Q1 2023 quarterly supplement

1Q23 Quarterly Supplement

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS

In first quarter 2023, we adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2018-12 - Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. We adopted ASU 2018-12 with retrospective application, which required revision of prior period financial statements. Prior period risk-based capital and certain other regulatory related metrics were not revised. For additional information, including the financial statement line items impacted by the adoption of ASU 2018-12, see page 28.

	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	9
Commercial Banking	11
Corporate and Investment Banking	13
Wealth and Investment Management	15
Corporate	16
Credit-Related Information
Consolidated Loans Outstanding - Period-End Balances, Average Balances, and Average Interest Rates	17
Net Loan Charge-offs	18
Changes in Allowance for Credit Losses for Loans	19
Allocation of the Allowance for Credit Losses for Loans	20
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)	21
Commercial and Industrial Loans and Lease Financing by Industry	22
Commercial Real Estate Loans by Property Type	23
Equity
Tangible Common Equity	24
Risk-Based Capital Ratios Under Basel III - Standardized Approach	26
Risk-Based Capital Ratios Under Basel III - Advanced Approach	27
Other
Adoption of ASU 2018-12	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 March 31, 2023, 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		Mar 31, 2023
							% Change from
(in millions, except ratios and per share amounts)		Mar 31,	Dec 31,	Sep 30,	Jun 30,	Mar 31,		Dec 31,	Mar 31,
	2023	2022	2022	2022	2022	2022	2022
Selected Income Statement Data
Total revenue	$	20,729	20,034	19,566	17,040	17,728	3 %	17
Noninterest expense		13,676	16,186	14,306	12,862	13,851	(16)	(1)
Pre-taxpre-provision profit (PTPP) (1)		7,053	3,848	5,260	4,178	3,877	83	82
Provision for credit losses (2)		1,207	957	784	580	(787)	26	253
Wells Fargo net income		4,991	3,155	3,592	3,142	3,788	58	32
Wells Fargo net income applicable to common stock		4,713	2,877	3,313	2,863	3,509	64	34
Common Share Data
Diluted earnings per common share		1.23	0.75	0.86	0.75	0.91	64	35
Dividends declared per common share		0.30	0.30	0.30	0.25	0.25		-	20
Common shares outstanding		3,763.2	3,833.8	3,795.4	3,793.0	3,789.9	(2)	(1)
Average common shares outstanding		3,785.6	3,799.9	3,796.5	3,793.8	3,831.1		-	(1)
Diluted average common shares outstanding		3,818.7	3,832.7	3,825.1	3,819.6	3,868.9		-	(1)
Book value per common share (3)	$	43.02	41.98	41.36	41.72	42.18	2	2
Tangible book value per common share (3)(4)		35.87	34.98	34.29	34.66	35.11	3	2
Selected Equity Data (period-end)
Total equity		183,220	182,213	178,478	179,798	181,597	1	1
Common stockholders' equity		161,893	160,952	156,983	158,260	159,876	1	1
Tangible common equity (4)		134,992	134,090	130,151	131,464	133,052	1	1
Performance Ratios
Retuon average assets (ROA) (5)		1.09 %	0.67	0.76	0.66	0.80
Retuon average equity (ROE) (6)		11.7	7.1	8.1	7.2	8.7
Retuon average tangible common equity (ROTCE) (4)		14.0	8.5	9.8	8.7	10.4
Efficiency ratio (7)		66	81	73	75	78
Net interest margin on a taxable-equivalent basis		3.20	3.14	2.83	2.39	2.16
Average deposit cost		0.83	0.46	0.14	0.04	0.03

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.
Includes provision for credit losses for loans, debt securities, and interest-earning deposits with banks.
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.
Tangible common equity, tangible book value per common share, and retuon 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 24 and 25.
Represents Wells Fargo net income divided by average assets.
Represents Wells Fargo net income applicable to common stock divided by average common stockholders' equity.
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		Mar 31, 2023
							% Change from
($ in millions, unless otherwise noted)		Mar 31,	Dec 31,	Sep 30,	Jun 30,	Mar 31,		Dec 31,	Mar 31,
	2023	2022	2022	2022	2022	2022	2022
Selected Balance Sheet Data (average)
Loans	$	948,651	948,517	945,465	926,567	898,005		- %	6
Assets		1,863,676	1,875,191	1,880,689	1,902,571	1,919,397	(1)	(3)
Deposits		1,356,694	1,380,459	1,407,851	1,445,793	1,464,072	(2)	(7)
Selected Balance Sheet Data (period-end)
Debt securities		511,597	496,808	502,035	516,772	535,916	3	(5)
Loans		947,991	955,871	945,906	943,734	911,807	(1)	4
Allowance for credit losses for loans		13,705	13,609	13,225	12,884	12,681	1	8
Equity securities		60,610	64,414	59,560	61,774	70,755	(6)	(14)
Assets		1,886,400	1,881,020	1,877,719	1,881,141	1,939,709		-	(3)
Deposits		1,362,629	1,383,985	1,398,151	1,425,153	1,481,354	(2)	(8)
Headcount (#) (period-end)		235,591	238,698	239,209	243,674	246,577	(1)	(4)
Capital and other metrics (1)
Risk-based capital ratios and components (2):
Standardized Approach:
Common Equity Tier 1 (CET1)		10.8 %	10.6	10.3	10.4	10.5
Tier 1 capital		12.3	12.1	11.9	11.9	12.0
Total capital		15.1	14.8	14.6	14.6	14.7
Risk-weighted assets (RWAs) (in billions)	$	1,244.0	1,259.9	1,255.6	1,253.6	1,265.5	(1)	(2)
Advanced Approach:
Common Equity Tier 1 (CET1)		12.0 %	12.0	11.8	11.6	11.8
Tier 1 capital		13.7	13.7	13.5	13.3	13.5
Total capital		15.9	15.9	15.7	15.6	15.9
Risk-weighted assets (RWAs) (in billions)	$	1,119.5	1,112.3	1,104.1	1,121.6	1,119.5	1	-
Tier 1 leverage ratio		8.4 %	8.3	8.0	8.0	8.0
Supplementary Leverage Ratio (SLR)		7.0	6.9	6.7	6.6	6.6
Total Loss Absorbing Capacity (TLAC) Ratio (3)		23.3	23.3	23.0	22.7	22.3
Liquidity Coverage Ratio (LCR) (4)		122	122	123	121	119

Ratios and metrics for March 31, 2023, are preliminary estimates.
See the tables on pages 26 and 27 for more information on CET1, tier 1 capital, and total capital.
Represents TLAC divided by risk-weighted assets (RWAs), which is our binding TLAC ratio, determined by using the greater of RWAs under the Standardized and Advanced Approaches.
Represents average high-quality liquid assets divided by average 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			Mar 31, 2023
								% Change from
(in millions, except per share amounts)		Mar 31,	Dec 31,	Sep 30,	Jun 30,	Mar 31,		Dec 31,	Mar 31,
	2023	2022	2022	2022	2022		2022	2022
Interest income	$	19,356	17,793	14,494	11,556	10,181	9 %	90
Interest expense		6,020	4,360	2,396	1,358	960	38	527
Net interest income		13,336	13,433	12,098	10,198	9,221	(1)	45
Noninterest income
Deposit-related fees		1,148	1,178	1,289	1,376	1,473	(3)	(22)
Lending-related fees		356	344	358	353	342	3	4
Investment advisory and other asset-based fees		2,114	2,049	2,111	2,346	2,498	3	(15)
Commissions and brokerage services fees		619	601	562	542	537	3	15
Investment banking fees		326	331	375	286	447	(2)	(27)
Card fees		1,033	1,095	1,119	1,112	1,029	(6)	-
Mortgage banking		232	79	324	287	693	194	(67)
Net gains from trading activities		1,342	552	900	446	218	143	516
Net gains from debt securities		-	-	6	143	2		NM	(100)
Net gains (losses) from equity securities		(357)	(733)	(34)	(615)	576	51	NM
Lease income		347	287	322	333	327	21	6
Other		233	818	136	233	365	(72)	(36)
Total noninterest income		7,393	6,601	7,468	6,842	8,507	12	(13)
Total revenue		20,729	20,034	19,566	17,040	17,728	3	17
Provision for credit losses (1)		1,207	957	784	580	(787)	26	253
Noninterest expense
Personnel		9,415	8,415	8,212	8,442	9,271	12	2
Technology, telecommunications and equipment		922	902	798	799	876	2	5
Occupancy		713	722	732	705	722	(1)	(1)
Operating losses		267	3,517	2,218	576	673	(92)	(60)
Professional and outside services		1,229	1,357	1,235	1,310	1,286	(9)	(4)
Leases (2)		177	191	186	185	188	(7)	(6)
Advertising and promotion		154	178	126	102	99	(13)	56
Restructuring charges		-	-	-	-	5		NM	(100)
Other		799	904	799	743	731	(12)	9
Total noninterest expense		13,676	16,186	14,306	12,862	13,851	(16)	(1)
Income before income tax expense (benefit)		5,846	2,891	4,476	3,598	4,664	102	25
Income tax expense (benefit)		966	(29)	912	622	746		NM	29
Net income before noncontrolling interests		4,880	2,920	3,564	2,976	3,918	67	25
Less: Net income (loss) from noncontrolling interests		(111)	(235)	(28)	(166)	130	53	NM
Wells Fargo net income	$	4,991	3,155	3,592	3,142	3,788	58 %	32
Less: Preferred stock dividends and other		278	278	279	279	279		-	-
Wells Fargo net income applicable to common stock	$	4,713	2,877	3,313	2,863	3,509	64 %	34
Per share information
Earnings per common share	$	1.24	0.76	0.87	0.75	0.92	63 %	35
Diluted earnings per common share		1.23	0.75	0.86	0.75	0.91	64	35

NM - Not meaningful

Includes provision for credit losses for loans, debt securities, and interest-earning deposits with banks.
Represents expenses for assets we lease to customers.

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Wells Fargo & Company published this content on 14 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 April 2023 10:56:40 UTC.

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