Wells Fargo mpany : Q4 2024 presentation

4Q24 Financial Results

January 15, 2025

© 2025 Wells Fargo Bank, N.A. All rights reserved.

4Q24 results

Financial Results

ROE: 11.7%

ROTCE: 13.9%1

Efficiency ratio: 68%2

Credit Quality

Capital and Liquidity

CET1 ratio: 11.1%6

LCR: 125%7

TLAC ratio: 24.8%8

• Net income of $5.1 billion, or $1.43 per diluted common share, included:

($ in millions, except EPS)	Pre-tax Income	EPS
Discrete tax benefits related to the resolution of prior period matters	$863	$0.26
Severance expense	(647)	(0.15)
Net losses on debt securities related to a repositioning of the investment portfolio	(448)	(0.10)

• Revenue of $20.4 billion, down slightly

- Net interest income of $11.8 billion, down 7%

- Noninterest income of $8.5 billion, up 11%

• Noninterest expense of $13.9 billion, down 12%

• Pre-tax pre-provision profit3 of $6.5 billion, up 38%

• Effective income tax rate of 2.3%4 and included $863 million of discrete tax benefits

• Average loans of $906.4 billion, down 3%

• Average deposits of $1.4 trillion, up 1%

• Provision for credit losses5 of $1.1 billion

- Total net loan charge-offs of $1.2 billion, down $41 million, with net loan charge-offs of 0.53% of average loans (annualized)

- Allowance for credit losses for loans of $14.6 billion, down 3%

• Common Equity Tier 1 (CET1) capital6 of $134.6 billion

• CET1 ratio6 of 11.1% under the Standardized Approach

• Liquidity coverage ratio (LCR)7 of 125%

Comparisons in the bullet points are for 4Q24 versus 4Q23, unless otherwise noted. Endnotes are presented starting on page 21.

4Q24 Financial Results

2

4Q24 earnings

		Quarter ended			$ Change from		Year ended		$ Change from
$ in millions, except per share data	4Q24	3Q24	4Q23		3Q24		4Q23	2024	2023	2023
Net interest income	$11,836	11,690	12,771	$146		(935)			$47,676	52,375	($4,699)
Noninterest income	8,542	8,676	7,707	(134)		835			34,620	30,222	4,398
Total revenue	20,378	20,366	20,478	12		(100)			82,296	82,597	(301)
Net charge-offs	1,188	1,111	1,258	77		(70)			4,759	3,450	1,309
Change in the allowance for credit losses	(93)	(46)	24	(47)		(117)			(425)	1,949	(2,374)
Provision for credit losses1	1,095	1,065	1,282	30		(187)			4,334	5,399	(1,065)
Noninterest expense	13,900	13,067	15,786	833		(1,886)			54,598	55,562	(964)
Pre-tax income	5,383	6,234	3,410	(851)		1,973			23,364	21,636	1,728
Income tax expense (benefit)2	120	1,064	(100)	(944)		220			3,399	2,607	792
Effective income tax rate (%)	2.3 %	17.2	(3.0)		(1,491) bps	530			14.7 %	12.0	270	bps
Net income	$5,079	5,114	3,446	($35)		1,633			$19,722	19,142	$580
Diluted earnings per common share	$1.43	1.42	0.86	$0.01		0.57			$5.37	4.83	$0.54
Diluted average common shares (# mm)	3,360.7	3,425.1	3,657.0	(64)		(296)			3,467.6	3,720.4	(253)
Return on equity (ROE)	11.7 %	11.7	7.6	2	bps	414			11.4 %	11.0	37	bps
Return on average tangible common equity (ROTCE)3	13.9	13.9	9.0	3		490			13.4	13.1	31
Efficiency ratio	68	64	77	405		(888)			66	67	(93)

Endnotes are presented starting on page 21.

4Q24 Financial Results

3

Net interest income

Net Interest Income ($ in millions)

12,771	12,227
	11,923	11,690	11,836

2.92%	2.81%	2.75%
	2.67%	2.70%

• Net interest income down $935 million, or 7%, from 4Q23 driven by deposit mix and pricing changes, the impact of lower rates on floating rate assets, and lower loan balances, partially offset by lower market funding
• Net interest income up $146 million, or 1%, from 3Q24 driven by higher customer deposit balances and lower market funding, partially offset by the impact of lower rates on floating rate assets, as well as changes in deposit mix

4Q23

1Q24

2Q24

3Q24

4Q24

Net Interest Margin (NIM) on a taxable-equivalent basis1

Endnotes are presented starting on page 21.

4Q24 Financial Results

4

Period-EndDeposits ($ in billions)

Loans and deposits

Average Loans Outstanding ($ in billions)

Average Deposits ($ in billions)

938.0

389.7

6.35%

548.3

928.1

386.0

6.38%

542.1

917.0

382.2

6.40%

534.8

910.3

379.7

6.41%

530.6

906.4

378.1

6.16%

528.3

Total Average

Loan Yield

Consumer

Loans

Commercial

Loans

1,340.9	1,341.6	1,346.5	1,341.7	1,353.8
122.9	119.6	111.1	92.6	72.5		Corporate
102.1	101.5	102.8	108.0	118.3
		Wealth and
173.1	183.3	187.5	194.3	205.1
	Investment
163.3	164.0	166.9	173.2	184.3		Management
	Corporate and
						Investment
						Banking
						Commercial
779.5	773.2	778.2	773.6	773.6		Banking
						Consumer Banking
						and Lending

4Q23

1Q24

2Q24

3Q24

4Q24

• Average loans down $31.6 billion, or 3%, year-over-year (YoY); down $3.9 billion from 3Q24 as declines in commercial real estate and residential mortgage loans were partially offset by higher commercial and industrial loans and credit card loans
• Total average loan yield of 6.16%, down 19 bps YoY and down 25 bps from 3Q24 reflecting the impact of lower interest rates
• Period-endloans of $912.7 billion, down $24.0 billion, or 3%, YoY and up $3.0 billion from 3Q24

Period-End Loans Outstanding ($ in billions)
		4Q24	vs 3Q24	vs 4Q23
Commercial	$	534.1	1 %	(2)%
Consumer		378.6	-	(3)
Total loans	$	912.7	- %	(3)%

4Q23

1Q24

2Q24

3Q24

4Q24

• Average deposits up $12.9 billion, or 1%, YoY and up $12.1 billion, or 1%, from 3Q24 as growth in customer deposits was partially offset by a reduction in higher cost CDs issued by Corporate Treasury
• Period-enddeposits up $13.6 billion, or 1%, YoY and up $22.2 billion, or 2%, from

3Q24

		4Q24	vs 3Q24	vs 4Q23
Consumer Banking and Lending	$	783.5	1 %	- %
Commercial Banking		188.7	6	16
Corporate and Investment Banking		212.9	7	15
Wealth and Investment Management		127.0	13	22
Corporate		59.7	(28)	(52)
Total deposits	$	1,371.8	2 %	1 %
Average deposit cost		1.73 %	(0.18)	0.15

4Q24 Financial Results

5

Noninterest income

Noninterest Income ($ in millions)

	8,636	8,766	8,676	8,542
7,707
	2,957	3,029	3,109	3,201
2,788
							Investment advisory fees and
							brokerage commissions1
	1,597	1,618	1,675	1,625			Deposit and lending-related fees
1,568			Net gains from trading activities
						Investment banking fees
	1,454	1,442					Card fees
1,070	1,438	950			All other	2
455	627	641	672	725
1,027	1,061	1,101	1,096	1,084
799	940	935	686	957
4Q23	1Q24	2Q24	3Q24	4Q24

Endnotes are presented starting on page 21. 4Q24 Financial Results

• Noninterest income increased $835 million, or 11%, from 4Q23
• • Investment advisory fees and brokerage commissions1 up $413 million, or 15%, driven by higher asset-based fees reflecting higher market valuations
  • Deposit and lending-related fees up $57 million, or 4%, on higher deposit- related fees including higher treasury management fees, as well as higher commercial lending-related fees
  • Net gains from trading activities down $120 million, or 11%, and included an $(85) million impact from the 4Q24 change to incorporate funding valuation adjustments (FVA) on derivatives
  • Investment banking fees up $270 million, or 59%, on increased activity in equity and debt capital markets and higher advisory fees
  • Card fees up $57 million, or 6%, and included higher debit and credit card interchange income on higher point of sale transactions and volume
  • All other2 up $158 million and included improved results from our venture capital investments, partially offset by higher net losses on debt securities related to a repositioning of the investment portfolio
• Noninterest income down $134 million, or 2%, from 3Q24
• • Investment advisory fees and brokerage commissions1 up $92 million, or 3%, driven by higher asset-basedfees reflecting higher market valuations
  • Net gains from trading activities down $488 million, or 34%, reflecting seasonality, a decline in customer activity in rates from a strong 3Q24, and an $(85) million impact from the 4Q24 change to incorporate FVA on derivatives
  • Investment banking fees up $53 million, or 8%, on higher advisory fee income and increased activity in equity capital markets
  • All other2 up $271 million and included improved results from our venture capital investments

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Noninterest expense

Noninterest Expense ($ in millions)

15,786
355	14,338			13,900
1,931	13,293
633	13,067
3381
1,1251	284	493	293
52	647
8,056 1	9,492	8,575	8,591	8,4241

	4,319	3,929	4,173	4,246	4,521
						(63)	(30)
	4Q23		1Q24	2Q24	3Q24	4Q24
			Operating Losses			FDIC Special Assessment
			Personnel Expense			Non-personnel Expense
			Headcount (Period-end, '000s)
	4Q23		1Q24	2Q24	3Q24	4Q24
	226	225	223		220	218

Endnotes are presented starting on page 21. 4Q24 Financial Results

• Noninterest expense down $1.9 billion from 4Q23
• • FDIC special assessment2 down $2.0 billion
  • Personnel expense down $110 million on lower severance expense and the impact of efficiency initiatives, partially offset by higher revenue-related compensation expense and higher benefits expense
  • Non-personnelexpense up $202 million, or 5%, and included higher technology and equipment expense, partially offset by the impact of efficiency initiatives
• Noninterest expense up $833 million, or 6%, from 3Q24
• • Personnel expense up $480 million and included severance expense of $647 million, partially offset by lower incentive compensation
  • Non-personnelexpense up $275 million, or 6%, and included higher technology and equipment expense, as well as higher professional and outside services expense

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Credit quality: net loan charge-offs

Provision for Credit Losses1 and Net Loan Charge-offs ($ in millions)

1,282	1,252	1,236	1,301		1,211
		1,149	1,065	1,111	1,095
		938

0.53%	0.50%	0.57%	0.49%	0.53%

• Commercial net loan charge-offs up $80 million to 30 bps of average loans (annualized) reflecting a $77 million increase in commercial real estate (CRE) net loan charge-offs
• • CRE net loan charge-offs of $261 million, or 74 bps of average loans (annualized) predominantly driven by CRE office net loan charge-offs
• Consumer net loan charge-offs up $20 million to 85 bps of average loans (annualized) on a $27 million increase in credit card net loan charge-offs
• Nonperforming assets of $7.9 billion, down $448 million, or 5%, predominantly driven by lower CRE nonaccrual loans and lower residential mortgage nonaccrual loans
• • CRE nonaccrual loans of $3.8 billion, down $344 million, or 8%, and included a $393 million decrease in CRE office nonaccruals including paydowns and net loan charge-offs

4Q23			1Q24	2Q24	3Q24	4Q24
				Provision for Credit Losses1		Net Loan Charge-offs
				Net Loan Charge-off Ratio

Comparisons in the bullet points are for 4Q24 versus 3Q24. Endnotes are presented starting on page 21.

4Q24 Financial Results

8

Credit quality: allowance for credit losses for loans

Allowance for Credit Losses for Loans ($ in millions)

15,088	14,862	14,789	14,739	14,636
6,676	6,545	6,553	6,647	6,690

• Allowance for credit losses for loans (ACL) down $103 million as modest ACL declines across most asset classes were partially offset by a higher ACL for credit card loans on higher loan balances
• • Allowance coverage for total loans down 1 bp from 4Q23 and down 2 bps from 3Q24

1.61%

8,412

1.61%

8,317

1.61%

8,236

1

1.62%

8,092

1.60%

7,946

• CRE Office ACL of $2.3 billion, down $135 million
• • CRE Office ACL as a % of loans of 8.3%, flat with 8.3%
  • • Corporate and Investment Banking (CIB) CRE Office ACL as a % of loans of 12.0%, up from 11.4%

CRE Allowance for Credit Losses (ACL) and Nonaccrual Loans, as of 12/31/24

	Allowance for	Loans	ACL as a %	Nonaccrual
($ in millions)	Credit Losses	Outstanding	of Loans		Loans
CIB CRE Office	$	2,066	17,285	12.0%	$	2,920
All other CRE Office		219	10,095	2.2		216

4Q23	1Q24	2Q24	3Q24	4Q24
		Commercial			Consumer			Allowance coverage for total loans

Total CRE Office		2,285	27,380	8.3	3,136
All other CRE		1,298	109,125	1.2	635
Total CRE	$	3,583	136,505	2.6% $	3,771

Comparisons in the bullet points are for 4Q24 versus 3Q24, unless otherwise noted.

4Q24 Financial Results

9

Capital and liquidity

Common Equity Tier 1 Ratio under the Standardized Approach1

11.4%	11.2%	11.0%	11.3%	11.1%

9.8%

Regulatory

Minimum

and Buffers2

4Q23 1Q24 2Q24 3Q24 4Q24 Estimated

Endnotes are presented starting on page 21. 4Q24 Financial Results

Capital Position

• Common Equity Tier 1 (CET1) ratio1 of 11.1% at December 31, 2024
• CET1 ratio down 30 bps from 4Q23 and down 20 bps from 3Q24
• • A decrease in accumulated other comprehensive income reflecting higher interest rates and wider spreads on mortgage-backed securities had a (26) bps impact on the CET1 ratio versus 3Q24

Capital Return

• $4.0 billion in gross common stock repurchases, or 57.8 million shares, in 4Q24; period-end common shares outstanding down 310.0 million, or 9%, from 4Q23
• 4Q24 common stock dividend of $0.40 per share with $1.3 billion in common stock dividends paid

Total Loss Absorbing Capacity (TLAC)

• As of December 31, 2024, our TLAC as a percentage of total risk-weighted assets3 was 24.8% compared with the required minimum of 21.5%

Liquidity Position

• Strong liquidity position with a 4Q24 LCR4 of 125% which remained above our regulatory minimum of 100%

10