Wells Fargo mpany : Q3 2021 quarterly supplement (PDF)

3Q21 Quarterly Supplement

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
	Pages
Consolidated Results
Summary Financial Data	3
Consolidated Statement of Income	5
Consolidated Balance Sheet	6
Average Balances and Interest Rates (Taxable-Equivalent Basis)	7
Reportable Operating Segment Results
Combined Segment Results	8
Consumer Banking and Lending	10
Commercial Banking	12
Corporate and Investment Banking	14
Wealth and Investment Management	16
Corporate	17
Credit-Related Information
Consolidated Loans Outstanding - Period End Balances, Average Balances, and Average Interest Rates	18
Net Loan Charge-offs	19
Changes in Allowance for Credit Losses for Loans	20
Allocation of the Allowance for Credit Losses for Loans	21
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)	22
Commercial and Industrial Loans and Lease Financing by Industry	23
Commercial Real Estate Loans by Property Type	24
Equity
Tangible Common Equity	25
Risk-Based Capital Ratios Under Basel III - Standardized Approach	27
Risk-Based Capital Ratios Under Basel III - Advanced Approach	28

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

					Quarter ended		Sep 30, 2021			Nine months ended
						% Change from
(in millions, except per share amounts)		Sep 30,	Jun 30,	Mar 31,	Dec 31,	Sep 30,		Jun 30,	Sep 30,			Sep 30,	Sep 30,	%
	2021	2021	2021	2020	2020	2021	2020			2021	2020		Change
Selected Income Statement Data
Total revenue	$	18,834	20,270	18,532	18,489	19,316	(7)%	(2)	$	57,636	55,775	3 %
Noninterest expense		13,303	13,341	13,989	14,802	15,229		-	(13)			40,633	42,828	(5)
Pre-taxpre-provision profit (PTPP) (1)		5,531	6,929	4,543	3,687	4,087	(20)	35			17,003	12,947	31
Provision for credit losses		(1,395)	(1,260)	(1,048)	(179)	769	(11)	NM			(3,703)	14,308		NM
Wells Fargo net income		5,122	6,040	4,636	3,091	3,216	(15)	59			15,798	286		NM
Wells Fargo net income (loss) applicable to common stock		4,787	5,743	4,256	2,741	2,901	(17)	65			14,786	(955)		NM
Common Share Data
Diluted earnings (loss) per common share		1.17	1.38	1.02	0.66	0.70	(15)	67			3.57	(0.23)		NM
Dividends declared per common share		0.20	0.10	0.10	0.10	0.10	100	100			0.40	1.12	(64)
Common shares outstanding		3,996.9	4,108.0	4,141.1	4,144.0	4,132.5	(3)	(3)
Average common shares outstanding		4,056.3	4,124.6	4,141.3	4,137.6	4,123.8	(2)	(2)			4,107.1	4,111.4		-
Diluted average common shares outstanding (2)		4,090.4	4,156.1	4,171.0	4,151.3	4,132.2	(2)	(1)			4,140.0	4,111.4	1
Book value per common share (3)	$	42.47	41.74	40.27	39.71	38.91	2	9
Tangible book value per common share (3)(4)		35.54	34.95	33.49	32.99	32.15	2	11
Selected Equity Data (period-end)
Total equity		191,071	193,127	188,034	185,712	181,727	(1)	5
Common stockholders' equity		169,753	171,453	166,748	164,570	160,804	(1)	6
Tangible common equity (4)		142,047	143,577	138,702	136,727	132,874	(1)	7
Performance Ratios
Return on average assets (ROA) (5)		1.04 %	1.25	0.97	0.64	0.66						1.09 %	0.02
Return on average equity (ROE) (6)		11.1	13.6	10.3	6.6	7.2						11.7	(0.8)
Return on average tangible common equity (ROTCE) (4)		13.2	16.3	12.4	8.0	8.7						14.0	(0.9)
Efficiency ratio (7)		71	66	75	80	79						70	77
Net interest margin on a taxable-equivalent basis		2.03	2.02	2.05	2.16	2.13						2.03	2.32

NM - Not meaningful

1. Pre-taxpre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
2. For the nine months ended September 30, 2020, diluted average common shares outstanding equaled average common shares outstanding because our securities convertible into common shares had an anti-dilutive effect.
3. Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.
4. Tangible common equity, tangible book value per common share, and return on average tangible common equity are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on pages 25 and 26.
5. Represents Wells Fargo net income divided by average assets.
6. Represents Wells Fargo net income (loss) applicable to common stock divided by average common stockholders' equity.
7. The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

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Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA (continued)

						Quarter ended		Sep 30, 2021			Nine months ended
							% Change from
($ in millions, unless otherwise noted)		Sep 30,	Jun 30,	Mar 31,	Dec 31,	Sep 30,		Jun 30,	Sep 30,			Sep 30,	Sep 30,	%
	2021	2021	2021	2020	2020	2021	2020			2021	2020		Change
Selected Balance Sheet Data (average)
Loans	$	854,024	854,747	873,439	899,704	931,708		- %	(8)	$	860,666	955,918	(10)%
Assets		1,949,700	1,939,879	1,934,425	1,925,013	1,945,911	1	-			1,941,391	1,947,315		-
Deposits		1,450,941	1,435,824	1,393,472	1,380,100	1,399,028	1	4			1,426,956	1,374,638	4
Selected Balance Sheet Data (period-end)
Debt securities		542,993	533,565	505,826	501,207	476,421	2	14
Loans		862,827	852,300	861,572	887,637	920,082	1	(6)
Allowance for credit losses for loans		14,705	16,391	18,043	19,713	20,471	(10)	(28)
Equity securities		66,526	64,547	57,702	60,008	49,348	3	35
Assets		1,954,901	1,945,996	1,957,264	1,952,911	1,920,399		-	2
Deposits		1,470,379	1,440,472	1,437,119	1,404,381	1,383,215	2	6
Headcount (#) (period-end)		253,871	259,196	264,513	268,531	274,931	(2)	(8)
Capital and other metrics (1)
Risk-based capital ratios and components (2):
Standardized Approach:
CET1		11.6 %	12.1	11.8	11.6	11.4
Tier 1 capital		13.2	13.7	13.5	13.3	13.1
Total capital		16.2	16.8	16.8	16.5	16.3
Risk-weighted assets (RWAs) (in billions)	$	1,219.1	1,188.7	1,179.0	1,193.7	1,185.6	3	3
Advanced Approach:
CET1		12.4 %	12.7	12.6	11.9	11.5
Tier 1 capital		14.1	14.5	14.4	13.7	13.2
Total capital		16.5	16.9	16.9	16.1	15.7
Risk-weighted assets (RWAs) (in billions)	$	1,138.3	1,126.5	1,109.4	1,158.4	1,172.0	1	(3)
Tier 1 leverage ratio		8.4 %	8.5	8.4	8.3	8.1
Supplementary Leverage Ratio (SLR)		6.9	7.1	7.9	8.1	7.8
Total Loss Absorbing Capacity (TLAC) Ratio (3)		23.7	25.1	25.2	25.7	25.8
Liquidity Coverage Ratio (LCR) (4)		119	123	127	133	134

1. Ratios and metrics for September 30, 2021, are preliminary estimates.
2. See the tables on pages 27 and 28 for more information on Common Equity Tier 1 (CET1), tier 1 capital, and total capital. The information presented reflects fully phased-in CET1, tier 1 capital, and RWAs, but reflects total capital in accordance with transition requirements.
3. Represents TLAC divided by the greater of RWAs determined under the Standardized and Advanced Approaches, which is our binding TLAC ratio.
4. Represents high-quality liquid assets divided by projected net cash outflows, as each is defined under the LCR rule.

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Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

						Quarter ended		Sep 30, 2021			Nine months ended
							% Change from
(in millions, except per share amounts)		Sep 30,	Jun 30,	Mar 31,	Dec 31,	Sep 30,		Jun 30,	Sep 30,			Sep 30,	Sep 30,	%
	2021	2021	2021	2020	2020		2021	2020			2021	2020		Change
Interest income	$	9,834	9,693	10,046	10,550	10,811	1 %	(9)	$	29,573	37,369	(21)%
Interest expense		925	893	1,238	1,195	1,432	4	(35)			3,056	6,768	(55)
Net interest income		8,909	8,800	8,808	9,355	9,379	1	(5)			26,517	30,601	(13)
Noninterest income
Deposit-related fees		1,416	1,342	1,255	1,333	1,299	6	9			4,013	3,888	3
Lending-related fees		365	362	361	356	352	1	4			1,088	1,025	6
Investment advisory and other asset-based fees		2,882	2,794	2,756	2,598	2,505	3	15			8,432	7,265	16
Commissions and brokerage services fees		525	580	636	589	568	(9)	(8)			1,741	1,795	(3)
Investment banking fees		547	570	568	486	441	(4)	24			1,685	1,379	22
Card fees		1,078	1,077	949	943	912		-	18			3,104	2,601	19
Mortgage banking		1,259	1,336	1,326	1,207	1,590	(6)	(21)			3,921	2,286	72
Net gains (losses) from trading activities		92	21	348	(60)	361	338	(75)			461	1,232	(63)
Net gains on debt securities		283	-	151	160	264		NM	7			434	713	(39)
Net gains (losses) from equity securities		869	2,696	392	884	649	(68)	34			3,957	(219)		NM
Lease income		322	313	315	224	333	3	(3)			950	1,021	(7)
Other		287	379	667	414	663	(24)	(57)			1,333	2,188	(39)
Total noninterest income		9,925	11,470	9,724	9,134	9,937	(13)	-			31,119	25,174	24
Total revenue		18,834	20,270	18,532	18,489	19,316	(7)	(2)			57,636	55,775	3
Provision for credit losses		(1,395)	(1,260)	(1,048)	(179)	769	(11)	NM			(3,703)	14,308		NM
Noninterest expense
Personnel		8,690	8,818	9,558	8,948	8,624	(1)	1			27,066	25,863	5
Technology, telecommunications and equipment		741	815	844	838	791	(9)	(6)			2,400	2,261	6
Occupancy		738	735	770	826	851		-	(13)			2,243	2,437	(8)
Operating losses		540	303	213	621	1,219	78	(56)			1,056	2,902	(64)
Professional and outside services		1,417	1,450	1,388	1,664	1,760	(2)	(19)			4,255	5,042	(16)
Leases (1)		220	226	226	227	291	(3)	(24)			672	795	(15)
Advertising and promotion		153	132	90	138	144	16	6			375	462	(19)
Restructuring charges		1	(4)	13	781	718	125	(100)			10	718	(99)
Other		803	866	887	759	831	(7)	(3)			2,556	2,348	9
Total noninterest expense		13,303	13,341	13,989	14,802	15,229		-	(13)			40,633	42,828	(5)
Income (loss) before income tax expense (benefit)		6,926	8,189	5,591	3,866	3,318	(15)	109			20,706	(1,361)		NM
Income tax expense (benefit)		1,521	1,445	901	574	(83)	5	NM			3,867	(1,731)		NM
Net income before noncontrolling interests		5,405	6,744	4,690	3,292	3,401	(20)	59			16,839	370		NM
Less: Net income from noncontrolling interests		283	704	54	201	185	(60)	53			1,041	84		NM
Wells Fargo net income	$	5,122	6,040	4,636	3,091	3,216	(15)	59	$	15,798	286		NM
Less: Preferred stock dividends and other		335	297	380	350	315	13	6			1,012	1,241	(18)
Wells Fargo net income (loss) applicable to common stock	$	4,787	5,743	4,256	2,741	2,901	(17)	65	$	14,786	(955)		NM
Per share information
Earnings (loss) per common share	$	1.18	1.39	1.03	0.66	0.70	(15)	69	$	3.60	(0.23)		NM
Diluted earnings (loss) per common share		1.17	1.38	1.02	0.66	0.70	(15)	67			3.57	(0.23)		NM

NM - Not meaningful

1. Represents expenses for assets we lease to customers.

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