
620

 
604

 
620

Other interest expense
88

 
89

 
83

 
97

 
96

Total interest expense
1,055

 
988

 
956

 
977

 
1,003

Net interest income
11,588

 
11,457

 
11,270

 
10,986

 
11,180

Provision for credit losses
831

 
703

 
300

 
608

 
485

Net interest income after provision for credit losses
10,757

 
10,754

 
10,970