Wells Fargo mpany : Q4 2020 quarterly supplement (PDF)

4Q20 Quarterly Supplement

	Wells Fargo & Company and Subsidiaries
	QUARTERLY FINANCIAL DATA
	TABLE OF CONTENTS
		Pages
Consolidated Results
Summary Financial Data	1
Consolidated Statement of Income	3
Consolidated Balance Sheet	4
Average Balances and Interest Rates (Taxable-Equivalent Basis)	5
Reportable Operating Segment Results
Combined Segment Results	6
Consumer Banking and Lending	8
Commercial Banking	10
Corporate and Investment Banking	12
Wealth and Investment Management	14
Corporate	15
Credit-Related Information
Consolidated Loans Outstanding - Period End	16
Net Loan Charge-offs	17
Changes in Allowance for Credit Losses for Loans	18
Allocation of the Allowance for Credit Losses for Loans	19
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)	20
Commercial and Industrial Loans and Lease Financing by Industry	21
Commercial Real Estate Loans by Property Type	22
Equity
Tangible Common Equity	23
Risk-Based Capital Ratios Under Basel III - Standardized Approach	25
Risk-Based Capital Ratios Under Basel III - Advanced Approach	26
Other
Deferred Compensation and Related Hedges	27

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2020, 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		Dec 31, 2020				Year ended
							% Change from
(in millions, except per share amounts)		Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,		Sep 30,	Dec 31,			Dec 31,	Dec 31,	%
	2020	2020	2020	2020	2019	2020	2019			2020	2019		Change
Selected Income Statement Data
Total revenue	$	17,925	18,862	17,836	17,717	19,860	(5)%	(10)	$	72,340	85,063	(15)%
Total noninterest expense		14,802	15,229	14,551	13,048	15,614	(3)	(5)			57,630	58,178	(1)
Pre-taxpre-provision profit (PTPP) (1)		3,123	3,633	3,285	4,669	4,246	(14)	(26)			14,710	26,885	(45)
Provision for credit losses		(179)	769	9,534	4,005	644		NM	NM			14,129	2,687	426
Wells Fargo net income (loss)		2,992	2,035	(2,379)	653	2,873	47	4			3,301	19,549	(83)
Wells Fargo net income (loss) applicable to common stock		2,642	1,720	(2,694)	42	2,546	54	4			1,710	17,938	(90)
Common Share Data
Diluted earnings (loss) per common share		0.64	0.42	(0.66)	0.01	0.60	52	7			0.41	4.05	(90)
Dividends declared per common share		0.10	0.10	0.51	0.51	0.51		-	(80)			1.22	1.92	(36)
Common shares outstanding		4,144.0	4,132.5	4,119.6	4,096.4	4,134.4		-	-
Average common shares outstanding		4,137.6	4,123.8	4,105.5	4,104.8	4,197.1		-	(1)			4,118.0	4,393.1	(6)
Diluted average common shares outstanding (2)		4,151.3	4,132.2	4,105.5	4,135.3	4,234.6		-	(2)			4,134.2	4,425.4	(7)
Book value per common share (3)	$	39.76	38.99	38.67	39.71	40.31	2	(1)
Tangible book value per common share (3)(4)		33.04	32.23	31.88	32.90	33.50	3	(1)
Selected Equity Data (period-end)
Total equity		185,920	182,032	180,122	183,330	187,984	2	(1)
Common stockholders' equity		164,778	161,109	159,322	162,654	166,669	2	(1)
Tangible common equity (4)		136,935	133,179	131,329	134,787	138,506	3	(1)
Performance Ratios
Return on average assets (ROA)(5)		0.62 %	0.42	(0.49)	0.13	0.59						0.17 %	1.02
Return on average equity (ROE)(6)		6.4	4.2	(6.6)	0.1	5.9						1.0	10.2
Return on average tangible common equity (ROTCE)(4)		7.7	5.1	(8.0)	0.1	7.1						1.3	12.2
Efficiency ratio (7)		83	81	82	74	79						80	68
Net interest margin on a taxable-equivalent basis		2.13	2.13	2.25	2.58	2.53						2.27	2.73

NM - Not meaningful

1. Pre-taxpre-provision profit (PTPP) is total revenue less total 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 second quarter 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 23 and 24.
5. Represents Wells Fargo net income (loss) 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 total 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		Dec 31, 2020			Year ended
							% Change from
($ in millions, unless otherwise noted)		Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,		Sep 30,	Dec 31,		Dec 31,	Dec 31,	%
	2020	2020	2020	2020	2019	2020	2019	2020	2019		Change
Selected Balance Sheet Data (average)
Loans	$	899,704	931,708	971,266	965,046	956,536	(3)%	(6)	$ 941,788	950,956	(1)%
Assets		1,926,872	1,947,672	1,948,939	1,950,659	1,941,843	(1)	(1)	1,943,501	1,913,444	2
Deposits		1,380,100	1,399,028	1,386,656	1,337,963	1,321,913	(1)	4	1,376,011	1,286,261	7
Selected Balance Sheet Data (period-end)
Debt securities		501,207	476,421	472,580	501,563	497,125	5	1
Loans		887,637	920,082	935,155	1,009,843	962,265	(4)	(8)
Allowance for loan losses		18,516	19,463	18,926	11,263	9,551	(5)	94
Equity securities		62,260	51,169	52,494	54,047	68,241	22	(9)
Assets		1,955,163	1,922,220	1,968,766	1,981,349	1,927,555	2	1
Deposits		1,404,381	1,383,215	1,410,711	1,376,532	1,322,626	2	6
Headcount (#)		268,531	274,931	276,013	272,267	271,924	(2)	(1)
Capital and other metrics (1)
Risk-based capital ratios and components (2):
Standardized Approach:
CET1		11.6 %	11.4	11.0	10.7	11.1
Tier 1 capital		13.3	13.1	12.6	12.2	12.8
Total capital		16.5	16.3	15.9	15.2	15.8
Risk-weighted assets (RWAs) (in billions)	$	1,192.0	1,185.6	1,213.1	1,262.8	1,245.9	1	(4)
Advanced Approach:
CET1		11.9 %	11.5	11.1	11.4	11.9
Tier 1 capital		13.7	13.2	12.8	13.1	13.6
Total capital		16.1	15.7	15.3	15.6	16.2
Risk-weighted assets (RWAs) (in billions) (3)	$	1,158.1	1,172.0	1,195.4	1,181.3	1,165.1	(1)	(1)
Tier 1 leverage ratio		8.3 %	8.1	8.0	8.0	8.3
Liquidity Coverage Ratio (LCR)		133	134	129	121	120
Supplementary Leverage Ratio (SLR)		8.1	7.8	7.5	6.8	7.1
Total Loss Absorbing Capacity (TLAC)		25.8	25.8	25.3	23.3	23.3

1. Ratios and metrics for December 31, 2020, are preliminary estimates.
2. See tables on pages 25 and 26 for more information on Common Equity Tier 1 (CET1), tier 1 capital, and total capital. Beginning January 1, 2018, the requirements for calculating CET1 and tier 1 capital, along with RWAs became fully phased-in. Accordingly, the information presented reflects fully phased-in CET1, tier 1 capital, and RWAs, but reflects total capital still in accordance with Transition Requirements.
3. Amount for December 31, 2019, has been revised as a result of a decrease in RWAs under the Advanced Approach due to the correction of duplicated operational loss amounts.

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