Wells Fargo May 2011

8/6/2019 Wells Fargo May 2011

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Barclays Capital Americas Select Conference

John Stumpf

C airman an C ie Executive O icer

© 2011 Wells Fargo Bank, N.A. All rights reserved.

May 23, 2011





Overview

Leading franchise

Diversified business model

Strong, consistent and high-quality earnings

Growth o ortunities

Expense discipline

gn can mprovemen n cre qua y

Strong capital position

2



Wells Fargo vision

We want to satisfy all our customers’

financially, be the premier provider

our markets, and be known as one

’ ”.

3



Wells Fargo serves consumers and businesses in morecommunities than any other U.S. Bank

▪ 70+MM customers

▪ 9,163 stores

Wells Fargo Bank stores

Wachovia Bank stores

4

Wells Fargo Advisors offices

Wells Fargo Home Mortgage stores

As of 1Q11.



Distribution breadth and depth

Store Distribution

Retail banking stores 6,300

Sales Force

Platform bankers 31,100

Wells Fargo Advisors offices 1,368

Wholesale stores 765

Mort a e stores 730

Financial advisors (1) 15,200

Home Mortgage consultants 11,000

ATMs 12,112

Online banking customers 19.4mm

5

As of March 31, 2011.(1) Series 7 brokers.



Fulfilling our responsibility to communities

Credit extended (1) since Wachovia merger: $1.5 trillion

Residential real estate originations since Wachovia merger: $890 billion

Mortgage loan modifications since Wachovia merger: 665,000

Wells Fargo team members (FTEs): 270,200

FORTUNE: World’s 41st Most Admired Company

BARRON’S: One of World’s 50 Most Respected Companies

NEWSWEEK: Among America's Top 50 Greenest Big Companies

DIVERSITY INC: Among the Top 50 Companies For Diversity

6

As of March, 31 2011.Wachovia merger completed on December 31, 2008.(1) Domestic lending commitments and origination activity.



Breadth of product/business lines

Deposits #2 in U.S. (1)

Residential mortgage#1 Mortgage originator (2)

#2 Mortgage servicing portfolio (2)

Lending

#1 Small business banking (SBA lender) (3)

#1 Commercial real estate originator (4)

#1 Used car lender (5)

#2 Arranger of asset-based finance (6)

#3 Commercial loan syndications (8)

Investment banking#1 Real estate loan syndications (lead arranger) (6)

#7 U.S. equity capital markets bookrunner(9)

10 -

Wealth Management/ Brokerage

#2 Bank-owned mutual fund family (11)

#2 Annuity distributor (based on sales) (12)

#3 Retail brokerage (based on FAs and client assets) (13)

#4 Wealth mana ement rovider based on AUM (14)

Card Services#2 Debit card issuer (15)

#1 U.S. bank managed remittance network overseas (16)

7

(1) FDIC data, June 2010. (2) Inside Mortgage Finance, 4/29/11 (3) CRA data, 2009. (4) Based on volume and dollars in the U.S. Mortgage Bankers Association,2010(5) AutoCount, 2010. (6) Thomson Reuters, 1Q11. (7) Individual company reports, 2010. (8) Bookrunner by number of transactions, Thomson Reuters, 1Q11. (9)SDC, 1Q11. (10) Business Insurance Magazine, July 2010. (11) Strategic Insight, 12/31/10. (12) SunLife Distributer Roundtable, May 2010. (13) Internal and peerreports, 12/31/10. (14) Barron’s, September 2010. (15) Nilson Report, April 2011. (16) Inter-American Dialogue, 6/18/10.



The Wells Fargo brand is ranked as oneof the most valuable in the world

Brand strategy objectives:

Guide expression and customerexperience

BrandZ Top 100 Most ValuableGlobal Brands (1)

#16 Gain new interest in Wells Fargo

Provide momentum for cross-sell

Create marketing efficiencies

Reinforce team member pride

Solidify our leadership Ranked most valuable U.S.

financial services brand

8

(1) BrandZ Top 100 Most Valuable Global Brands. Millward Brown Optimor, May 2011.



Broad-based revenues and earnings

($ in millions, 12 months ending 3/31/11)

Net Income (1)Revenues

Wholesale

$6,316$7,750

CommunityBanking

$53,162 WBR

an ng

$22,462 CommunityBanking Wholesale

Banking

$1,062

,

WBR

1Q11 ROACommunity Banking 1.16%Wholesale Banking 1.68%

9

ea , ro erage e remen .

(1) Trailing twelve months segment net income after-tax excludes other net losses of $1,554 million which includes Wachovia integration expenses and theelimination of items that are included in both Community Banking and Wealth, Brokerage & Retirement relating primarily to wealth management customersserviced, and products sold, in the stores.



Our business model has produced significantly higheroperating margins than peer average over the past 10 years

NIM ROA

Net Interest Margin(10 year average 2001-2010)

Return on Assets(10 year average 2001-2010)

.

3.36%

3.05%

1.37%

0.95%

2.43% 0.79%

0.64%

WFC C BAC JPM WFC BAC C JPM

10

Source: SNL. Data through 4Q10.



And remained strong in the first quarter

NIM ROA

Net Interest Margin(1Q11)

Return on Assets(1Q11)

4.05%

2.91%2.89%

1.23%

1.07%

.

0.63%

0.36%

WFC C JPM BAC WFC JPM C BAC

11

Source: SNL.



Cross-sell, convenience and customer retention have produceda significant and sustainable advantage in core deposits

Percent of funding from deposits( 3 Q 2 0 1 0 )

Percent of deposits in checking/ savings( 3 Q 2 0 1 0 )

6790 89

Percent of Funding from Deposits(1Q11)

Percent of Deposits in Checking/ Savings(1Q11)

45

4544

WFC JPM BAC C C WFC JPM BAC

Average cost of deposits( YTD 3Q 201 0)

Bps119

Average Cost of Deposits(1Q11)

Deposits per Branch(As of 6/30/10, $ in millions)

0.30 0.33 0.40

0.84 80 80

66

12

WFC BAC JPM C C BAC WFC JPM



Record 1Q11 earnings

$3.8 billion record 1Q11 quarterly netincome, up 10% linked quarter and48% YoY

Net Income($ in millions)

3,062

3,339 3,414

, . ,quarter and 49% YoY

2,547

1Q10 2Q10 3Q10 4Q10 1Q11

13



Period-end loansDeclines reflect continued reduction in non-strategic/liquidating portfolio

781.4

Period-end Loans($ in billions)

155.0 146.8 139.7 133.2 126.8

. . . 751.2

626.4 619.5 614.0 624.1 624.4

1Q10 2Q10 3Q10 4Q10 1Q11

All other loans Non-strategic portfolio(1)

14

Period-end balances.

(1) The non-strategic/liquidating portfolio includes the Pick-a-Pay, liquidating home equity, legacy WFF indirect auto, legacy WFF debt consolidation, EducationFinance government and Commercial, Commercial Real Estate and other PCI loan portfolios.



DepositsStrong growth and reduced average cost

Average core deposits in 1Q11 up$37.7 billion, or 5%, from 1Q10

Average checking and savings in

Average Core Deposits($ in billions)

794.8 796.8

573.7 573.8 584.1

185.5 221.0 212.7

. , ,

1Q10 Consumer checking accounts up

7.4% from 1Q10

.

1Q10 4Q10 1Q11Retail Core Deposits Other Core Deposits

- 7.9% growth in California

- 8.5% growth in North Carolina

- 12.0% growth in Florida

664.4715.7 722.5

Average Checking and Savings($ in billions)

15

1Q10 4Q10 1Q11



Retail bank cross-sell opportunities

14-16

Retail Bank Household Cross-sell (1)

5.225.79

6.21

7.30

East Combined Wells West Top Region Avg. U.S.

argo nanc a erv ces

Consumer

16

(1) Number of products per household as of 1Q11.



Legacy Wells Fargo cross-sell capability was built over 20 yearsand proven over time

W e continue to grow households The more products our customers have,the more value we can provide

Total package penetration (3)

(combined consumer and business)

Retail Bank household growth (1)(2)(3)

26%

3.1% 2.9% 3.0%

2.5%

3.7%3.5% 3.3%

Legacy WF 2003 West 1Q11

The longer we know our customers, the more we can

Leg WF

2004

Leg WF

2005

Leg WF

2006

Leg WF

2007

Leg WF

2008

Leg WF

2009

Comb'd

WF 2010

5.15.65.5

6.8 7.22004 Legacy WF

1Q11 Comb'd WF

Retail Bank household cross-sell by tenure (1)(2)

satisfy their needs and remain relevant over time

2.9 3.7

4.3

3.8

.

< 1 2 to 3 5 to 6 10 to 20 20+

17

(1) Retail Bank Households for combined company for 2009 and 2010 periods (unless otherwise noted); household growth reflects rolling 12 months.(2) Period-ending results.

(3) Legacy WF includes legacy WF states (not Kansas), East includes WB stand alone states except for Kansas, and the West includes legacy WF states, includingoverlapping states and Kansas.



Retail bank opportunities

Retail Bank householdproduct penetration

Metric

Retail Checking 91% 90%

Debit 85% 77%

Households / Store 3,650 3,450

Household Cross-sell 6.21 5.22

Retail Savings 75% 66%

Credit Card 33% 14%

Insurance 10% 5%

Households / Platform FTE (1) 635 885

Solutions/ Productivity

Mortgage 14% 10%Platform FTE / Store (1) 5.7 3.9

Platform FTE (1) 20,300 10,800

We have opportunity to cross-sell new retail products to our Eastern customer bases

18

As of 1Q11.(1) Effective 1Q11, Platform FTE in the East excludes Regional Banking Private Bankers.



Wholesale Banking opportunities

Cross-Sell Potential

Opportunity to increase revenue in the Eastern U.S. by implementing legacy Wells Fargo model

Investment banking revenue from commercial customers has grown as we leverage our product set,

− 1Q11 investment banking revenue with corporate and commercial customers increased 68% from 1Q10

Investment Banking Capital Markets

U.S. investment bankin market share (1) of 4.7% in 1 11 u from 4.2% in FY2010

International Ca abilities

Investing in and growing our talent base

− Added more than 500 team members since the merger, with strategic hires in key sectors

Deepen cross-sell through our Global Financial Institutions (GFI) business

Build out global banking to U.S. commercial and corporate customers

Leading treasury management franchise with technology competitive advantages

- Customers are already heavy technology users and this continues to increase

19

(1) Source: Dealogic U.S. investment banking fee market share.



Wealth, Brokerage and Retirement opportunities

Cross-Sell Potential – Wells Fargo bank customers

Penetrate 5.2 million affluent Wells Fargo households thathold $1.7 trillion in investment assets with other firms,but no investments with WBR

Bank & Brokerage

Relationship

HH Balancesincrease

6X

Optimizing Financial Advisor Performance –

pene ra on cou genera e over annuarevenue

Bank OnlyRelationship

Bank OnlyRelationship

Success measured by penetration of investment planning(Envision), growth in advisory assets, advice-based balancesheet growth including loans and deposits and increased clientloyalty

82

$235

Advisory AUM($ in billions)

50

51 Estimated Number of U.S. Retir ees

Strong growth in advisory client assets (19% CAGR 2004-2010)

91% of FAs have advisory AUM

86% of FAs have clients in Envision

2004 2010

45

46

47

48

49

M i l l i o n s

Retirement Opportunity

Wells Fargo is uniquely positioned to capitalize on thisopportunity:

- Dedicated unit devoted to meeting client’s retirement

20

42

43

44

2011 2012 2013 2014 2015(1) Household balances include deposits and investments.

needs

- Advice-based focus on planning

% of USpopulation 14.5% 14.8% 15.1% 15.4% 15.6%



Focused on expense discipline

1Q11 Noninterest expense down 5%from 4Q10

1Q11 expenses include:

Noninterest Expense($ in millions)

- $472 million of operating losses,

substantially all related to litigationaccruals for foreclosure-related matters

- $440 million of merger integration costs,

12,11712,746

12,253

13,34012,733

down $94 million from 4Q10

- Seasonally higher incentivecompensation and employee benefit

expenses

Continued to focus on corporate-wideexpense reductions1Q10 2Q10 3Q10 4Q10 1Q11

21



Credit quality Continued decline in provision expense

$3.2 billion 1Q11 net charge-offs,down $629 million from 4Q10 and41% from 4Q09 peak

6.11

Provision Expense($ in billions)

. ,down $779 million from 4Q10

Allowance for credit losses = $22.4billion

0.70

1.00 0.50

(0.50)

3.99

3.45

5.33

.

4.56

5.09

5.11 5.41 5.33

1.30 (0.65)

(0.85)

2.99

2.21

(1.0)

3.26

. .4.10

3.84

3.21

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

Net Charge-offs Credit Reserve Build

Reserve Release

22



Credit quality Credit metrics showed continued improvement

( $ in b i ll ions) 1 Q1 1 4 Q1 0 3 Q1 0 2 Q1 0 1 Q1 0

Commercial

Nonperforming Assets($ in billions)

4.2 5.16.3

6.25.6

Nonperforming Loan Flows

32.434.6

32.931.5 30.6

Inflows 1.9 2.3 2.8 2.5 2.8

Outflows (2.9) (3.6) (2.4) (2.6) (2.2)

Ending balance 10.3 11.3 12.6 12.2 12.3

Consumer

Inflows 4.0 4.3 4.9 4.8 6.1

27.3 27.8 28.3 26.2 25.0

Out ows 4.2 5.1 4.8 4.2 3.8

Ending balance 14.7 14.9 15.7 15.6 15.0

Total $ 25.0 26.2 28.3 27.8 27.3 1Q10 2Q10 3Q10 4Q10 1Q11

Nonperforming loans REO/Foreclosed assets/Other

2.3 3.2

3.9

4.9

$25

$30

–(30+ days past due - balances and rates)

oans an ccru ng($ in billions)

7.34% 7.18%7.54%

7.14% s )

2.6 2.2 2.1 2.0 1.7

.

1.0 0.6 0.7

.

$10

$15

$202.4

6.20%

( $

i n

b i l l i o

23

1Q10 2Q10 3Q10 4Q10 1Q11

Consumer Commercial

1Q10 2Q10 3Q10 4Q10 1Q11

(1) Excludes mortgage loans insured/guaranteed by the FHA or VA and student loans whose repayments are predominantly guaranteed by guarantee agencies onbehalf of the U.S. Department of Education under the Federal Family Education Loan Program. The carrying value of PCI loans contractually 90 days or morepast due was $10.8 billion in 1Q11, $11.6 billion in 4Q10, $13.0 billion in 3Q10, $15.1 billion in 2Q10 and $16.8 billion in 1Q10. Consumer includes mortgageloans held for sale 90 days or more past due and still accruing.



Mortgage servicing

Residential Mortgage Servicing Portfolio$1.8 Trillion

(as of March 31, 2011)

4Q10 Servicing Portfolio DelinquencyPerformance (1 )

(Data as of December 31, 2010)

4.16%12%

14%

16%

Foreclosure Rate

Delinquency Rate11.60%

14.30%

11.25%

6%

7%

10.14%

2.19%2.74%

4.29% 3.63%

6%

8%

10%

8.02%

8.96%

68%

19%

5.83% 6.22%7.31% 7.62%

0%

2%

Wells Fargo Citi JPM Chase Bank of America Industry(2)

Agency

Wells Fargo total delinquency andforeclosure ratio for 1Q11 was 7.22%,down from a peak of 8.96% in 4Q09

e a ne an acqu re por o o

Non-agency securitizations of WFC originated loans

Non-agency acquired servicingand private whole loan sales

24

(1) Inside Mortgage Finance.(2) Industry is all large servicers ($6.7 trillion) including WFC, C, JPM and BAC.



CapitalCapital remained strong and continued to grow internally

8.93%

Tier 1 common +63 bps in 1Q11

Other capital ratios growing

- Tier 1 Capital = 11.5%

Tier 1 Common Equity Ratio

7.09%

7.61%

8.01%8.30% - Tier 1 Leverage = 9.3%

Tier 1 common equity ratio underBasel III is estimated to be 7.2%

1Q10 2Q10 3Q10 4Q10 1Q11

25

See Appendix page 29 and 30 for more information on Tier 1 common equity.



CapitalCapital actions taken

Quarterly common stock cash dividend rate increased to $0.12 per share andpaid fully in 1Q11; 2Q11 dividend of $0.12 per share declared and will be paidon June 1

Common stock repurchase authority increased by an additional 200million shares

$3.2 billion of trust preferred securities called

− Weighted average coupon of 7.49%

−

Redemption funded through internal sources −

26



We remain focused

Growing our customer base and deepening existing relationships

Managing expenses and improving efficiency

Being disciplined with our liquidity and investment strategy

…All while completing the biggest banking merger in U.S. history

27



Appendix

28





Documents

Wells Fargo May 2011