8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (date of earliest event reported):   July 15, 2003

WELLS FARGO & COMPANY

(Exact name of registrant as specified in its charter)

Delaware	001-2979	No. 41-0449260
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

420 Montgomery Street, San Francisco, California 94104

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:  1-800-411-4932

Item 7.	Exhibits
	(c)    Exhibits
	99    Press release dated July 15, 2003
Item 12.	Results of Operations and Financial Condition
	On July 15, 2003, Wells Fargo & Company issued a press release regarding its results of operations and financial condition for the quarterly period ended June 30, 2003. The text of the press release is included as Exhibit 99 to this report. The information included in the press release is considered to be “filed” under the Securities Exchange Act of 1934. The Company will include final financial statements and additional analyses for the quarterly period ended June 30, 2003, as part of its Form 10-Q covering that period.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Dated:  July 15, 2003	WELLS FARGO & COMPANY
	By:	/s/ Richard D. Levy
		Richard D. Levy Senior Vice President and Controller

TABLE OF CONTENTS

	Item 7. Exhibits
	Item 12. Results of Operations and Financial Condition
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99

EXHIBIT INDEX

Exhibit
Number	Description
99	Press release dated April 15, 2003

EX-99 3 f91446exv99.htm EXHIBIT 99

EXHIBIT 99

Media	Investors
Janis Smith (415) 396-7711	Bob Strickland (415) 396-0523

Tuesday, July 15, 2003
WELLS FARGO REPORTS RECORD
QUARTERLY EARNINGS PER SHARE

Second Quarter 2003 Highlights:

• Record diluted earnings per share of $.90, up 10 percent from prior year’s $.82

• Return on equity of 19.6 percent

• Record revenue up 12 percent from prior year

• Strong balance sheet growth

o Average loans up 17 percent from prior year

o Average earning assets up 23 percent from prior year

o Average core deposits up 15 percent from prior year

• Nonperforming assets down $102 million, or 5 percent, from prior year to .82 percent of total loans

Selected Financial Information	Second Quarter									Six months ended June 30,
							%									%
	2003			2002			Change			2003			2002			Change
Earnings
Diluted earning per share	$	.90		$	.82			10		$	1.78		$	1.62			10
Net income (in millions)		1,525			1,420			7			3,017			2,799			8
ROE		19.60	%		19.72	%		(1	)		19.69	%		19.86	%		(1	)
Asset Quality
Net charge-offs (annualized) as % of average loans		.81			.87			(7	)		.84			1.00			(16	)
Nonperforming assets as % of total loans		.82			1.01			(19	)		.82			1.01			(19	)
Other
Revenue (in millions)	$	6,755		$	6,017			12		$	13,263		$	11,972			11
Average loans (in billions)		208.9			179.2			17			204.1			175.7			16
Average earning assets (in billions)		319.8			259.9			23			310.4			261.0			19
Average core deposits (in billions)		205.4			179.4			15			201.1			178.5			13

For 2002, the first quarter transitional goodwill impairment charge of $276 million, accounted for as a cumulative effect of change in accounting principle, is excluded above and in the text and tables on pages 1-9 of this release.

SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $.90 for second quarter 2003, compared with $.82 in second quarter 2002, up 10 percent. Net income was a record $1.53 billion, up 7 percent from $1.42 billion in second quarter 2002. For the first half of 2003, net income was a record $3.02 billion, up 8 percent from the first six months of 2002, and diluted earnings per share were a record $1.78 for the first six months of 2003, up 10 percent from the prior year.

     “This was another great quarter of double-digit revenue and earnings per share growth - in fact, it was the eighth consecutive quarter of record revenue and profits,” said Chairman and CEO Dick Kovacevich. “This continued strong performance is a tribute to the outstanding efforts of our 139,000 talented team members, and to the diversity of businesses, revenue sources and markets. In view of the strength and consistency of our results, as well as the recent changes in tax laws, we are evaluating our dividend policy.

     In addition to earning more of our customers’ business, we’re also adding new customers through acquisitions. Our pending purchase of Seattle-based Pacific Northwest Bancorp will bring us more than $3 billion in assets in Washington and Oregon and a deeper presence in both the consumer and commercial markets in those states. We’re also responding to the financial services needs of our increasingly diverse markets. As the USA’s largest NAFTA bank, we’ve become the financial services company of choice for more and more Mexican nationals who are entering the mainstream of the U.S. economy in growing numbers. As the first large financial services company to promote acceptance of the matricula consular identification card, we’ve enabled more than 80,000 Mexican nationals to open bank accounts with Wells Fargo.

     As the largest financial services company headquartered in California, we hope the legislature can solve the current state budget crisis and pass a state budget before the end of next month. Like many other states, California needs a mandated rainy-day reserve fund for use when tax revenues decline dramatically. Our headquarters state has an outstanding reputation for its entrepreneurial spirit, creativity and diversity. There’s no reason why it cannot also be known as a great state in which to do business.”

Financial Performance
     Diluted earnings per share were $.90, up 10 percent from $.82 in second quarter 2002. Second quarter 2003 included $47 million of net losses from equity investments, or $27 million of net losses ($.01 per share loss) after bond gains of $20 million. Absent a significant reversal in the equity markets, the Company does not anticipate the need to record any additional losses in its private and public equity portfolios. “Second quarter results marked the eighth consecutive quarter of record, double-digit EPS growth,” said Chief Financial Officer Howard Atkins. “The continuation of strong, consistent earnings growth was accomplished within the context of several significant steps taken by the Company to further improve its overall financial position. In addition to the losses taken in our private and public equity portfolios, we reduced capitalized mortgage servicing rights by approximately $400 million, improved credit quality, and lengthened the duration of our funding to maintain a neutral interest rate profile and further build the Company’s long-term liquidity.”

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Revenue
     Revenue grew 12 percent from second quarter 2002, with year-over-year revenue growth accelerating from first quarter 2003 to second quarter 2003. On a linked-quarter basis, revenue increased 15 percent. Net interest income, up 11 percent year-over-year, reflected strong growth in loans and deposits, and noninterest income, up 14 percent, reflected solid growth in almost all fee-based businesses. “Virtually all of our businesses had a strong quarter of sales and revenue growth, including all of our consumer businesses, mortgage banking, corporate banking, asset-based lending, capital markets and insurance,” said Atkins. For the first half of 2003, revenue was up 11 percent over the prior year. As of June 30, 2003, the Company had net unrealized gains of $1.6 billion on equity and debt securities available for sale.

Loans
     Average loans of $209 billion for second quarter 2003 increased 17 percent from second quarter 2002. “The double-digit loan growth was generated primarily by the continued strong consumer demand for residential first mortgage and home equity loans and other revolving credit and installment loans, combined with increased cross-sell of these products to our banking households and mortgage servicing customers,” said Atkins. On a combined basis, average consumer loans and real estate first mortgage loans increased almost $29 billion, or 33 percent, from the same period last year. The Company also had strong loan growth in other key consumer areas, including personal loans and lines of credit, which saw funded balance growth of 46 percent in second quarter 2003, compared with second quarter 2002. Average commercial loans increased 2 percent from a year ago, and 4 percent (annualized), from first quarter 2003 due primarily to loan demand in small business and asset-based lending.

Deposits
     Average core deposits grew 15 percent year-over-year. Excluding mortgage escrow deposits, average core deposits of $185 billion grew $15 billion, or 9 percent, from second quarter 2002. Most of this adjusted growth was driven by a 14 percent increase in consumer and business noninterest-bearing checking balances. Average interest-bearing core deposits, including interest-bearing checking accounts, CDs, market rate accounts and other savings products, grew 7 percent.

Net Interest Income
     “Growth in net interest income continued to be strong and consistent, despite volatile interest rates in the second quarter,” said Atkins. The 11 percent year-over-year growth in net interest income was attributable to strong growth in loans and deposits. Since the additional loans were booked at lower yields due to a declining interest rate environment, the Company’s net interest margin was impacted by loan growth, with the doubling of the mortgage warehouse alone accounting for over half of the decline in the net interest margin.

     “In addition, during the past several quarters, the Company shortened the duration of its investment portfolio through sales and prepayments of longer-term mortgage-backed securities, and in the second quarter, the Company modestly lengthened the duration of its funding. While these activities had a negative impact on our current period revenue and

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margin, they will provide us with flexibility to add securities if longer-term interest rates continue to rise,” said Atkins.

Noninterest Income
     Noninterest income in second quarter 2003 increased 14 percent from a year ago. “We continued to see broad-based strength in almost all of our businesses’ fee income lines including mortgage banking fees, deposit service charges, credit cards, insurance and loan fees,” said Atkins. “In addition, in the latter part of the quarter, we began to see improvement in our trust and investment fees and commissions, reflecting the improved equity markets, as well as our efforts to grow this business line.”

     Second quarter mortgage originations of $135 billion set a new record for the Company. Origination fees were up strongly for the quarter, but were offset in part by $620 million of impairment provisioning which resulted in an approximate $400 million decline, from $4.2 billion to $3.8 billion, in capitalized mortgage servicing rights. At June 30, 2003, mortgage servicing rights were .73 percent of mortgage loans serviced for others. Given the record mortgage pipeline of $120 billion at the end of the second quarter, up from $89 billion at the end of the first quarter, the Company expects the mortgage warehouse to remain high in third quarter 2003.

Noninterest Expense
     Noninterest expense was $4.0 billion in second quarter 2003, compared with $3.4 billion in second quarter 2002, and $3.8 billion in first quarter 2003. “The strong growth in our first mortgage and home equity businesses accounted for 70 percent of our year-over-year expense growth and 80 percent of our linked-quarter expense growth,” said Atkins. “We continue to invest in our customers-including a variety of service initiatives-while continuing to make progress in reducing non-labor costs.”

Credit Quality
     “We are pleased with our second quarter credit results. Our various credit portfolios continued to demonstrate stability and performed within our expected range,” said Chief Credit Officer Dave Munio. Second quarter net credit losses were $424 million, or .81 percent of average loans outstanding (annualized), compared with $425 million, or .87 percent, for first quarter 2003. “Overall loss rates continued to improve in the second quarter, although dollar losses were essentially flat due to portfolio growth,” said Munio. “All commercial and consumer lines of business continued to demonstrate satisfactory credit results. The allowance for loan losses remained strong and covered annualized charge-offs and nonperforming assets each by more than two times.”

     Nonperforming assets at June 30, 2003 of $1.76 billion, or .82 percent of total loans, were down slightly from March 31, 2003 ($1.77 billion or .86 percent) and were $102 million, or 5 percent, lower than at June 30, 2002.

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Business Segment Performance
     Wells Fargo has three lines of business for management reporting: Community Banking, Wholesale Banking and Wells Fargo Financial. More financial information about the business segments is on pages 19 and 26.

     Community Banking offers a complete line of diversified financial products and services for consumers and small businesses including investment, insurance and trust services primarily in 23 midwestern and western states, and mortgage and home equity loans in all 50 states.

	Second Quarter						Six months ended June 30,
Selected Financial Information
					%						%
	2003		2002		Change		2003		2002		Change
(in millions)
Total revenue	$	4,876	$	4,282		14	$	9,588	$	8,541		12
Provision for loan losses		230		192		20		460		468		(2	)
Noninterest expense		3,022		2,542		19		5,861		5,005		17
Net income		1,059		1,003		6		2,117		1,987		7
Average loans (in billions)		140		114		23		136		111		23
Average assets (in billions)		270		218		24		263		220		20

• Core product sales up 9 percent from a year ago in regional banking

• Team member attrition down 11 percent from a year ago in regional banking

• Record residential mortgage originations of $135 billion

• Internet highlights:

o 4.2 million active online consumer customers, up 37 percent from a year ago

o New online brokerage accounts up 27 percent from a year ago

o 355,000 active online small business customers, up 56 percent from a year ago

o Ranked the top small business web site by Speer & Associates

o Online Merchant card processing volume grew 150 percent to $2.5 billion from Q2 2002

     Community Banking reported net income of $1,059 million in second quarter 2003, compared with $1,003 million for the same period in 2002, up 6 percent. Community Banking’s revenue was up 14 percent from the second quarter of last year. Net interest income increased by $317 million, or 12 percent, compared with second quarter 2002, primarily due to growth in consumer loans, mortgages held for sale and deposits. Noninterest income was up $277 million, or 17 percent, in second quarter 2003, compared with 2002. Noninterest expense increased by $480 million in second quarter 2003, or 19 percent, compared with the same period of 2002, due primarily to increased mortgage originations. The provision for loan losses increased by $38 million in second quarter 2003, compared with second quarter 2002, due to 23 percent growth in average loans.

     “Thanks to the dedication of our team, we continued to improve sales and service to our regional banking customers,” said John Stumpf, Group EVP, Community Banking. “Core deposits increased 14 percent this quarter compared with the same period last year. The number of consumer checking accounts increased by 6 percent this quarter, compared with the same period last year, as retention improved. Core product sales for the second quarter were up 9 percent and sales per platform banker exceeded 4.75 per day, an all time high. Retaining

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our team members is key to providing outstanding service. We’ve reduced our attrition rate of team members by 11 percent on a year-to-date basis in 2003, compared with the same period last year.”

     In May, the Company announced a definitive agreement to acquire Pacific Northwest Bancorp (NASDAQ: PNWB), a Seattle-based bank holding company with $3.1 billion in assets. “The acquisition will strengthen our business banking presence and distribution in the Pacific Northwest,” said Stumpf.

     “Wells Fargo again demonstrated its leadership in helping homeowners succeed financially and its support of homeownership through funding $135 billion of home loans during the quarter, up $32 billion from the first quarter,” said Mark Oman, Group EVP, Home and Consumer Finance. “The impact of the lowest interest rates in forty years and the flood of home financing activity were best reflected in the record $204 billion of applications taken by Home Mortgage during the second quarter.” Home Mortgage’s owned servicing portfolio showed solid growth, up $96 billion from second quarter 2002 in the quarter. The portfolio totaled $582 billion at the end of the quarter, with a weighted average note rate of 6.21 percent.

     Reflecting the declining mortgage rates from March 31, 2003 to June 30, 2003, an additional $620 million of impairment provision was recorded in the quarter. Mortgage servicing rights were carried at $3.8 billion on June 30, 2003, down $362 million from March 31, 2003 and down over $2.1 billion from June 30, 2002.

     “We continued to see very strong growth in our first and second mortgage loan portfolios, up 8 percent and 11 percent, respectively, in second quarter,” said Oman.

     Wholesale Banking provides businesses across the United States, predominantly with annual sales in excess of $10 million, with a complete line of commercial, corporate, treasury management, investment, insurance brokerage, capital markets and real estate banking products and services.

	Second Quarter							Six months ended June 30,
Selected Financial Information
					%							%
	2003		2002		Change			2003		2002		Change
(in millions)
Total revenue	$	1,216	$	1,201		1		$	2,420	$	2,351		3
Provision for loan losses		46		73		(37	)		100		158		(37	)
Noninterest expense		636		589		8			1,256		1,183		6
Net income		345		346		—			693		648		7
Average loans (in billions)		50		50		—			50		50		—
Average assets (in billions)		78		70		11			76		70		9

• Pace of new customer acquisition for middle market exceeding 2002

• Strong results for asset-based lending

• Deposit growth continued

• Commercial Electronic Office® portal activity continued to grow

     Wholesale Banking reported earnings of $345 million in second quarter 2003. Second quarter revenue was $1.2 billion, up 1 percent from second quarter 2002. Deposits were up 21

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percent in second quarter 2003 from second quarter 2002. Second quarter expenses were up 3 percent from first quarter 2003. Provision for credit losses in second quarter 2003 declined $27 million from a year ago and $7 million from first quarter 2003.

     “We continued to see trends consistent with prior quarters - including growth in deposits and flat loan demand,” said Dave Hoyt, Group EVP, Wholesale Banking. “Our efforts remain focused on new customer acquisition, cross sell with existing relationships and providing outstanding customer service. In the second quarter, areas of strength included our business development efforts for commercial relationships, asset-based lending and deposit growth.”

     The asset-based lending group increased revenue 26 percent from the second quarter 2002 and loans grew $1.4 billion over that same period. Foothill Capital Corporation, part of the asset-based lending group, changed its name to Wells Fargo Foothill, Inc. to better leverage the strength of the Wells Fargo brand and our broad array of products and services. The asset-based lending group now has more than $17 billion of direct and managed loan commitments for companies in industries including manufacturing, distribution, technology, retail, media, service, gaming, healthcare and specialty finance.

     Over 123,000 individual users representing 21,200 companies are now using Wells Fargo’s Commercial Electronic Office business portal, up 62 percent and 41 percent respectively from second quarter 2002. The CEO® portal is intended to make it easier for customers to do business with Wells Fargo. A few indicators that clients are finding it a great way to connect with us include:

• The ratio of users per company is up to 5.8 - a 16 percent increase from prior year

• Nearly 2 million Treasury Information reports were accessed in the quarter, double the number in second quarter 2002

• Over 54 percent of all foreign exchange transactions for Wells Fargo now go through the CEO platform

     As part of our continuing focus on improving customer service, we offer on-going user training sessions for the CEO business platform. In the second quarter, we reached a milestone with our 5,000^th customer completing training. We also became the first bank to provide online training in the second quarter. The new tutorials allow customers to receive interactive online training at their own pace, at a time that is convenient for them.

     Wells Fargo Financial offers consumer and commercial finance, leasing, private label credit cards and dealer financing in 47 states, Canada, and the Caribbean.

	Second Quarter						Six months ended June 30,
Selected Financial Information
					%						%
	2003		2002		Change		2003		2002		Change
(in millions)
Total revenue	$	645	$	539		20	$	1,259	$	1,071		18
Provision for loan losses		148		145		2		289		274		5
Noninterest expense		321		272		18		629		542		16
Net income		110		75		47		212		159		33
Average loans (in billions)		19		15		27		18		15		20
Average assets (in billions)		21		17		24		20		17		18

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• Investments in infrastructure and business models over the past several years now reflected in operating results

• Record receivables growth illustrates focus on real estate secured lending and auto finance, up $700 million and $600 million respectively

• Sound credit quality with losses remaining stable

     “Wells Fargo Financial had an excellent second quarter, with net income of $110 million and a record $1.7 billion increase in receivables,” said Dan Porter, chairman and chief executive officer.“With year-to-date receivables growth of $3.3 billion, or 20 percent, we surpassed $20 billion in receivables outstanding. This growth was due to outstanding performance by the teams in our consumer and auto finance businesses in the U.S., Canada and the Caribbean.”

Recorded Message
     A recorded message reviewing Wells Fargo’s results will be available at 8:30 a.m. Eastern time through July 18, 2003. Dial 800-642-1687 (domestic) or 706-645-9291 (international). Access code 1619669. The call is also available on the internet at www.wellsfargo.com/ir and www.vcall.com.

     Certain amounts for prior quarters have been reclassified to conform with the current financial statement presentation.

     The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

     This news release contains forward-looking statements about the Company. Broadly speaking, forward-looking statements consist of descriptions of plans or objectives for future operations, products or services, forecasts of revenues, earnings or other measures of economic performance, and assumptions underlying or relating to any of the foregoing. Because forward-looking statements discuss future events or conditions and not historical facts, they

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often include words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” or similar expressions. Examples of forward-looking statements in this release include the statement about the expected level of mortgage loans held for sale during the third quarter of 2003, the statement about the likelihood of future losses on equity investments, and various statements about future loan losses and credit quality.

     Do not unduly rely on forward-looking statements. They give the Company’s expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them to reflect changes that occur after that date.

     There are several factors—many beyond the Company’s control—that could cause results to differ significantly from the Company’s expectations. Factors such as credit, market, operational, liquidity, interest rate and other risks are described in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2003 and Annual Report on Form 10-K for the year ended December 31, 2002, including information incorporated into the Form 10-K from the Company’s 2002 Annual Report to Stockholders, filed as Exhibit 13 to the Form 10-K. See, for example, Items 2 and 3 of the Form 10-Q and “Financial Review—Risk Management” included in the 2002 Annual Report to Stockholders and incorporated by reference into the Form 10-K.

     Other factors described in the Form 10-Q and Form 10-K include · business and economic conditions · fiscal and monetary policies · legislation and regulation · disintermediation · competition generally and in light of the Gramm-Leach-Bliley Act · potential dividend restrictions · market acceptance and regulatory approval of new products and services · non-banking activities · reliance on other companies for infrastructure components · integration of acquired companies · attracting and retaining key personnel · stock price volatility. See, for example, “Factors That May Affect Future Results” in the Form 10-Q and “Regulation and Supervision” in the Form 10-K.

     Any factor described in this news release, in the Form 10-Q or in the Form 10-K, or in any information incorporated by reference therein, could, by itself or together with one or more other factors, adversely affect the Company’s business, earnings and/or financial condition.

     Wells Fargo & Company is a diversified financial services company with $370 billion in assets, providing banking, insurance, investments, mortgage and consumer finance from more than 5,600 stores and the internet (wellsfargo.com) across North America and elsewhere internationally.

Visit Wells Fargo at www.wellsfargo.com

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Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

			Quarter ended June 30,									Six months ended June 30,
										%									%
(in millions, except per share amounts)			2003			2002			Change			2003			2002			Change
For the Period
Before effect of change in accounting principle (1)
Net income			$	1,525		$	1,420			7	%	$	3,017		$	2,799			8	%
Diluted earnings per common share				.90			.82			10			1.78			1.62			10
Profitability ratios (annualized)
	Net income to average total assets (ROA)			1.63	%		1.83	%		(11	)		1.67	%		1.81	%		(8	)
	Net income applicable to common stock to average common stockholders’ equity (ROE)			19.60			19.72			(1	)		19.69			19.86			(1	)
After effect of change in accounting principle
Net income			$	1,525		$	1,420			7		$	3,017		$	2,523			20
Diluted earnings per common share				.90			.82			10			1.78			1.46			22
Profitability ratios (annualized)
	ROA			1.63	%		1.83	%		(11	)		1.67	%		1.63	%		2
	ROE			19.60			19.72			(1	)		19.69			17.90			10
Efficiency ratio (2)				58.9			56.6			4			58.4			56.2			4
Total revenue			$	6,755		$	6,017			12		$	13,263		$	11,972			11
Dividends declared per common share				.30			.28			7			.60			.54			11
Average common shares outstanding				1,675.7			1,710.4			(2	)		1,678.5			1,706.7			(2	)
Diluted average common shares outstanding				1,690.6			1,730.8			(2	)		1,692.1			1,725.1			(2	)
Average loans			$	208,912		$	179,232			17		$	204,080		$	175,700			16
Average assets				375,149			311,075			21			365,215			312,697			17
Average core deposits				205,428			179,394			15			201,140			178,526			13
Net interest margin				5.12	%		5.66	%		(10	)		5.21	%		5.67	%		(8	)
At Period End
Securities available for sale			$	24,625		$	37,132			(34	)	$	24,625		$	37,132			(34	)
Loans				215,392			185,001			16			215,392			185,001			16
Allowance for loan losses				3,894			3,883			—			3,894			3,883			—
Goodwill				9,803			9,724			1			9,803			9,724			1
Assets				369,645			314,802			17			369,645			314,802			17
Core deposits				210,722			181,807			16			210,722			181,807			16
Common stockholders’ equity				32,223			29,473			9			32,223			29,473			9
Stockholders’ equity				32,275			29,527			9			32,275			29,527			9
Capital ratios
	Common stockholders’ equity to assets			8.72	%		9.36	%		(7	)		8.72	%		9.36	%		(7	)
	Stockholders’ equity to assets			8.73			9.38			(7	)		8.73			9.38			(7	)
	Risk-based capital (3)
		Tier 1 capital		7.93			7.95			—			7.93			7.95			—
		Total capital		11.43			11.32			1			11.43			11.32			1
	Tier 1 leverage (3)			6.59			6.89			(4	)		6.59			6.89			(4	)
Book value per common share			$	19.20		$	17.24			11		$	19.20		$	17.24			11
Staff (active, full-time equivalent)				135,500			123,500			10			135,500			123,500			10
Common Stock Price
High			$	52.80		$	53.44			(1	)	$	52.80		$	53.44			(1	)
Low				45.01			48.12			(6	)		43.27			42.90			1
Period end				50.40			50.06			1			50.40			50.06			1

(1)	Change in accounting principle relates to transitional goodwill impairment charge recorded in first quarter 2002 related to the adoption of FAS 142.
(2)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(3)	The June 30, 2003 ratios are preliminary.

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Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

			Quarter ended June 30,									Six months ended June 30,
									%									%
(in millions, except per share amounts)			2003			2002			Change			2003			2002			Change
INTEREST INCOME
Securities available for sale			$	435		$	656			(34	)%	$	888		$	1,312			(32	)%
Mortgages held for sale				864			440			96			1,678			1,031			63
Loans held for sale				67			73			(8	)		134			142			(6	)
Loans				3,482			3,379			3			6,892			6,671			3
Other interest income				80			79			1			141			151			(7	)
		Total interest income		4,928			4,627			7			9,733			9,307			5
INTEREST EXPENSE
Deposits				425			483			(12	)		852			977			(13	)
Short-term borrowings				87			131			(34	)		182			305			(40	)
Long-term debt				341			344			(1	)		671			674			—
Guaranteed preferred beneficial interests in Company’s subordinated debentures				29			30			(3	)		56			58			(3	)
		Total interest expense		882			988			(11	)		1,761			2,014			(13	)
NET INTEREST INCOME				4,046			3,639			11			7,972			7,293			9
Provision for loan losses				424			410			3			849			900			(6	)
Net interest income after provision for loan losses				3,622			3,229			12			7,123			6,393			11
NONINTEREST INCOME
Service charges on deposit accounts				587			547			7			1,140			1,052			8
Trust and investment fees				470			472			—			929			934			(1	)
Credit card fees				257			223			15			501			424			18
Other fees				373			326			14			739			637			16
Mortgage banking				543			412			32			1,104			772			43
Insurance				289			269			7			556			532			5
Net gains on debt securities available for sale				20			45			(56	)		38			81			(53	)
Net losses from equity investments				(47	)		(58	)		(19	)		(145	)		(78	)		86
Other				217			142			53			429			325			32
		Total noninterest income		2,709			2,378			14			5,291			4,679			13
NONINTEREST EXPENSE
Salaries				1,155			1,106			4			2,296			2,182			5
Incentive compensation				503			362			39			950			719			32
Employee benefits				350			364			(4	)		769			693			11
Equipment				305			228			34			573			464			23
Net occupancy				288			274			5			585			543			8
Net losses on dispositions of premises and equipment				10			29			(66	)		6			27			(78	)
Other				1,369			1,042			31			2,570			2,104			22
		Total noninterest expense		3,980			3,405			17			7,749			6,732			15
INCOME BEFORE INCOME TAX EXPENSE AND EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE				2,351			2,202			7			4,665			4,340			7
Income tax expense				826			782			6			1,648			1,541			7
NET INCOME BEFORE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE				1,525			1,420			7			3,017			2,799			8
Cumulative effect of change in accounting principle				—			—			—			—			(276	)		(100	)
NET INCOME			$	1,525		$	1,420			7	%	$	3,017		$	2,523			20	%
NET INCOME APPLICABLE TO COMMON STOCK			$	1,524		$	1,419			7	%	$	3,015		$	2,521			20	%
EARNINGS PER COMMON SHARE BEFORE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
	Earnings per common share		$	.91		$	.83			10	%	$	1.80		$	1.64			10	%
	Diluted earnings per common share		$	.90		$	.82			10	%	$	1.78		$	1.62			10	%
EARNINGS PER COMMON SHARE
	Earnings per common share		$	.91		$	.83			10	%	$	1.80		$	1.48			22	%
	Diluted earnings per common share		$	.90		$	.82			10	%	$	1.78		$	1.46			22	%
DIVIDENDS DECLARED PER COMMON SHARE			$	.30		$	.28			7	%	$	.60		$	.54			11	%
Average common shares outstanding				1,675.7			1,710.4			(2	)%		1,678.5			1,706.7			(2	)%
Diluted average common shares outstanding				1,690.6			1,730.8			(2	)%		1,692.1			1,725.1			(2	)%

-11-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

											% Change
											Jun. 30, 2003 from
		Jun. 30,			Dec. 31,			Jun. 30,			Dec. 31,			Jun. 30,
(in millions, except shares)		2003			2002			2002			2002			2002
ASSETS
Cash and due from banks		$	16,045		$	17,820		$	14,701			(10	)%		9	%
Federal funds sold and securities purchased under resale agreements			2,768			3,174			3,741			(13	)		(26	)
Securities available for sale			24,625			27,947			37,132			(12	)		(34	)
Mortgages held for sale			58,716			51,154			24,685			15			138
Loans held for sale			7,009			6,665			5,165			5			36
Loans			215,392			196,634			185,001			10			16
Allowance for loan losses			3,894			3,862			3,883			1			—
	Net loans		211,498			192,772			181,118			10			17
Mortgage servicing rights, net			3,821			4,489			5,956			(15	)		(36	)
Premises and equipment, net			3,604			3,688			3,638			(2	)		(1	)
Goodwill			9,803			9,753			9,724			1			1
Other assets			31,756			31,797			28,942			—			10
	Total assets	$	369,645		$	349,259		$	314,802			6	%		17	%
LIABILITIES
Noninterest-bearing deposits		$	80,943		$	74,094		$	61,499			9	%		32	%
Interest-bearing deposits			149,941			142,822			131,712			5			14
	Total deposits		230,884			216,916			193,211			6			19
Short-term borrowings			23,883			33,446			30,107			(29	)		(21	)
Accrued expenses and other liabilities			20,705			18,334			17,159			13			21
Long-term debt			58,513			47,320			41,913			24			40
Guaranteed preferred beneficial interests in Company’s subordinated debentures			3,385			2,885			2,885			17			17
	Total liabilities		337,370			318,901			285,275			6			18
STOCKHOLDERS’ EQUITY
Preferred stock			375			251			341			49			10
Unearned ESOP shares			(323	)		(190	)		(287	)		70			13
	Total preferred stock		52			61			54			(15	)		(4	)
Common stock - $1-2/3 par value, authorized 6,000,000,000 shares; issued 1,736,381,025 shares			2,894			2,894			2,894			—			—
Additional paid-in capital			9,536			9,498			9,488			—			1
Retained earnings			21,320			19,394			17,530			10			22
Cumulative other comprehensive income			1,185			976			919			21			29
Treasury stock - 57,992,372 shares, 50,474,518 shares and 26,756,638 shares			(2,712	)		(2,465	)		(1,358	)		10			100
Total stockholders’ equity			32,275			30,358			29,527			6			9
Total liabilities and stockholders’ equity		$	369,645		$	349,259		$	314,802			6	%		17	%

-12-

Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

			Six months ended June 30,
(in millions)			2003			2002
Balance, beginning of period			$	30,358		$	27,214
Net income				3,017			2,523
Other comprehensive income (loss), net of tax:
	Change in foreign currency translation adjustments			20			4
	Change in valuation allowance related to:
		Investment securities and other retained interests		2			265
		Derivative instruments and hedging activities		187			(102	)
Common stock issued				388			321
Common stock issued for acquisitions				6			535
Common stock repurchased				(922	)		(426	)
Preferred stock released to ESOP				137			114
Preferred stock dividends				(2	)		(2	)
Common stock dividends				(1,009	)		(923	)
Change in Rabbi trust assets and similar arrangements (classified as treasury stock)				93			4
Balance, end of period			$	32,275		$	29,527

LOANS

				Jun. 30,		Dec. 31,		Jun. 30,
(in millions)				2003		2002		2002
Commercial				$	47,577	$	47,292	$	47,413
Real estate 1-4 family first mortgage					48,239		40,976		33,951
Other real estate mortgage					25,703		25,312		25,665
Real estate construction					7,853		7,804		7,853
Consumer:
	Real estate 1-4 family junior lien mortgage				36,695		31,290		28,151
	Credit card				7,626		7,455		6,781
	Other revolving credit and installment				30,943		26,353		24,504
		Total consumer			75,264		65,098		59,436
Lease financing					8,514		8,241		8,832
Foreign					2,242		1,911		1,851
			Total loans (net of unearned income)	$	215,392	$	196,634	$	185,001

-13-

Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES

						Quarter ended									Six months ended
						Jun. 30,			Mar. 31,			Jun. 30,			Jun. 30,			Jun. 30,
(in millions)						2003			2003			2002			2003			2002
Balance, beginning of period						$	3,887		$	3,862		$	3,842		$	3,862		$	3,761
Allowances related to business combinations/other							7			25			18			32			95
Provision for loan losses							424			425			410			849			900
Loan charge-offs:
	Commercial						(147	)		(153	)		(183	)		(300	)		(375	)
	Real estate 1-4 family first mortgage						(6	)		(9	)		(9	)		(14	)		(16	)
	Other real estate mortgage						(9	)		(2	)		(2	)		(10	)		(12	)
	Real estate construction						(3	)		(3	)		(3	)		(6	)		(23	)
	Consumer:
		Real estate 1-4 family junior lien mortgage					(22	)		(22	)		(18	)		(44	)		(30	)
		Credit card					(116	)		(112	)		(105	)		(228	)		(208	)
		Other revolving credit and installment					(198	)		(198	)		(170	)		(398	)		(383	)
			Total consumer				(336	)		(332	)		(293	)		(670	)		(621	)
	Lease financing						(24	)		(26	)		(20	)		(50	)		(46	)
	Foreign						(25	)		(20	)		(23	)		(45	)		(44	)
				Total loan charge-offs			(550	)		(545	)		(533	)		(1,095	)		(1,137	)
Loan recoveries:
	Commercial						37			36			53			75			84
	Real estate 1-4 family first mortgage						1			—			2			1			3
	Other real estate mortgage						3			2			5			5			9
	Real estate construction						4			5			7			9			8
	Consumer:
		Real estate 1-4 family junior lien mortgage					6			5			4			11			8
		Credit card					13			12			12			25			24
		Other revolving credit and installment					50			51			54			99			109
			Total consumer				69			68			70			135			141
	Lease financing						7			6			5			13			12
	Foreign						5			3			4			8			7
				Total loan recoveries			126			120			146			246			264
					Net loan charge-offs		(424	)		(425	)		(387	)		(849	)		(873	)
Balance, end of period						$	3,894		$	3,887		$	3,883		$	3,894		$	3,883
Net loan charge-offs (annualized) as a percentage of average total loans							.81	%		.87	%		.87	%		.84	%		1.00	%
Allowance as a percentage of total loans							1.81	%		1.89	%		2.10	%		1.81	%		2.10	%

-14-

Wells Fargo & Company and Subsidiaries
NONACCRUAL LOANS AND OTHER ASSETS

				Jun. 30,			Dec. 31,			Jun. 30,
(in millions)				2003			2002			2002
Nonaccrual loans:
	Commercial			$	787		$	796		$	934
	Real estate 1-4 family first mortgage				206			214			213
	Other real estate mortgage				263			192			200
	Real estate construction				61			93			147
	Consumer:
		Real estate 1-4 family junior lien mortgage			105			65			36
		Other revolving credit and installment			49			48			48
			Total consumer		154			113			84
	Lease financing				85			79			85
	Foreign				5			5			6
		Total nonaccrual loans			1,561			1,492			1,669
As a percentage of total loans					.7	%		.8	%		.9	%
Foreclosed assets					195			201			192
Real estate investments (1)					5			4			2
Total nonaccrual loans and other assets				$	1,761		$	1,697		$	1,863

(1) Represents the amount of real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if such assets were recorded as loans. Real estate investments totaled $9 million, $9 million and $13 million at June 30, 2003, December 31, 2002 and June 30, 2002, respectively.

-15-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

				Quarter ended June 30,									Six months ended June 30,
										%									%
(in millions)				2003			2002			Change			2003			2002			Change
Service charges on deposit accounts				$	587		$	547			7	%	$	1,140		$	1,052			8	%
Trust and investment fees:
	Trust, investment and IRA fees				322			341			(6	)		647			677			(4	)
	Commissions and all other fees				148			131			13			282			257			10
		Total trust and investment fees			470			472			—			929			934			(1	)
Credit card fees					257			223			15			501			424			18
Other fees:
	Cash network fees				46			45			2			88			92			(4	)
	Charges and fees on loans				186			138			35			366			271			35
	All other				141			143			(1	)		285			274			4
		Total other fees			373			326			14			739			637			16
Mortgage banking:
	Origination and other closing fees				334			204			64			610			424			44
	Servicing fees, net of amortization and provision for impairment				(741	)		(48	)		—			(1,184	)		(122	)		870
	Net gains on mortgage loan origination/sales activities				831			172			383			1,468			292			403
	All other				119			84			42			210			178			18
		Total mortgage banking			543			412			32			1,104			772			43
Insurance					289			269			7			556			532			5
Net gains on debt securities available for sale					20			45			(56	)		38			81			(53	)
Net losses from equity investments					(47	)		(58	)		(19	)		(145	)		(78	)		86
Net gains on sales of loans					5			2			150			5			8			(38	)
Net gains on dispositions of operations					—			—			—			27			3			800
All other					212			140			51			397			314			26
			Total	$	2,709		$	2,378			14	%	$	5,291		$	4,679			13	%

NONINTEREST EXPENSE

		Quarter ended June 30,							Six months ended June 30,
						%							%
(in millions)		2003		2002		Change			2003		2002		Change
Salaries		$	1,155	$	1,106		4	%	$	2,296	$	2,182		5	%
Incentive compensation			503		362		39			950		719		32
Employee benefits			350		364		(4	)		769		693		11
Equipment			305		228		34			573		464		23
Net occupancy			288		274		5			585		543		8
Net losses on dispositions of premises and equipment			10		29		(66	)		6		27		(78	)
Outside professional services			111		103		8			223		202		10
Contract services			250		107		134			405		224		81
Outside data processing			103		87		18			202		171		18
Telecommunications			86		78		10			164		170		(4	)
Travel and entertainment			92		83		11			177		158		12
Advertising and promotion			96		79		22			176		144		22
Postage			87		59		47			171		124		38
Stationery and supplies			57		55		4			111		113		(2	)
Insurance			69		61		13			119		112		6
Operating losses			64		30		113			120		76		58
Security			42		40		5			84		79		6
Core deposit intangibles			36		39		(8	)		72		79		(9	)
All other			276		221		25			546		452		21
	Total	$	3,980	$	3,405		17	%	$	7,749	$	6,732		15	%

-16-

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

							Quarter ended June 30,
							2003								2002
													Interest								Interest
							Average			Yields/			income/		Average			Yields/			income/
(in millions)							balance			rates			expense		balance			rates			expense
EARNING ASSETS
Federal funds sold and securities purchased under resale agreements							$	6,405			1.20	%	$	19	$	2,810			1.59	%	$	11
Debt securities available for sale (3):
	Securities of U.S. Treasury and federal agencies							1,288			4.67			14		1,798			5.65			25
	Securities of U.S. states and political subdivisions							2,063			9.09			43		2,148			8.27			43
	Mortgage-backed securities:
			Federal agencies					15,696			8.29			302		29,865			7.00			510
			Private collateralized mortgage obligations					1,994			6.91			33		2,562			7.29			46
				Total mortgage-backed securities				17,690			8.13			335		32,427			7.03			556
		Other debt securities (4)						3,167			7.87			59		2,982			7.63			56
					Total debt securities available for sale (4)			24,208			7.99			451		39,355			7.08			680
Mortgages held for sale (3)								65,493			5.28			864		26,561			6.60			440
Loans held for sale (3)								7,063			3.82			67		5,321			5.50			73
Loans:
		Commercial						47,484			6.11			723		46,628			6.94			807
		Real estate 1-4 family first mortgage						45,776			5.11			584		31,118			6.12			476
		Other real estate mortgage						25,661			5.51			352		25,711			6.26			401
		Real estate construction						7,983			5.24			104		7,935			5.80			115
		Consumer:
				Real estate 1-4 family junior lien mortgage				34,857			6.95			604		26,759			7.80			520
				Credit card				7,456			11.88			221		6,616			12.33			204
				Other revolving credit and installment				28,876			9.05			653		23,646			10.37			612
					Total consumer			71,189			8.32			1,478		57,021			9.39			1,336
		Lease financing						8,658			6.77			147		9,071			7.19			163
		Foreign						2,161			17.77			96		1,748			19.11			84
						Total loans (5)		208,912			6.68			3,484		179,232			7.56			3,382
Other								7,717			3.14			62		6,660			4.04			67
						Total earning assets	$	319,798			6.23			4,947	$	259,939			7.19			4,653
FUNDING SOURCES
Deposits:
		Interest-bearing checking					$	2,536			.31			2	$	2,694			.64			4
		Market rate and other savings						104,603			.69			179		92,725			.96			223
		Savings certificates						21,355			2.60			138		24,862			3.30			205
		Other time deposits						26,912			1.29			87		6,213			1.98			30
		Deposits in foreign offices						6,278			1.22			19		4,982			1.67			21
				Total interest-bearing deposits				161,684			1.05			425		131,476			1.47			483
Short-term borrowings								30,218			1.16			87		31,921			1.65			131
Long-term debt								51,677			2.64			341		41,234			3.34			344
Guaranteed preferred beneficial interests in Company’s subordinated debentures								3,215			3.63			29		2,885			4.20			30
				Total interest-bearing liabilities				246,794			1.43			882		207,516			1.91			988
Portion of noninterest-bearing funding sources								73,004			—			—		52,423			—			—
						Total funding sources	$	319,798			1.11			882	$	259,939			1.53			988
Net interest margin and net interest income on a taxable-equivalent basis (6)											5.12	%	$	4,065					5.66	%	$	3,665
NONINTEREST-EARNING ASSETS
Cash and due from banks							$	13,320							$	13,417
Goodwill								9,802								9,718
Other								32,229								28,001
						Total noninterest-earning assets	$	55,351							$	51,136
NONINTEREST-BEARING FUNDING SOURCES
Deposits							$	76,934							$	59,113
Other liabilities								20,192								15,536
Preferred stockholders’ equity								47								50
Common stockholders’ equity								31,182								28,860
Noninterest-bearing funding sources used to fund earning assets								(73,004	)							(52,423	)
						Net noninterest-bearing funding sources	$	55,351							$	51,136
TOTAL ASSETS							$	375,149							$	311,075

(1)	The average prime rate of the Company was 4.25% and 4.75% for the quarters ended June 30, 2003 and 2002, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.24% and 1.92% for the same periods, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for both periods presented.

-17-

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

					Six months ended June 30,
					2003								2002
											Interest								Interest
					Average			Yields/			income/		Average			Yields/			income/
(in millions)					balance			rates			expense		balance			rates			expense
EARNING ASSETS
Federal funds sold and securities purchased under resale agreements					$	4,762			1.24	%	$	29	$	2,601			1.72	%	$	22
Debt securities available for sale (3):
	Securities of U.S. Treasury and federal agencies					1,291			4.99			30		1,920			5.76			53
	Securities of U.S. states and political subdivisions					2,051			8.92			85		2,114			8.29			84
	Mortgage-backed securities:
			Federal agencies			16,697			8.05			623		29,508			7.05			1,014
			Private collateralized mortgage obligations			2,009			7.09			68		2,627			7.09			92
				Total mortgage-backed securities		18,706			7.94			691		32,135			7.05			1,106
		Other debt securities (4)				3,092			7.72			116		3,089			7.66			114
				Total debt securities available for sale (4)		25,140			7.84			922		39,258			7.10			1,357
Mortgages held for sale (3)						61,977			5.41			1,678		31,826			6.45			1,031
Loans held for sale (3)						7,033			3.85			134		5,203			5.50			142
Loans:
		Commercial				47,247			6.18			1,450		46,648			6.99			1,617
		Real estate 1-4 family first mortgage				43,755			5.21			1,139		28,886			6.28			906
		Other real estate mortgage				25,524			5.59			709		25,500			6.33			801
		Real estate construction				7,945			5.25			207		7,983			5.77			228
		Consumer:
				Real estate 1-4 family junior lien mortgage		33,475			6.97			1,157		25,610			7.87			1,001
				Credit card		7,428			12.16			452		6,594			12.29			406
				Other revolving credit and installment		28,134			9.36			1,308		23,597			10.43			1,223
				Total consumer		69,037			8.50			2,917		55,801			9.48			2,630
		Lease financing				8,515			6.80			288		9,216			7.23			332
		Foreign				2,057			18.16			187		1,666			19.42			162
				Total loans (5)		204,080			6.80			6,897		175,700			7.64			6,676
Other						7,417			3.04			113		6,384			4.10			131
				Total earning assets	$	310,409			6.36			9,773	$	260,972			7.23			9,359
FUNDING SOURCES
Deposits:
		Interest-bearing checking			$	2,472			.34			4	$	2,548			.67			9
		Market rate and other savings				102,720			.72			366		91,415			.96			434
		Savings certificates				21,678			2.68			288		25,279			3.44			431
		Other time deposits				23,739			1.32			156		5,456			2.00			55
		Deposits in foreign offices				6,307			1.22			38		5,842			1.66			48
				Total interest-bearing deposits		156,916			1.09			852		130,540			1.51			977
Short-term borrowings						30,842			1.19			182		36,748			1.67			305
Long-term debt						49,183			2.73			671		39,457			3.43			674
Guaranteed preferred beneficial interests in Company’s subordinated debentures						3,051			3.72			56		2,673			4.35			58
				Total interest-bearing liabilities		239,992			1.48			1,761		209,418			1.94			2,014
Portion of noninterest-bearing funding sources						70,417			—			—		51,554			—			—
				Total funding sources	$	310,409			1.15			1,761	$	260,972			1.56			2,014
Net interest margin and net interest income on a taxable-equivalent basis (6)									5.21	%	$	8,012					5.67	%	$	7,345
NONINTEREST-EARNING ASSETS
Cash and due from banks					$	13,504							$	13,985
Goodwill						9,796								9,725
Other						31,506								28,015
				Total noninterest-earning assets	$	54,806							$	51,725
NONINTEREST-BEARING FUNDING SOURCES
Deposits					$	74,270							$	59,284
Other liabilities						20,014								15,542
Preferred stockholders’ equity						53								56
Common stockholders’ equity						30,886								28,397
Noninterest-bearing funding sources used to fund earning assets						(70,417	)							(51,554	)
				Net noninterest-bearing funding sources	$	54,806							$	51,725
TOTAL ASSETS					$	365,215							$	312,697

(1)	The average prime rate of the Company was 4.25% and 4.75% for the six months ended June 30, 2003 and 2002, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.29% and 1.91% for the same periods, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for both periods presented.

-18-

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS

	Community				Wholesale					Wells Fargo					Reconciliation						Consolidated
(income/expense in millions,	Banking				Banking					Financial					column (1)						Company
average balances in billions)
Quarter ended June 30,	2003		2002		2003		2002			2003		2002			2003			2002			2003		2002
Net interest income	$	2,938	$	2,621	$	560	$	569		$	550	$	452		$	(2	)	$	(3	)	$	4,046	$	3,639
Provision for loan losses		230		192		46		73			148		145			—			—			424		410
Noninterest income		1,938		1,661		656		632			95		87			20			(2	)		2,709		2,378
Noninterest expense		3,022		2,542		636		589			321		272			1			2			3,980		3,405
Income (loss) before income tax expense (benefit)		1,624		1,548		534		539			176		122			17			(7	)		2,351		2,202
Income tax expense (benefit)		565		545		189		193			66		47			6			(3	)		826		782
Net income (loss)	$	1,059	$	1,003	$	345	$	346		$	110		75		$	11		$	(4	)	$	1,525	$	1,420
Average loans	$	140	$	114	$	50	$	50		$	19	$	15		$	—		$	—		$	209	$	179
Average assets		270		218		78		70			21		17			6			6			375		311
Average core deposits		184		162		21		17			—		—			—			—			205		179
Six months ended June 30,
Net interest income	$	5,793	$	5,272	$	1,111	$	1,135		$	1,073	$	893		$	(5	)	$	(7	)	$	7,972	$	7,293
Provision for loan losses		460		468		100		158			289		274			—			—			849		900
Noninterest income		3,795		3,269		1,309		1,216			186		178			1			16			5,291		4,679
Noninterest expense		5,861		5,005		1,256		1,183			629		542			3			2			7,749		6,732
Income (loss) before income tax expense (benefit) and effect of change in accounting principle		3,267		3,068		1,064		1,010			341		255			(7	)		7			4,665		4,340
Income tax expense (benefit)		1,150		1,081		371		362			129		96			(2	)		2			1,648		1,541
Net income (loss) before effect of change in accounting principle		2,117		1,987		693		648			212		159			(5	)		5			3,017		2,799
Cumulative effect of change in accounting principle		—		—		—		(98	)		—		(178	)		—			—			—		(276	)
Net income (loss)	$	2,117	$	1,987	$	693	$	550		$	212	$	(19	)	$	(5	)	$	5		$	3,017	$	2,523
Average loans	$	136	$	111	$	50	$	50		$	18	$	15		$	—		$	—		$	204	$	176
Average assets		263		220		76		70			20		17			6			6			365		313
Average core deposits		180		161		21		18			—		—			—			—			201		179

(1) The reconciling items for revenue (i.e., net interest income plus noninterest income) and net income are Treasury equity investment activities. The material item in the reconciliation column for average assets is unallocated goodwill held at the enterprise level.

-19-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

(in millions, except per share amounts)			2Q03			1Q03			4Q02			3Q02			2Q02
For the Period
Net income			$	1,525		$	1,492		$	1,466		$	1,444		$	1,420
Diluted earnings per common share				.90			.88			.86			.84			.82
Profitability ratios (annualized)
	Net income to average total assets (ROA)			1.63	%		1.70	%		1.71	%		1.78	%		1.83	%
	Net income applicable to common stock to average common stockholders’ equity (ROE)			19.60			19.77			19.34			19.38			19.72
Efficiency ratio (1)				58.9			57.9			58.1			56.4			56.6
Total revenue			$	6,755		$	6,509		$	6,484		$	6,040		$	6,017
Dividends declared per common share				.30			.30			.28			.28			.28
Average common shares outstanding				1,675.7			1,681.5			1,690.4			1,700.7			1,710.4
Diluted average common shares outstanding				1,690.6			1,694.1			1,704.0			1,717.8			1,730.8
Average loans			$	208,912		$	199,194		$	183,827		$	181,782		$	179,232
Average assets				375,149			355,171			340,258			321,217			311,075
Average core deposits				205,428			196,802			194,850			184,448			179,394
Net interest margin				5.12	%		5.31	%		5.44	%		5.52	%		5.66	%
At Period End
Securities available for sale			$	24,625		$	26,168		$	27,947		$	32,974		$	37,132
Loans				215,392			205,954			196,634			186,310			185,001
Allowance for loan losses				3,894			3,887			3,862			3,861			3,883
Goodwill				9,803			9,799			9,753			9,744			9,724
Assets				369,645			369,669			349,259			334,250			314,802
Core deposits				210,722			203,185			198,234			190,606			181,807
Common stockholders’ equity				32,223			30,723			30,297			30,016			29,473
Stockholders’ equity				32,275			30,771			30,358			30,074			29,527
Capital ratios
	Common stockholders’ equity to assets			8.72	%		8.31	%		8.67	%		8.98	%		9.36	%
	Stockholders’ equity to assets			8.73			8.32			8.69			9.00			9.38
	Risk-based capital (2)
		Tier 1 capital		7.93			7.34			7.60			7.84			7.95
		Total capital		11.43			10.89			11.31			11.39			11.32
	Tier 1 leverage (2)			6.59			6.43			6.58			6.83			6.89
Book value per common share			$	19.20		$	18.34		$	17.97		$	17.67		$	17.24
Staff (active, full-time equivalent)				135,500			131,600			127,500			125,700			123,500
Common Stock Price
High			$	52.80		$	49.13		$	51.60		$	54.84		$	53.44
Low				45.01			43.27			43.30			38.10			48.12
Period end				50.40			44.99			46.87			48.16			50.06

(1)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	The June 30, 2003 ratios are preliminary.

-20-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

(in millions, except per share amounts)			2Q03			1Q03			4Q02			3Q02			2Q02
INTEREST INCOME
Securities available for sale			$	435		$	453		$	531		$	582		$	656
Mortgages held for sale				864			814			828			591			440
Loans held for sale				67			67			58			52			73
Loans				3,482			3,410			3,347			3,400			3,379
Other interest income				80			62			62			74			79
		Total interest income		4,928			4,806			4,826			4,699			4,627
INTEREST EXPENSE
Deposits				425			427			460			483			483
Short-term borrowings				87			95			107			124			131
Long-term debt				341			330			363			367			344
Guaranteed preferred beneficial interests in Company’s subordinated debentures				29			27			29			30			30
		Total interest expense		882			879			959			1,004			988
NET INTEREST INCOME				4,046			3,927			3,867			3,695			3,639
Provision for loan losses				424			425			438			395			410
Net interest income after provision for loan losses				3,622			3,502			3,429			3,300			3,229
NONINTEREST INCOME
Service charges on deposit accounts				587			553			567			560			547
Trust and investment fees				470			460			480			462			472
Credit card fees				257			243			255			242			223
Other fees				373			368			375			372			326
Mortgage banking				543			561			515			426			412
Insurance				289			266			231			234			269
Net gains on debt securities available for sale				20			18			91			121			45
Net losses from equity investments				(47	)		(98	)		(96	)		(152	)		(58	)
Other				217			211			199			80			142
		Total noninterest income		2,709			2,582			2,617			2,345			2,378
NONINTEREST EXPENSE
Salaries				1,155			1,141			1,091			1,110			1,106
Incentive compensation				503			447			541			446			362
Employee benefits				350			419			287			304			364
Equipment				305			269			317			232			228
Net occupancy				288			296			281			278			274
Net losses (gains) on dispositions of premises and equipment				10			(4	)		26			—			29
Other				1,369			1,202			1,227			1,037			1,042
		Total noninterest expense		3,980			3,770			3,770			3,407			3,405
INCOME BEFORE INCOME TAX EXPENSE				2,351			2,314			2,276			2,238			2,202
Income tax expense				826			822			810			794			782
NET INCOME			$	1,525		$	1,492		$	1,466		$	1,444		$	1,420
NET INCOME APPLICABLE TO COMMON STOCK			$	1,524		$	1,491		$	1,465		$	1,443		$	1,419
EARNINGS PER COMMON SHARE
	Earnings per common share		$	.91		$	.89		$	.87		$	.85		$	.83
	Diluted earnings per common share		$	.90		$	.88		$	.86		$	.84		$	.82
DIVIDENDS DECLARED PER COMMON SHARE			$	.30		$	.30		$	.28		$	.28		$	.28
Average common shares outstanding				1,675.7			1,681.5			1,690.4			1,700.7			1,710.4
Diluted average common shares outstanding				1,690.6			1,694.1			1,704.0			1,717.8			1,730.8

-21-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET (QUARTER ENDED)

(in millions)		2Q03			1Q03			4Q02			3Q02			2Q02
ASSETS
Cash and due from banks		$	16,045		$	16,011		$	17,820		$	15,813		$	14,701
Federal funds sold and securities purchased under resale agreements			2,768			4,982			3,174			4,047			3,741
Securities available for sale			24,625			26,168			27,947			32,974			37,132
Mortgages held for sale			58,716			62,610			51,154			42,339			24,685
Loans held for sale			7,009			7,075			6,665			5,522			5,165
Loans			215,392			205,954			196,634			186,310			185,001
Allowance for loan losses			3,894			3,887			3,862			3,861			3,883
	Net loans		211,498			202,067			192,772			182,449			181,118
Mortgage servicing rights, net			3,821			4,183			4,489			4,415			5,956
Premises and equipment, net			3,604			3,680			3,688			3,664			3,638
Goodwill			9,803			9,799			9,753			9,744			9,724
Other assets			31,756			33,094			31,797			33,283			28,942
	Total assets	$	369,645		$	369,669		$	349,259		$	334,250		$	314,802
LIABILITIES
Noninterest-bearing deposits		$	80,943		$	75,330		$	74,094		$	69,382		$	61,499
Interest-bearing deposits			149,941			160,544			142,822			136,374			131,712
	Total deposits		230,884			235,874			216,916			205,756			193,211
Short-term borrowings			23,883			33,196			33,446			30,370			30,107
Accrued expenses and other liabilities			20,705			19,961			18,334			19,341			17,159
Long-term debt			58,513			46,982			47,320			45,824			41,913
Guaranteed preferred beneficial interests in Company’s subordinated debentures			3,385			2,885			2,885			2,885			2,885
	Total liabilities		337,370			338,898			318,901			304,176			285,275
STOCKHOLDERS’ EQUITY
Preferred stock			375			430			251			294			341
Unearned ESOP shares			(323	)		(382	)		(190	)		(236	)		(287	)
	Total preferred stock		52			48			61			58			54
Common stock			2,894			2,894			2,894			2,894			2,894
Additional paid-in capital			9,536			9,514			9,498			9,499			9,488
Retained earnings			21,320			20,349			19,394			18,441			17,530
Cumulative other comprehensive income			1,185			913			976			1,070			919
Treasury stock			(2,712	)		(2,947	)		(2,465	)		(1,888	)		(1,358	)
	Total stockholders’ equity		32,275			30,771			30,358			30,074			29,527
	Total liabilities and stockholders’ equity	$	369,645		$	369,669		$	349,259		$	334,250		$	314,802

-22-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS (QUARTER ENDED)

(in millions)				2Q03		1Q03		4Q02		3Q02		2Q02
Commercial				$	47,577	$	48,147	$	47,292	$	46,827	$	47,413
Real estate 1-4 family first mortgage					48,239		44,492		40,976		33,773		33,951
Other real estate mortgage					25,703		25,629		25,312		25,233		25,665
Real estate construction					7,853		8,032		7,804		7,887		7,853
Consumer:
	Real estate 1-4 family junior lien mortgage				36,695		33,175		31,290		30,193		28,151
	Credit card				7,626		7,359		7,455		7,033		6,781
	Other revolving credit and installment				30,943		28,361		26,353		24,912		24,504
		Total consumer			75,264		68,895		65,098		62,138		59,436
Lease financing					8,514		8,698		8,241		8,593		8,832
Foreign					2,242		2,061		1,911		1,859		1,851
			Total loans (net of unearned income)	$	215,392	$	205,954	$	196,634	$	186,310	$	185,001

FIVE QUARTER AVERAGE LOANS

(in millions)			2Q03		1Q03		4Q02		3Q02		2Q02
Commercial			$	47,484	$	47,007	$	46,467	$	46,323	$	46,628
Real estate 1-4 family first mortgage				45,776		41,713		31,266		31,366		31,118
Other real estate mortgage				25,661		25,385		25,268		25,389		25,711
Real estate construction				7,983		7,908		7,894		7,843		7,935
Consumer:
	Real estate 1-4 family junior lien mortgage			34,857		32,076		30,630		29,192		26,759
	Credit card			7,456		7,400		7,150		6,898		6,616
	Other revolving credit and installment			28,876		27,383		24,825		24,251		23,646
		Total consumer		71,189		66,859		62,605		60,341		57,021
Lease financing				8,658		8,371		8,410		8,678		9,071
Foreign				2,161		1,951		1,917		1,842		1,748
		Total average loans (net of unearned income)	$	208,912	$	199,194	$	183,827	$	181,782	$	179,232

-23-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN THE ALLOWANCE FOR LOAN LOSSES

(in millions)					2Q03			1Q03			4Q02			3Q02			2Q02
Balance, beginning of period					$	3,887		$	3,862		$	3,861		$	3,883		$	3,842
Allowances related to business combinations/other						7			25			1			(2	)		18
Provision for loan losses						424			425			438			395			410
Loan charge-offs:
	Commercial					(147	)		(153	)		(183	)		(159	)		(183	)
	Real estate 1-4 family first mortgage					(6	)		(9	)		(7	)		(3	)		(9	)
	Other real estate mortgage					(9	)		(2	)		(10	)		(2	)		(2	)
	Real estate construction					(3	)		(3	)		(8	)		(9	)		(3	)
	Consumer:
		Real estate 1-4 family junior lien mortgage				(22	)		(22	)		(23	)		(14	)		(18	)
		Credit card				(116	)		(112	)		(100	)		(99	)		(105	)
		Other revolving credit and installment				(198	)		(198	)		(174	)		(212	)		(170	)
			Total consumer			(336	)		(332	)		(297	)		(325	)		(293	)
	Lease financing					(24	)		(26	)		(26	)		(21	)		(20	)
	Foreign					(25	)		(20	)		(21	)		(19	)		(23	)
				Total loan charge-offs		(550	)		(545	)		(552	)		(538	)		(533	)
Loan recoveries:
	Commercial					37			36			42			36			53
	Real estate 1-4 family first mortgage					1			—			—			1			2
	Other real estate mortgage					3			2			3			3			5
	Real estate construction					4			5			—			10			7
	Consumer:
		Real estate 1-4 family junior lien mortgage				6			5			3			4			4
		Credit card				13			12			12			12			12
		Other revolving credit and installment				50			51			45			49			54
			Total consumer			69			68			60			65			70
	Lease financing					7			6			6			4			5
	Foreign					5			3			3			4			4
			Total loan recoveries			126			120			114			123			146
				Net loan charge-offs		(424	)		(425	)		(438	)		(415	)		(387	)
Balance, end of period					$	3,894		$	3,887		$	3,862		$	3,861		$	3,883
Net loan charge-offs (annualized) as a percentage of average total loans						.81	%		.87	%		.95	%		.91	%		.87	%
Allowance as a percentage of total loans						1.81	%		1.89	%		1.96	%		2.07	%		2.10	%

-24-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS (QUARTER ENDED)

(in millions)				2Q03			1Q03			4Q02			3Q02			2Q02
Nonaccrual loans:
	Commercial			$	787		$	836		$	796		$	840		$	934
	Real estate 1-4 family first mortgage				206			216			214			215			213
	Other real estate mortgage				263			222			192			198			200
	Real estate construction				61			72			93			112			147
	Consumer:
		Real estate 1-4 family junior lien mortgage			105			83			65			39			36
		Other revolving credit and installment			49			44			48			55			48
			Total consumer		154			127			113			94			84
	Lease financing				85			85			79			85			85
	Foreign				5			5			5			5			6
		Total nonaccrual loans			1,561			1,563			1,492			1,549			1,669
As a percentage of total loans					.7	%		.8	%		.8	%		.8	%		.9	%
Foreclosed assets					195			200			201			186			192
Real estate investments					5			5			4			2			2
Total nonaccrual loans and other assets				$	1,761		$	1,768		$	1,697		$	1,737		$	1,863

-25-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS

(income/expense in millions, average balances in billions)	2Q03			1Q03			4Q02			3Q02			2Q02
COMMUNITY BANKING
Net interest income	$	2,938		$	2,855		$	2,809		$	2,664		$	2,621
Provision for loan losses		230			231			266			180			192
Noninterest income		1,938			1,858			1,947			1,744			1,661
Noninterest expense		3,022			2,839			2,861			2,574			2,542
Income before income tax expense		1,624			1,643			1,629			1,654			1,548
Income tax expense		565			585			573			581			545
Net income	$	1,059		$	1,058		$	1,056		$	1,073		$	1,003
Average loans	$	140		$	132		$	119		$	117		$	114
Average assets		270			256			244			227			218
Average core deposits		184			176			175			166			162
WHOLESALE BANKING
Net interest income	$	560		$	551		$	565		$	556		$	569
Provision for loan losses		46			53			60			60			73
Noninterest income		656			652			588			512			632
Noninterest expense		636			620			620			564			589
Income before income tax expense		534			530			473			444			539
Income tax expense		189			183			170			159			193
Net income	$	345		$	347		$	303		$	285		$	346
Average loans	$	50		$	49		$	49		$	49		$	50
Average assets		78			74			72			71			70
Average core deposits		21			21			20			18			17
WELLS FARGO FINANCIAL
Net interest income	$	550		$	523		$	496		$	477		$	452
Provision for loan losses		148			141			112			155			145
Noninterest income		95			91			80			95			87
Noninterest expense		321			308			288			268			272
Income before income tax expense		176			165			176			149			122
Income tax expense		66			63			67			57			47
Net income	$	110		$	102		$	109		$	92		$	75
Average loans	$	19		$	18		$	16		$	16		$	15
Average assets		21			19			18			17			17
RECONCILIATION (1)
Net interest income	$	(2	)	$	(2	)	$	(3	)	$	(2	)	$	(3	)
Provision for loan losses		—			—			—			—			—
Noninterest income		20			(19	)		2			(6	)		(2	)
Noninterest expense		1			3			1			1			2
Income (loss) before income tax expense (benefit)		17			(24	)		(2	)		(9	)		(7	)
Income tax expense (benefit)		6			(9	)		—			(3	)		(3	)
Net income (loss)	$	11		$	(15	)	$	(2	)	$	(6	)	$	(4	)
Average loans	$	—		$	—		$	—		$	—		$	—
Average assets		6			6			6			6			6
Average core deposits		—			—			—			—			—
CONSOLIDATED COMPANY
Net interest income	$	4,046		$	3,927		$	3,867		$	3,695		$	3,639
Provision for loan losses		424			425			438			395			410
Noninterest income		2,709			2,582			2,617			2,345			2,378
Noninterest expense		3,980			3,770			3,770			3,407			3,405
Income before income tax expense		2,351			2,314			2,276			2,238			2,202
Income tax expense		826			822			810			794			782
Net income	$	1,525		$	1,492		$	1,466		$	1,444		$	1,420
Average loans	$	209		$	199		$	184		$	182		$	179
Average assets		375			355			340			321			311
Average core deposits		205			197			195			184			179

(1) The reconciling items for revenue (i.e., net interest income plus noninterest income) and net income are Treasury equity investment activities. The material item in the reconciliation section for average assets is unallocated goodwill held at the enterprise level.

-26-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (1)

(in millions)			2Q03			1Q03			4Q02			3Q02			2Q02
Mortgage Servicing Rights:
	Balance, beginning of quarter		$	6,652		$	6,677		$	6,174		$	7,865		$	8,604
		Originations		892			603			793			492			461
		Purchases		462			394			490			268			314
		Amortization		(926	)		(803	)		(671	)		(534	)		(366	)
		Write-down		(535	)		(311	)		(184	)		(887	)		—
		Other (includes changes in mortgage servicing rights due to hedging)		(170	)		92			75			(1,030	)		(1,148	)
	Balance before valuation allowance, end of quarter			6,375			6,652			6,677			6,174			7,865
		Less: Valuation allowance		2,554			2,469			2,188			1,759			1,909
	Balance, end of quarter		$	3,821		$	4,183		$	4,489		$	4,415		$	5,956
Mortgage Servicing Rights Valuation Allowance:
	Balance, beginning of quarter		$	2,469		$	2,188		$	1,759		$	1,909		$	1,466
		Provision for mortgage servicing rights in excess of fair value		620			592			613			737			443
		Write-down of mortgage servicing rights		(535	)		(311	)		(184	)		(887	)		—
	Balance, end of quarter		$	2,554		$	2,469		$	2,188		$	1,759		$	1,909
Ratio of mortgage servicing rights to related mortgage loans serviced for others				.73	%		.84	%		.92	%		.89	%		1.30	%

(in billions)				2Q03			1Q03			4Q02			3Q02			2Q02
Managed Servicing Portfolio:
		Loans serviced for others		$	522		$	499		$	487		$	495		$	458
		Owned loans serviced (Portfolio & Warehouse)			106			106			91			75			57
			Total owned servicing		628			605			578			570			515
		Sub-servicing			23			29			36			45			51
			Total managed servicing	$	651		$	634		$	614		$	615		$	566
	Weighted-average note rate (owned servicing only)				6.23	%		6.49	%		6.67	%		6.89	%		7.02	%

(1) Consists of residential and commercial mortgage servicing from all Wells Fargo channels

-27-

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION AND SERVICING DATA

(in billions)		2Q03			1Q03			4Q02			3Q02			2Q02
Application Data (1):
	Residential real estate first mortgage quarterly applications	$	204		$	157		$	121		$	157		$	87
	Percentage of refinances		70	%		69	%		71	%		74	%		52	%
	Residential real estate first mortgage unclosed pipeline, at quarter end	$	120		$	89		$	69		$	89		$	48

(1) Consists of Wells Fargo Home Mortgage application data only

(in billions)				2Q03		1Q03		4Q02		3Q02		2Q02
Residential Real Estate Originations (1):
	Quarter:
		Residential real estate first mortgage loans:
			Retail	$	73	$	51	$	54	$	37	$	24
			Correspondent/Wholesale		54		46		52		46		32
		Home equity loans and lines			7		5		5		5		5
		Wells Fargo Financial			1		1		1		1		1
			Total	$	135	$	103	$	112	$	89	$	62
	Year-to-date			$	238	$	103	$	333	$	221	$	132

(1) Consists of residential real estate originations from all Wells Fargo channels

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EX-99

exv99