WELLS FARGO COMPANYMN
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
WFC$83.94-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-02.
0000072971-24-000129
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Financial Review)Current report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0000072971-24-000185
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Financial Review)The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 569 previous paragraphs and 610 current paragraphs.
411 unchanged; 130 reworded; 40 added; 23 removed; 5 previous and 29 current paragraphs rearranged.
Tables are not compared: 106 previous and 110 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (40)
Current report
Capital Matters
Current report
On June 28, 2024, the Company announced that it had completed the 2024 Comprehensive Capital Analysis and Review (CCAR) stress test process. The Company expects its stress capital buffer (SCB) to be 3.80% for the period October 1, 2024, through September 30, 2025. The FRB has indicated that it will publish the Company's final SCB by August 31, 2024. Our SCB for the period October 1, 2023, through September 30, 2024, is 2.90%.
Current report
On July 23, 2024, the Board approved an increase to the Company's third quarter 2024 common stock dividend to $0.40 per share.
Current report
In July 2024, we issued $2.0 billion of our Preferred Stock, Series FF.
Current report
Wells Fargo net income for second quarter 2024 was $4.9 billion ($1.33 diluted EPS), compared with $4.9 billion ($1.25 diluted EPS) in the same period a year ago. Net income was stable in second quarter 2024, compared with the same period a year ago, predominantly due to a $1.2 billion decrease in net interest income, a $321 million increase in income tax expense, and a $306 million increase in noninterest expense, offset by a $1.4 billion increase in noninterest income and a $477 million decrease in provision for credit losses.
Current report
Investment advisory and other asset-based fees increased driven by higher asset-based fees reflecting higher market valuations.
Current report
Investment advisory and other asset-based fees increased driven by higher asset-based fees reflecting higher market valuations.
Current report
•higher unrealized gains on nonmarketable equity securities from our venture capital investments.
Current report
Other income increased driven by impacts related to the expanded use of the proportional amortization method of accounting for renewable energy tax credit investments as a result of our adoption of ASU 2023-02 in first quarter 2024.
Current report
Noninterest expense decreased due to lower operating costs and the impact of efficiency initiatives, partially offset by higher advertising and occupancy expense.
Current report
Noninterest expense decreased due to:
Current report
(1)In second quarter 2024, we prospectively transferred our commercial auto business from Asset-Based Lending and Leasing to Middle Market Banking.
Current report
•lower net interest income reflecting the impact of higher interest rates on deposit costs;
Current report
Revenue decreased driven by:
Current report
•lower net interest income reflecting the impact of higher interest rates on deposit costs;
Current report
(1)In second quarter 2024, we prospectively transferred our commercial auto business from Asset-Based Lending and Leasing to Middle Market Banking.
Current report
•higher net gains from trading activities driven by higher revenue in equities, including a gain of $122 million related to an exchange of shares of Visa Inc. Class B common stock, and structured products; and
Current report
•lower net interest income driven by lower deposit balances and higher deposit costs.
Current report
Noninterest expense increased reflecting:
Current report
•higher operating losses;
Current report
•lower operating costs.
Current report
•higher investment advisory and other asset-based fees driven by higher asset-based fees reflecting higher market valuations;
Current report
Noninterest expense increased reflecting:
Current report
•higher operating losses;
Current report
•lower operating costs.
Current report
The Federal Trade Commission issued a final rule that broadly prohibits worker non-compete provisions. The rule has an effective date of September 4, 2024, but is pending the results of third party litigation challenging the rule. If the rule becomes effective in its current form, we would expect an acceleration of expenses related to certain deferred compensation award programs for retired and retirement eligible employees in our WIM business that feature a non-compete provision as a condition of award vesting.
Current report
Revenue increased driven by higher net gains from equity securities reflecting higher unrealized gains on nonmarketable equity securities from our venture capital investments.
Current report
Noninterest expense increased due to:
Current report
•an additional expense of $52 million for the estimated FDIC special assessment.
Current report
Noninterest expense increased due to:
Current report
•an additional expense of$336 millionfor the estimated FDIC special assessment.
Current report
•growth in commercial deposits;
Current report
On July 23, 2024, the Board approved an increase to the Company's third quarter 2024 common stock dividend to $0.40 per share.
Current report
Rules adopted by the FRB and the FDIC under the Dodd-Frank Act require large financial institutions, including Wells Fargo, to prepare and periodically submit resolution plans, also known as “living wills,” designed to facilitate their rapid and orderly resolution in the event of material financial distress or failure. Under the rules, rapid and orderly resolution means a reorganization or liquidation of the covered company under the U.S. Bankruptcy Code that can be accomplished in a reasonable period of time and in a manner that substantially mitigates the risk that failure would have serious adverse effects on the financial stability of the United States. In addition to the Company’s resolution plan, our national bank subsidiary, Wells Fargo Bank, N.A. (the “Bank”), is also required to prepare and periodically submit a resolution plan. If the FRB and/or FDIC determine that our resolution plan has deficiencies, they may impose more stringent capital, leverage or liquidity requirements on us or restrict our growth, activities or operations until we adequately remedy the deficiencies. If the FRB and/or FDIC ultimately determine that we have been unable to remedy any deficiencies, they could require us to divest certain assets or operations. On June 21, 2024, the FRB and FDIC announced that the Company’s most recent resolution plan did not have any shortcomings or deficiencies.
Current report
If Wells Fargo were to fail, it may be resolved in a bankruptcy proceeding or, if certain conditions are met, under the resolution regime created by the Dodd-Frank Act known as the “orderly liquidation authority.” The orderly liquidation authority allows for the appointment of the FDIC as receiver for a systemically important financial institution that is in default or in danger of default if, among other things, the resolution of the institution under the U.S. Bankruptcy Code would have serious adverse effects on financial stability in the United States. If the FDIC is appointed as receiver for the Parent, then the orderly liquidation authority, rather than the U.S. Bankruptcy Code, would determine the powers of the receiver and the rights and obligations of our security holders. The FDIC’s orderly liquidation authority requires that security holders of a company in receivership bear all losses before U.S. taxpayers are exposed to any losses. There are substantial differences in the rights of creditors between the orderly liquidation authority and the U.S. Bankruptcy Code, including the right of the FDIC to disregard the strict priority of creditor claims under the U.S. Bankruptcy Code in certain circumstances and the use of an administrative claims procedure instead of a judicial procedure to determine creditors’ claims.
Current report
The strategy described in our most recent resolution plan is a single point of entry strategy, in which the Parent would be the only material legal entity to enter resolution proceedings. However, the strategy described in our resolution plan is not binding in the event of an actual resolution of Wells Fargo, whether conducted under the U.S. Bankruptcy Code or by the FDIC under the orderly liquidation authority. The FDIC has announced that a single point of entry strategy may be a desirable strategy under its implementation of the orderly liquidation authority, but not all aspects of how the FDIC might exercise this authority are known and additional rulemaking is possible.
Current report
To facilitate the orderly resolution of systemically important financial institutions in case of material distress or failure, federal banking regulations require that institutions, such as Wells Fargo, maintain a minimum amount of equity and unsecured debt to absorb losses and recapitalize operating subsidiaries. Federal
Current report
Regulatory Matters(continued)
Current report
banking regulators have also required measures to facilitate the continued operation of operating subsidiaries notwithstanding the failure of their parent companies, such as limitations on parent guarantees, and have issued guidance encouraging institutions to take legally binding measures to provide capital and liquidity resources to certain subsidiaries to facilitate an orderly resolution. In response to the regulators’ guidance and to facilitate the orderly resolution of the Company, on June 28, 2017, the Parent entered into a support agreement, as amended and restated on June 26, 2019 (the “Support Agreement”), with WFC Holdings, LLC, an intermediate holding company and subsidiary of the Parent (the “IHC”), the Bank, Wells Fargo Securities, LLC (“WFS”), Wells Fargo Clearing Services, LLC (“WFCS”), and certain other subsidiaries of the Parent designated from time to time as material entities for resolution planning purposes (the “Covered Entities”) or identified from time to time as related support entities in our resolution plan (the “Related Support Entities”). Pursuant to the Support Agreement, the Parent transferred a significant amount of its assets, including the majority of its cash, deposits, liquid securities and intercompany loans (but excluding its equity interests in its subsidiaries and certain other assets), to the IHC and will continue to transfer those types of assets to the IHC from time to time. In the event of our material financial distress or failure, the IHC will be obligated to use the transferred assets to provide capital and/or liquidity to the Bank, WFS, WFCS, and the Covered Entities pursuant to the Support Agreement. Under the Support Agreement, the IHC will also provide funding and liquidity to the Parent through subordinated notes and a committed line of credit, which, together with the issuance of dividends, is expected to provide the Parent, during business as usual operating conditions, with the same access to cash necessary to service its debts, pay dividends, repurchase its shares, and perform its other obligations as it would have had if it had not entered into these arrangements and transferred any assets. If certain liquidity and/or capital metrics fall below defined triggers, or if the Parent’s board of directors authorizes it to file a case under the U.S. Bankruptcy Code, the subordinated notes would be forgiven, the committed line of credit would terminate, and the IHC’s ability to pay dividends to the Parent would be restricted, any of which could materially and adversely impact the Parent’s liquidity and its ability to satisfy its debts and other obligations, and could result in the commencement of bankruptcy proceedings by the Parent at an earlier time than might have otherwise occurred if the Support Agreement were not implemented. The respective obligations under the Support Agreement of the Parent, the IHC, the Bank, and the Related Support Entities are secured pursuant to a related security agree…
Excerpt shortened here; the source contains the full paragraph.
Current report
In addition to our resolution plans, we must also prepare and periodically submit to the FRB a recovery plan that identifies a range of options that we may consider during times of idiosyncratic or systemic economic stress to remedy any financial weaknesses and restore market confidence without extraordinary government support. Recovery options include the possible sale, transfer or disposal of assets, securities, loan portfolios or businesses. The Bank must also prepare and periodically submit to the OCC a recovery plan that sets forth the Bank’s plan to remain a going concern when the Bank is experiencing considerable financial or operational stress, but has not yet deteriorated to the point where liquidation or resolution is imminent. If either the FRB or the OCC determines that our recovery plan is deficient, they may impose fines, restrictions on our business or ultimately require us to divest assets.
Removed paragraphs (23)
Previous report
Other income increased driven by a gain related to earn-out provisions from the sale of Wells Fargo Asset Management in 2021.
Previous report
Personnel expense increased due to:
Previous report
•lower severance expense.
Previous report
(continued on following page)
Previous report
(1)In first quarter 2024, we transferred our small business credit card business from Consumer, Small and Business Banking to Credit Card. Prior period balances have been revised to conform with the current period presentation.
Previous report
Noninterest expense was stable reflecting:
Previous report
offset by:
Previous report
•higher operating losses due to higher expense for customer remediation activities; and
Previous report
(1)In first quarter 2024, we transferred our small business credit card business from Consumer, Small and Business Banking to Credit Card. Prior period balances have been revised to conform with the current period presentation.
Previous report
•lower net interest income reflecting higher deposit costs;
Previous report
•loan growth in Asset-Based Lending and Leasing due to an increase in client working capital needs;
Previous report
Revenue increased driven by:
Previous report
Revenue increased driven by:
Previous report
Noninterest expense increased driven by:
Previous report
•the impact of efficiency initiatives.
Previous report
Noninterest expense increased driven by:
Previous report
•higher operating losses due to higher expense for customer remediation activities; and
Previous report
•an additional expense of$284 millionfor the estimated FDIC special assessment.
Previous report
•growth in commercial deposits; and
Previous report
•consumer and small business deposit outflows.
Previous report
(4)The Tier 1 leverage ratio consists of Tier 1 capital divided by total average assets, excluding goodwill and certain other items as determined under the rule.
Previous report
Regulatory Developments in Response to Climate Change Federal, state, and non-U.S. governments and government agencies have demonstrated increased attention to the impacts and potential risks associated with climate change. For example, federal banking regulators are reviewing the implications of climate change on the financial stability of the United States and have issued guidance on the identification and management by large banks of climate-related financial risks. In addition, the Securities and Exchange Commission (SEC) adopted final rules requiring public companies to disclose certain climate-related information, including climate-related risks and impacts, certain greenhouse gas emissions, climate-related targets and goals, and governance of climate-related risks and relevant risk management processes. Similarly, California’s state legislature finalized climate-related disclosure laws, while the European Union finalized its Corporate Sustainability Reporting Directive. The approaches taken by various governments and government agencies can vary significantly, evolve over time, and sometimes conflict. Any current or future rules, regulations, and guidance related to climate change and its impacts could require us to change certain of our business practices, reduce our revenue and earnings, impose additional costs on us, subject us to legal or regulatory proceedings, or otherwise adversely affect our business operations and/or competitive position.
Previous report
Forward-Looking Statements(continued)
Reworded paragraphs (130)
Previous wording
Wells Fargo & Company is a leading financial services company that has approximately $1.96 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. Wells Fargo ranked No. 47 on Fortune’s 2023 rankings of America’s largest corporations. We ranked fourth in assets and third in the market value of our common stock among all U.S. banks at March 31, 2024.
Current wording
Wells Fargo & Company is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. Wells Fargo ranked No. 34 on Fortune’s 2024 rankings of America’s largest corporations. We ranked fourth in assets and third in the market value of our common stock among all U.S. banks at June 30, 2024.
Previous wording
We have accrued for the probable and estimable costs related to our customer remediation activities, which amounts may change based on additional facts and information, as well as ongoing reviews and communications with our regulators. We had $1.0 billion and $819 million of accrued liabilities for customer remediation activities as of March 31, 2024, and December 31, 2023, respectively. As our ongoing reviews continue and as we continue to strengthen our risk and control infrastructure, we have identified and may in the future identify additional items or areas of potential concern. To the extent issues are identified, we will continue to assess any customer harm and provide remediation as appropriate.
Current wording
We have accrued for the probable and estimable costs related to our customer remediation activities, which amounts may change based on additional facts and information, as well as ongoing reviews and communications with our regulators. We had $678 million and $819 million of accrued liabilities for customer remediation activities as of June 30, 2024, and December 31, 2023, respectively. As our ongoing reviews continue and as we continue to strengthen our risk and control infrastructure, we have identified and may in the future identify additional items or areas of potential concern. To the extent issues are identified, we will continue to assess any customer harm and provide remediation as appropriate.
Previous wording
In November 2023, the Federal Deposit Insurance Corporation (FDIC) finalized a rule to recover losses to the FDIC deposit insurance fund as a result of bank failures in the first half of 2023. Under the rule, the FDIC will collect a special assessment based on an insured depository institution’s estimated amount of uninsured deposits. Upon the FDIC’s finalization of the rule, we expensed an estimated amount of our special assessment of $1.9 billion (pre-tax) in fourth quarter 2023. Subsequent to the filing of our 2023 Form 10-K, the FDIC provided an update on losses to the deposit insurance fund, and we expensed an additional $284 million (pre-tax) in first quarter 2024 for the estimated amount of the special assessment. We expect the ultimate amount of the special assessment may continue to change as the FDIC determines the actual net losses to the deposit insurance fund.
Current wording
In November 2023, the Federal Deposit Insurance Corporation (FDIC) finalized a rule to recover losses to the FDIC deposit insurance fund as a result of bank failures in the first half of 2023. Under the rule, the FDIC will collect a special assessment based on an insured depository institution’s estimated amount of uninsured deposits. Upon the FDIC’s finalization of the rule, we expensed an estimated amount of our special assessment of $1.9 billion (pre-tax) in fourth quarter 2023. During 2024, the FDIC provided updates on losses to the deposit insurance fund, and we expensed an additional $52 million and $336 million (pre-tax) in the second quarter and first half of 2024, respectively, for the estimated amount of the special assessment. We expect the ultimate amount of the special assessment may continue to change as the FDIC determines the actual net losses to the deposit insurance fund.
Previous wording
In first quarter 2024, we generated $4.6 billion of net income and diluted earnings per common share (EPS) of $1.20, compared with $5.0 billion of net income and diluted EPS of $1.23 in the same period a year ago. Financial performance for first quarter 2024, compared with the same period a year ago, included the following:
Current wording
In second quarter 2024, we generated $4.9 billion of net income and diluted earnings per common share (EPS) of $1.33, compared with $4.9 billion of net income and diluted EPS of $1.25 in the same period a year ago. In the first half of 2024, we generated $9.5 billion of net income and diluted EPS of $2.53, compared with $9.9 billion of net income and diluted EPS of $2.48 in the same period a year ago. Financial performance for the second quarter and first half of 2024, compared with the same periods a year ago, included the following:
Previous wording
•provision for credit losses reflected decreases for commercial real estate loans and auto loans, partially offset by increases for credit card loans;
Current wording
•provision for credit losses reflected decreases for auto loans, commercial real estate loans, and residential mortgage loans, partially offset by increases for credit card loans;
Previous wording
•noninterest expense increased due to higher operating losses, technology, telecommunications and equipment expense, and other expense driven by the estimated FDIC special assessment, partially offset by lower professional and outside services expense;
Current wording
•noninterest expense increased due to higher operating losses, and technology, telecommunications and equipment expense, partially offset by lower professional and outside services expense;
Previous wording
•average deposits decreased driven by reductions in Consumer Banking and Lending, Commercial Banking, and Wealth and Investment Management, partially offset by growth in Corporate and Investment Banking and Corporate.
Current wording
•average deposits decreased driven by reductions in Consumer Banking and Lending and Wealth and Investment Management, partially offset by growth in Corporate and Investment Banking and Corporate.
Previous wording
We maintained a strong capital position in first quarter 2024, with total equity of $182.7 billion at March 31, 2024, compared with $187.4 billion at December 31, 2023. In addition, capital and liquidity at March 31, 2024, included the following:
Current wording
We maintained a strong capital position in the first half of 2024, with total equity of $178.1 billion at June 30, 2024, compared with $187.4 billion at December 31, 2023. In addition, capital and liquidity at June 30, 2024, included the following:
Previous wording
•our Common Equity Tier 1 (CET1) ratio was 11.19% under the Standardized Approach (our binding ratio), which continued to exceed the regulatory minimum and buffers of 8.90%;
Current wording
•our Common Equity Tier 1 (CET1) ratio was 11.01% under the Standardized Approach (our binding ratio), which continued to exceed the regulatory minimum and buffers of 8.90%;
Previous wording
•our total loss absorbing capacity (TLAC) as a percentage of total risk-weighted assets was 25.10%, compared with the regulatory minimum of 21.50%; and
Current wording
•our total loss absorbing capacity (TLAC) as a percentage of total risk-weighted assets was 24.78%, compared with the regulatory minimum of 21.50%; and
Previous wording
•our liquidity coverage ratio (LCR) was 126%, which continued to exceed the regulatory minimum of 100%.
Current wording
•our liquidity coverage ratio (LCR) was 124%, which continued to exceed the regulatory minimum of 100%.
Previous wording
•The allowance for credit losses (ACL) for loans of $14.9 billion at March 31, 2024, decreased $226 million from December 31, 2023.
Current wording
•The allowance for credit losses (ACL) for loans of $14.8 billion at June 30, 2024, decreased $299 million from December 31, 2023.
Previous wording
•Our provision for credit losses for loans was $926 million in first quarter 2024, compared with $1.1 billion in the same period a year ago. The ACL for loans and the provision for credit losses for loans reflected decreases for commercial real estate loans and auto loans, partially offset by increases for credit card loans.
Current wording
•Our provision for credit losses for loans was $2.2 billion in the first half of 2024, compared with $3.0 billion in the same period a year ago. The ACL for loans and the provision for credit losses for loans reflected decreases for auto loans, commercial real estate loans, and residential mortgage loans, partially offset by increases for credit card loans.
Previous wording
•Commercial portfolio net loan charge-offs were $341 million, or 25 basis points of average commercial loans, in first quarter 2024, compared with net loan charge-offs of $63 million, or 5 basis points of average commercial loans, in the same period a year ago, due to higher losses in all commercial portfolios, primarily in our commercial real estate portfolio driven by the office property type.
Current wording
•Commercial portfolio net loan charge-offs were $468 million, or 35 basis points of average commercial loans, in second quarter 2024, compared with net loan charge-offs of $200 million, or 15 basis points, in the same period a year ago, due to higher losses in all commercial portfolios, primarily in our commercial real estate portfolio driven by the office property type.
Previous wording
•Consumer portfolio net loan charge-offs were $808 million, or 84 basis points of average consumer loans, in first quarter 2024, compared with net loan charge-offs of $541 million, or 56 basis points of average consumer loans, in the same period a year ago, due to higher losses in our credit card portfolio.
Current wording
•Consumer portfolio net loan charge-offs were $833 million, or 88 basis points of average consumer loans, in second quarter 2024, compared with net loan charge-offs of $564 million, or 58 basis points, in the same period a year ago, due to higher losses in our credit card portfolio.
Previous wording
•Nonperforming assets (NPAs) of $8.2 billion at March 31, 2024, decreased $203 million, or 2%, from December 31, 2023, driven by charge-offs and paydowns of commercial real estate nonaccrual loans, predominantly within the office property type. NPAs represented 0.89% of total loans at March 31, 2024.
Current wording
•Nonperforming assets (NPAs) of $8.7 billion at June 30, 2024, increased $207 million, or 2%, from December 31, 2023, driven by an increase in commercial real estate nonaccrual loans, predominantly within the office property type. NPAs represented 0.94% of total loans at June 30, 2024.
Previous wording
•Criticized loans in the commercial portfolio were $34.4 billion at March 31, 2024, compared with $33.0 billion at December 31, 2023, predominantly driven by an increase in criticized commercial and industrial loans.
Current wording
•Criticized loans in the commercial portfolio were $35.5 billion at June 30, 2024, compared with $33.0 billion at December 31, 2023, predominantly driven by increases in criticized commercial and industrial loans and criticized commercial real estate loans.
Previous wording
Wells Fargo net income for first quarter 2024 was $4.6 billion ($1.20 diluted EPS), compared with $5.0 billion ($1.23 diluted EPS) in the same period a year ago. Net income decreased in first quarter 2024, compared with the same period a year ago, predominantly due to a $1.1 billion decrease in net interest income and a $662 million increase in noninterest expense, partially offset by a $1.2 billion increase in noninterest income.
Current wording
Net income for the first half of 2024 was $9.5 billion ($2.53 diluted EPS), compared with $9.9 billion ($2.48 diluted EPS) in the same period a year ago. Net income decreased in the first half of 2024, compared with the same period a year ago, predominantly due to a $2.3 billion decrease in net interest income and a $1.0 billion increase in noninterest expense, partially offset by a $2.6 billion increase in noninterest income.
Previous wording
Net interest income and net interest margin decreased in first quarter 2024, compared with the same period a year ago, driven by the impact of higher interest rates on interest-bearing deposits and long-term debt, as well as lower loan balances, partially offset by higher interest rates on interest-earning assets.
Current wording
Net interest income and net interest margin decreased in both the second quarter and first half of 2024, compared with the same periods a year ago, driven by the impact of higher interest rates on interest-bearing deposits and long-term debt, as well as lower loan balances, partially offset by higher interest rates on interest-earning assets. Late in second quarter 2024, we increased pricing on sweep deposits in advisory brokerage accounts, which we expect will lower future net interest income.
Previous wording
Table 1 presents the individual components of net interest income and net interest margin. Net interest income and net interest margin are presented on a taxable-equivalent basis in Table 1 to consistently reflect income from taxable and tax-exempt loans and debt and equity securities based on a 21% federal statutory tax rate for the periods ended March 31, 2024 and 2023.
Current wording
Table 1 presents the individual components of net interest income and net interest margin. Net interest income and net interest margin are presented on a taxable-equivalent basis in Table 1 to consistently reflect income from taxable and tax-exempt loans and debt and equity securities. The calculation for taxable-equivalent basis was based on a federal statutory tax rate of 21%.
Previous wording
(3)Includes taxable-equivalent adjustments of $89 million, and $107 million for the quarters ended March 31, 2024 and 2023, respectively, predominantly related to tax-exempt income on certain loans and securities.
Current wording
(3)Includes taxable-equivalent adjustments of $89 million and $105 million for the quarters ended June 30, 2024 and 2023, respectively, and $178 million and $212 million for the first half of 2024 and 2023, respectively, predominantly related to tax-exempt income on certain loans and securities.
Previous wording
Net gains from equity securities increased driven bylower impairment of equity securities from our venture capital investments.
Current wording
Net gains (losses) from equity securities increased driven byhigher unrealized gains on nonmarketable equity securities from our venture capital investments.
Previous wording
Netgains from trading activities increased driven by higher revenue in structured products and foreign exchange, partially offset by lower revenue in rates and commodities.
Current wording
Netgains from trading activities increased driven by higher revenue in structured products, equities, and foreign exchange, partially offset by lower revenue in rates.
Previous wording
(1)Includes expenses for customer remediation activities of $428 million and $57 million for the quarters ended March 31, 2024 and 2023, respectively.
Current wording
(1)Includes expenses for customer remediation activities of $184 million and $106 million for second quarter 2024 and 2023, respectively, and $612 million and $163 million for the first half of 2024 and 2023, respectively.
Previous wording
•higher revenue-related compensation expense driven by higher fees in our Wealth and Investment Management business;
Current wording
Personnel expense decreased due tothe impact of efficiency initiatives, partially offset by higher revenue-related compensation expense driven by higher fees in our Wealth and Investment Management business.
Previous wording
Technology, telecommunications and equipment expense increased due to higher expense for software maintenance and licenses and for the amortization of internally developed software.
Current wording
Technology, telecommunications and equipment expense increaseddue to higher expense for the amortization of internally developed software.
Previous wording
Operating losses increased driven byhigher expense for customer remediation activities related to the further refinement of the remediation costs for historical mortgage lending and other consumer products matters. For additional
Current wording
Operating losses increased driven byhigher expense for legal actions and higher expense for customer remediation activities related to the further refinement of the remediation costs for historical mortgage lending and other consumer products matters.
Previous wording
Other expense increased reflecting an additional expense of$284 million for the estimated FDIC special assessment. For additional information on the FDIC’s special assessment, see Note 18 (Revenue and Expenses) to Financial Statements in this Report.
Current wording
Other expense increased reflecting an additional expense of$336 million for the estimated FDIC special assessment. For additional information on the FDIC’s special assessment, see Note 18 (Revenue and Expenses) to Financial Statements in this Report.
Previous wording
The increase in the effective income tax rate for first quarter 2024, compared with the same period a year ago, was driven by the impacts related to the expanded use of the proportional amortization method of accounting for renewable energy tax credit investments. For additional information on our adoption in first quarter 2024 of Accounting Standards Update (ASU) 2023-02 – Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report.
Current wording
The increase in the effective income tax rate for the second quarter and first half of 2024, compared with the same periods a year ago, was driven by the impacts related to the expanded use of the proportional amortization method of accounting for renewable energy tax credit investments. For additional information on our adoption in first quarter 2024 of Accounting Standards Update (ASU) 2023-02 – Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report.
Previous wording
(2)Return on allocated capital is segment net income (loss) applicable to common stock divided by segment average allocated capital. Segment net income (loss) applicable to common stock is segment net income (loss) less allocated preferred stock dividends.
Current wording
(1)Return on allocated capital is segment net income (loss) applicable to common stock divided by segment average allocated capital. Segment net income (loss) applicable to common stock is segment net income (loss) less allocated preferred stock dividends.
Previous wording
(3)Efficiency ratio is segment noninterest expense divided by segment total revenue (net interest income and noninterest income).
Current wording
(2)Efficiency ratio is segment noninterest expense divided by segment total revenue (net interest income and noninterest income).
Previous wording
(4)Digital and mobile active customers is based on the number of consumer and small business customers who have logged on via a digital or mobile device, respectively, in the prior 90 days. Digital active customers includes both online and mobile customers.
Current wording
(3)Digital and mobile active customers is based on the number of consumer and small business customers who have logged on via a digital or mobile device, respectively, in the prior 90 days. Digital active customers includes both online and mobile customers.
Previous wording
(5)Deposit spread is (i) the internal funds transfer pricing credit on segment deposits minus interest paid to customers for segment deposits, divided by (ii) average segment deposits.
Current wording
(4)Deposit spread is (i) the internal funds transfer pricing credit on segment deposits minus interest paid to customers for segment deposits, divided by (ii) average segment deposits.
Previous wording
(6)Debit card purchase volume and transactions reflect combined activity for both consumer and business debit card purchases.
Current wording
(5)Debit card purchase volume and transactions reflect combined activity for both consumer and business debit card purchases.
Previous wording
(7)Excludes residential mortgage loans subserviced for others.
Current wording
(6)Excludes residential mortgage loans subserviced for others.
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(8)Excludes residential mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).
Current wording
(7)Excludes residential mortgage loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).
Previous wording
(9)Excludes loans held for sale.
Current wording
(8)Excludes loans held for sale.
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(10)Delinquency balances exclude nonaccrual loans.
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(9)Delinquency balances exclude nonaccrual loans.
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Revenue decreased driven by lower net interest income due to lower deposit balances.
Current wording
Revenue decreased driven by lower net interest income due to lower deposit balances and lower loan balances.
Previous wording
Provision for credit losses reflected a decrease driven by a lower allowance for auto loans, partially offset by a higher allowance for credit card and small business loans, as well as higher net charge-offs for credit card loans.
Current wording
Provision for credit losses reflected a decrease in the allowance for auto loans and residential mortgage loans, partially offset by a higher allowance for credit card loans.
Showing the first 40 of 130 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
For additional information about capital planning, see the “Capital Management – Capital Planning and Stress Testing” section in this Report.
Current report — wording carried from elsewhere
Netgains from trading activities increased driven by higher revenue in equities and structured products.
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Other income increased driven by impacts related to the expanded use of the proportional amortization method of accounting for renewable energy tax credit investments as a result of our adoptionin first quarter 2024 of Accounting Standards Update (ASU) 2023-02 – Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. For additional information on our adoption of ASU 2023-02, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report.
Current report — wording carried from elsewhere
Deposit-related fees increased reflecting higher treasury management fees on commercial accounts driven by increased transaction service volumes and repricing.
Current report — wording carried from elsewhere
Investment banking fees increased due toincreased activity across all products.
Current report — wording carried from elsewhere
Net gains (losses) from equity securities increased driven by:
Current report — wording carried from elsewhere
•lower impairment of equity securities from our venture capital investments; and
Current report — wording carried from elsewhere
Operating losses increased driven byhigher expense for legal actions and higher expense for customer remediation activities related to the further refinement of the remediation costs for historical mortgage lending and other consumer products matters. For additional information on customer remediation activities, see the “Overview” section above.
Current report — wording carried from elsewhere
Personnel expense increased due to higher revenue-related compensation expense driven by higher fees in our Wealth and Investment Management business, partially offset by the impact of efficiency initiatives.
Current report — wording carried from elsewhere
Technology, telecommunications and equipment expense increaseddue to higher expense for the amortization of internally developed software.
Current report — wording carried from elsewhere
As previously disclosed, we have outstanding legal actions and customer remediation activities that could impact operating losses in the coming quarters.
Current report — wording carried from elsewhere
Professional and outside services expense decreased driven by efficiency initiatives to reduce our spending on consultants and contractors.
Current report — wording carried from elsewhere
Advertising and promotion expense increased due to higher marketing volume.
Current report — wording carried from elsewhere
Provision for credit losses reflected an increase in the allowance for credit card loans, partially offset by a lower allowance for auto loans and residential mortgage loans.
Current report — wording carried from elsewhere
Revenue decreased driven by lower net interest income due to lower deposit balances and lower loan balances.
Current report — wording carried from elsewhere
Noninterest expense decreased due to lower personnel expense reflecting the impact of efficiency initiatives, and lower operating costs.
Current report — wording carried from elsewhere
•higher deposit-related fees reflecting higher treasury management fees on commercial accounts driven by increased transaction service volumes and repricing.
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•higher investment banking fees due to increased activity across all products;
Current report — wording carried from elsewhere
Provision for credit losses reflected a decrease in the allowance for credit losses, primarily driven by commercial real estate loans.
Current report — wording carried from elsewhere
•lower net interest income driven by higher deposit costs and lower loan balances.
Current report — wording carried from elsewhere
Noninterest expense increased driven by higher operating costs, partially offset by the impact of efficiency initiatives.
Current report — wording carried from elsewhere
•higher personnel expense driven by higher revenue-related compensation; and
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•the impact of efficiency initiatives; and
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performance as well as asset inflows and outflows. Advisory accounts include assets that are financial advisor-directed and separately managed by third-party managers as well as certain client-directed brokerage assets where we earn a fee for advisory and other services, but do not have investment discretion.
Current report — wording carried from elsewhere
$18.3 billion of CRE mortgage loans classified as criticized at June 30, 2024, compared with $17.5 billion at December 31, 2023. We had $1.2 billion of CRE construction loans classified as criticized at June 30, 2024, compared with $830 million at December 31, 2023. The increase in criticized CRE loans was predominantly driven by the apartments property type, partially offset by the institutional property type.
Current report — wording carried from elsewhere
Management – Asset/Liability Management – Market Risk” section in our 2023 Form 10-K.
Current report — wording carried from elsewhere
During the first half of 2024, we issued $676 million of common stock, substantially all of which was issued in connection with employee compensation and benefits, and we repurchased 213 million shares of common stock at a cost of $12.1 billion. We paid $3.1 billion of common and preferred stock dividends during the first half of 2024.
Current report — wording carried from elsewhere
Wells Fargo. The FRB assesses, among other things, the overall financial condition, risk profile, and capital adequacy of BHCs when evaluating their capital plans.
Current report — wording carried from elsewhere
“Living Will” Requirements and Related Matters
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Previous report — wording carried elsewhere
Investment advisory and other asset-based fees increased reflecting higher market valuations.
Previous report — wording carried elsewhere
information on customer remediation activities, see the “Overview” section above.
Previous report — wording carried elsewhere
Total loans (average and period-end) increased driven by:
Previous report — wording carried elsewhere
As a global systemically important bank (G-SIB), we are also subject to the FRB’s rule implementing an additional capital surcharge between 1.00-4.50% on the risk-based capital ratio requirements of G-SIBs. Under the rule, we must annually calculate our surcharge under two methods and use the higher
Previous report — wording carried elsewhere
surcharge, the increase takes effect in two calendar years. Our