Regulatory and Agency Capital Requirements (Tables)

6 Months Ended

Jun. 30, 2019

Regulatory And Agency Capital Requirements

Table 23.1 presents regulatory capital information for Wells Fargo & Company and the Bank using Basel III, which increased minimum required capital ratios, and introduced a minimum Common Equity Tier 1 (CET1) ratio. We must report the lower of our CET1, tier 1 and total capital ratios calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. The Standardized Approach applies assigned risk weights to broad risk categories, while the calculation of risk-weighted assets (RWAs) under the Advanced Approach differs by requiring applicable banks to utilize a risk-sensitive methodology, which relies upon the use of internal credit models, and includes an operational risk component. The

Basel III capital rules are being phased-in effective January 1, 2014, through the end of 2021. Beginning January 1, 2018, the requirements for calculating CET1 and tier 1 capital, along with RWAs, became fully phased-in. Accordingly, the information presented reflects fully phased-in CET1 capital, tier 1 capital, and RWAs, but reflects total capital still in accordance with Transition Requirements.

The Bank is an approved seller/servicer of mortgage loans and is required to maintain minimum levels of shareholders’ equity, as specified by various agencies, including the United States Department of Housing and Urban Development, GNMA, FHLMC and FNMA. At June 30, 2019, the Bank met these requirements. Other subsidiaries, including the Company’s insurance and broker-dealer subsidiaries, are also subject to various minimum capital levels, as defined by applicable industry regulations. The minimum capital levels for these subsidiaries, and related restrictions, are not significant to our consolidated operations.

Table 23.1: Regulatory Capital Information



	Wells Fargo & Company									Wells Fargo Bank, N.A.
	June 30, 2019						December 31, 2018			June 30, 2019			December 31, 2018
(in millions, except ratios)	Advanced Approach			Standardized Approach			Advanced Approach	Standardized Approach		Advanced Approach	Standardized Approach		Advanced Approach	Standardized Approach
Regulatory capital:
Common equity tier 1	$	149,183		149,183			146,363	146,363		146,505	146,505		142,685	142,685
Tier 1	170,675			170,675			167,866	167,866		146,505	146,505		142,685	142,685
Total	200,810			208,817			198,798	207,041		159,090	166,648		155,558	163,380
Assets:
Risk-weighted assets	$	1,182,838		1,246,683			1,177,350	1,247,210		1,059,642	1,144,959		1,058,653	1,154,182
Adjusted average assets (1)	1,871,806			1,871,806			1,850,299	1,850,299		1,654,994	1,654,994		1,652,009	1,652,009
Regulatory capital ratios:
Common equity tier 1 capital	12.61		%	11.97		*	12.43	11.74	*	13.83	12.80	*	13.48	12.36	*
Tier 1 capital	14.43			13.69		*	14.26	13.46	*	13.83	12.80	*	13.48	12.36	*
Total capital	16.98			16.75		*	16.89	16.60	*	15.01	14.56	*	14.69	14.16	*
Tier 1 leverage (1)	9.12			9.12			9.07	9.07		8.85	8.85		8.64	8.64
	Wells Fargo & Company									Wells Fargo Bank, N.A.
	June 30, 2019						December 31, 2018			June 30, 2019			December 31, 2018
Supplementary leverage: (2)
Total leverage exposure	$	2,202,607					2,174,564			1,964,107			1,957,276
Supplementary leverage ratio	7.75				%		7.72			7.46			7.29

*Denotes the lowest capital ratio as determined under the Advanced and Standardized Approaches.


(1)	The leverage ratio consists of Tier 1 capital divided by total average assets, excluding goodwill and certain other items.


(2)	The supplementary leverage ratio consists of Tier 1 capital divided by total leverage exposure. Total leverage exposure consists of total average assets, less goodwill and other permitted Tier 1 capital deductions (net of deferred tax liabilities), plus certain off-balance sheet exposures.

Minimum Required Regulatory Capital Ratios (Transition Requirements) [Table Text Block]

Table 23.2 presents the minimum required regulatory capital ratios under Transition Requirements to which the Company and the Bank were subject as of June 30, 2019, and December 31, 2018.

Table 23.2: Minimum Required Regulatory Capital Ratios – Transition Requirements (1)



	Wells Fargo & Company			Wells Fargo Bank, N.A.
	June 30, 2019		December 31, 2018	June 30, 2019	December 31, 2018
Regulatory capital ratios:
Common equity tier 1 capital	9.000	%	7.875	7.000	6.375
Tier 1 capital	10.500		9.375	8.500	7.875
Total capital	12.500		11.375	10.500	9.875
Tier 1 leverage	4.000		4.000	4.000	4.000
Supplementary leverage	5.000		5.000	6.000	6.000

(1)

At June 30, 2019, under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements for Wells Fargo & Company include a capital conservation buffer of 2.500% and a global systemically important bank (G-SIB) surcharge of 2.000%. Only the 2.500% capital conservation buffer applies to the Bank at June 30, 2019.