Attached files

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8-K - FORM 8-K - WELLS FARGO & COMPANY/MNwfc-20210115.htm
EX-99.3 - EX-99.3 - WELLS FARGO & COMPANY/MNwellsfargo4q20presentati.htm
EX-99.1 - EX-99.1 - WELLS FARGO & COMPANY/MNwfc4qer01-15x21ex991xrelea.htm
Exhibit 99.2
erwellsfargoimagea061b.jpg










4Q20 Quarterly Supplement



Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
 
Pages
Consolidated Results
Average Balances and Interest Rates (Taxable-Equivalent Basis)
Reportable Operating Segment Results
Consumer Banking and Lending
Commercial Banking
Corporate and Investment Banking
Wealth and Investment Management
Corporate
Credit-Related Information
Consolidated Loans Outstanding – Period End
Net Loan Charge-offs
Changes in Allowance for Credit Losses for Loans
Allocation of the Allowance for Credit Losses for Loans
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
Commercial and Industrial Loans and Lease Financing by Industry21
Commercial Real Estate Loans by Property Type
Equity
Tangible Common Equity
Risk-Based Capital Ratios Under Basel III – Standardized Approach
Risk-Based Capital Ratios Under Basel III – Advanced Approach
Other
Deferred Compensation and Related Hedges

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 endedDec 31, 2020
% Change from
Year ended
(in millions, except per share amounts)Dec 31,
2020
Sep 30,
2020
Jun 30,
2020
Mar 31,
2020
Dec 31,
2019
Sep 30,
2020
Dec 31,
2019
Dec 31,
2020
Dec 31,
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 expense14,802 15,229 14,551 13,048 15,614 (3)(5)57,630 58,178 (1)
Pre-tax pre-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 NMNM 14,129 2,687 426 
Wells Fargo net income (loss)2,992 2,035 (2,379)653 2,873 47 3,301 19,549 (83)
Wells Fargo net income (loss) applicable to common stock2,642 1,720 (2,694)42 2,546 54 1,710 17,938 (90)
Common Share Data
Diluted earnings (loss) per common share0.64 0.42 (0.66)0.01 0.60 52 0.41 4.05 (90)
Dividends declared per common share0.10 0.10 0.51 0.51 0.51 — (80)1.22 1.92 (36)
Common shares outstanding4,144.0 4,132.5 4,119.6 4,096.4 4,134.4 — — 
Average common shares outstanding4,137.6 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 (1)
Tangible book value per common share (3)(4)33.04 32.23 31.88 32.90 33.50 (1)
Selected Equity Data (period-end)
Total equity185,920 182,032 180,122 183,330 187,984 (1)
Common stockholders' equity164,778 161,109 159,322 162,654 166,669 (1)
Tangible common equity (4)136,935 133,179 131,329 134,787 138,506 (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 basis2.13 2.13 2.25 2.58 2.53 2.27 2.73 
NM – Not meaningful
(1)Pre-tax pre-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).




-1-


Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA (continued)
Quarter endedDec 31, 2020
% Change from
Year ended
($ in millions, unless otherwise noted)Dec 31,
2020
Sep 30,
2020
Jun 30,
2020
Mar 31,
2020
Dec 31,
2019
Sep 30,
2020
Dec 31,
2019
Dec 31,
2020
Dec 31,
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)%
Assets1,926,872 1,947,672 1,948,939 1,950,659 1,941,843 (1)(1)1,943,501 1,913,444 
Deposits1,380,100 1,399,028 1,386,656 1,337,963 1,321,913 (1)1,376,011 1,286,261 
Selected Balance Sheet Data (period-end)
Debt securities501,207 476,421 472,580 501,563 497,125 
Loans887,637 920,082 935,155 1,009,843 962,265 (4)(8)
Allowance for loan losses18,516 19,463 18,926 11,263 9,551 (5)94 
Equity securities62,260 51,169 52,494 54,047 68,241 22 (9)
Assets1,955,163 1,922,220 1,968,766 1,981,349 1,927,555 
Deposits1,404,381 1,383,215 1,410,711 1,376,532 1,322,626 
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:
CET111.6 %11.4 11.0 10.7 11.1 
Tier 1 capital13.3 13.1 12.6 12.2 12.8 
Total capital16.5 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 (4)
Advanced Approach:
CET111.9 %11.5 11.1 11.4 11.9 
Tier 1 capital13.7 13.2 12.8 13.1 13.6 
Total capital16.1 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 ratio8.3 %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.
-2-


Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
Quarter endedDec 31, 2020
% Change from
Year ended
(in millions, except per share amounts)Dec 31,
2020
Sep 30,
2020
Jun 30,
2020
Mar 31,
2020
Dec 31,
2019
Sep 30,
2020
Dec 31,
2019
Dec 31,
2020
Dec 31,
2019
%
Change
Interest income$10,470 10,800 11,801 14,727 15,595 (3)%(33)$47,798 66,083 (28)%
Interest expense1,195 1,432 1,921 3,415 4,395 (17)(73)7,963 18,852 (58)
Net interest income9,275 9,368 9,880 11,312 11,200 (1)(17)39,835 47,231 (16)
Noninterest income
Deposit-related fees1,333 1,299 1,142 1,447 1,530 (13)5,221 5,819 (10)
Lending-related fees356 352 323 350 358 (1)1,381 1,474 (6)
Brokerage fees2,440 2,336 2,117 2,482 2,380 9,375 9,237 
Trust and investment management fees747 737 687 701 728 2,872 3,038 (5)
Investment banking fees486 441 547 391 464 10 1,865 1,797 
Card fees943 912 797 892 1,020 (8)3,544 4,016 (12)
Mortgage banking1,207 1,590 317 379 783 (24)54 3,493 2,715 29 
Net gains (losses) from trading activities(60)361 807 64 131 NM NM1,172 993 18 
Net gains (losses) on debt securities160 264 212 237 (8)(39)NM873 140 524 
Net gains (losses) from equity securities884 649 533 (1,401)451 36 96 665 2,843 (77)
Lease income224 333 335 353 344 (33)(35)1,245 1,614 (23)
Other(70)220 139 510 479 NM NM799 4,146 (81)
Total noninterest income8,650 9,494 7,956 6,405 8,660 (9)— 32,505 37,832 (14)
Total revenue17,925 18,862 17,836 17,717 19,860 (5)(10)72,340 85,063 (15)
Provision for credit losses(179)769 9,534 4,005 644 NM NM14,129 2,687 426 
Noninterest expense
Personnel8,948 8,624 8,916 8,323 8,819 34,811 35,128 (1)
Technology, telecommunications and equipment838 791 672 798 936 (10)3,099 3,276 (5)
Occupancy826 851 871 715 749 (3)10 3,263 2,945 11 
Operating losses621 1,219 1,219 464 1,916 (49)(68)3,523 4,321 (18)
Professional and outside services1,664 1,760 1,676 1,606 1,789 (5)(7)6,706 6,745 (1)
Leases (1)227 291 244 260 286 (22)(21)1,022 1,155 (12)
Advertising and promotion138 144 137 181 244 (4)(43)600 1,076 (44)
Restructuring charges781 718 — — — NM1,499 — NM
Other759 831 816 701 875 (9)(13)3,107 3,532 (12)
Total noninterest expense14,802 15,229 14,551 13,048 15,614 (3)(5)57,630 58,178 (1)
Income (loss) before income tax expense (benefit)3,302 2,864 (6,249)664 3,602 15 (8)581 24,198 (98)
Income tax expense (benefit)108 645 (3,917)159 678 (83)(84)(3,005)4,157 NM
Net income (loss) before noncontrolling interests3,194 2,219 (2,332)505 2,924 44 3,586 20,041 (82)
Less: Net income (loss) from noncontrolling interests202 184 47 (148)51 10 296 285 492 (42)
Wells Fargo net income (loss)$2,992 2,035 (2,379)653 2,873 47 $3,301 19,549 (83)
Less: Preferred stock dividends and other350 315 315 611 327 11 1,591 1,611 (1)
Wells Fargo net income (loss) applicable to common stock$2,642 1,720 (2,694)42 2,546 54 $1,710 17,938 (90)
Per share information
Earnings (loss) per common share$0.64 0.42 (0.66)0.01 0.61 52 $0.42 4.08 (90)
Diluted earnings (loss) per common share0.64 0.42 (0.66)0.01 0.60 52 0.41 4.05 (90)
NM – Not meaningful
(1)Represents expenses for assets we lease to customers.
-3-


Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
Dec 31, 2020
% Change from
(in millions)Dec 31,
2020
Sep 30,
2020
Jun 30,
2020
Mar 31,
2020
Dec 31,
2019
Sep 30,
2020
Dec 31,
2019
Assets
Cash and due from banks$28,236 25,535 24,704 22,738 21,757 11 %30 
Interest-earning deposits with banks236,376 221,235 237,799 128,071 119,493 98 
Total cash, cash equivalents, and restricted cash264,612 246,770 262,503 150,809 141,250 87 
Federal funds sold and securities purchased under resale agreements65,672 69,304 79,289 86,465 102,140 (5)(36)
Debt securities:
Trading, at fair value75,095 73,253 74,679 80,425 79,733 (6)
Available-for-sale, at fair value220,392 220,573 228,899 251,229 263,459 — (16)
Held-to-maturity, at amortized cost205,720 182,595 169,002 169,909 153,933 13 34 
Loans held for sale (1)36,384 25,004 33,694 23,678 24,319 46 50 
Loans887,637 920,082 935,155 1,009,843 962,265 (4)(8)
Allowance for loan losses(18,516)(19,463)(18,926)(11,263)(9,551)(5)94 
Net loans869,121 900,619 916,229 998,580 952,714 (3)(9)
Mortgage servicing rights (1)7,437 7,680 8,180 9,532 12,947 (3)(43)
Premises and equipment, net8,895 8,977 9,025 9,108 9,309 (1)(4)
Goodwill26,392 26,387 26,385 26,381 26,390 — — 
Derivative assets 25,846 23,715 22,776 25,023 14,203 82 
Equity securities62,260 51,169 52,494 54,047 68,241 22 (9)
Other assets87,337 86,174 85,611 96,163 78,917 11 
Total assets$1,955,163 1,922,220 1,968,766 1,981,349 1,927,555 
Liabilities
Noninterest-bearing deposits$467,068 447,011 432,857 379,678 344,496 36 
Interest-bearing deposits937,313 936,204 977,854 996,854 978,130 — (4)
Total deposits1,404,381 1,383,215 1,410,711 1,376,532 1,322,626 
Short-term borrowings58,999 55,224 60,485 92,289 104,512 (44)
Derivative liabilities 16,509 13,767 11,368 15,618 9,079 20 82 
Accrued expenses and other liabilities76,404 72,271 75,159 76,238 75,163 
Long-term debt212,950 215,711 230,921 237,342 228,191 (1)(7)
Total liabilities1,769,243 1,740,188 1,788,644 1,798,019 1,739,571 
Equity
Wells Fargo stockholders’ equity:
Preferred stock21,136 21,098 21,098 21,347 21,549 — (2)
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares 9,136 9,136 9,136 9,136 9,136 — — 
Additional paid-in capital60,197 60,035 59,923 59,849 61,049 — (1)
Retained earnings162,890 160,913 159,952 165,308 166,697 (2)
Cumulative other comprehensive income (loss)194 (750)(798)(1,564)(1,311)NMNM
Treasury stock (2)(67,791)(68,384)(69,050)(70,215)(68,831)(1)(2)
Unearned ESOP shares(875)(875)(875)(1,143)(1,143)— (23)
Total Wells Fargo stockholders’ equity184,887 181,173 179,386 182,718 187,146 (1)
Noncontrolling interests1,033 859 736 612 838 20 23 
Total equity185,920 182,032 180,122 183,330 187,984 (1)
Total liabilities and equity$1,955,163 1,922,220 1,968,766 1,981,349 1,927,555 
NM – Not meaningful
(1)In fourth quarter 2020, loans held for sale and mortgage loans held for sale were combined into a single line item, and mortgage servicing rights measured at fair value and at amortized cost were combined into a single line item. Prior period balances have been revised to conform with the current period presentation.
(2)Number of shares of treasury stock were 1,337,799,931, 1,349,294,592, 1,362,252,882, 1,385,401,170, and 1,347,385,537 at December 31, September 30, June 30 and March 31, 2020, and December 31, 2019, respectively.
-4-


Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES AND INTEREST RATES (TAXABLE-EQUIVALENT BASIS)(1)
Quarter endedDec 31, 2020
% Change from
Year ended%
Change
 ($ in millions)Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2020Dec 31, 2019Dec 31, 2020Dec 31, 2019
Average Balances
Assets
Interest-earning deposits with banks$222,010 216,958 176,327 129,522 127,287 %74 $186,386 135,741 37 %
Federal funds sold and securities purchased under resale agreements67,023 80,431 76,384 107,555 109,201 (17)(39)82,798 99,286 (17)
Debt securities500,616 481,961 495,297 511,512 518,496 (3)497,313 505,454 (2)
Loans held for sale (2)29,436 31,023 27,610 21,846 25,350 (5)16 27,493 21,516 28 
Loans:
Commercial loans476,468 497,744 545,318 520,514 512,590 (4)(7)509,886 511,460 — 
Consumer loans423,236 433,964 425,948 444,532 443,946 (2)(5)431,902 439,496 (2)
Total loans899,704 931,708 971,266 965,046 956,536 (3)(6)941,788 950,956 (1)
Equity securities25,744 25,185 27,417 37,532 38,278 (33)28,950 35,930 (19)
Other7,896 6,974 7,715 7,431 6,478 13 22 7,505 5,579 35 
Total interest-earning assets$1,752,429 1,774,240 1,782,016 1,780,444 1,781,626 (1)(2)$1,772,233 1,754,462 
Total noninterest-earning assets174,443 173,432 166,923 170,215 160,217 171,268 158,982 
Total assets$1,926,872 1,947,672 1,948,939 1,950,659 1,941,843 (1)(1)$1,943,501 1,913,444 
Liabilities
Interest-bearing deposits$925,729 959,270 978,194 990,636 970,175 (3)(5)$963,342 942,150 
Short-term borrowings57,304 57,292 63,535 102,977 115,949 — (51)70,206 115,337 (39)
Long-term debt214,223 222,862 232,395 229,002 230,430 (4)(7)224,587 232,491 (3)
Other liabilities25,949 27,679 29,947 30,199 27,279 (6)(5)28,435 25,771 10 
Total interest-bearing liabilities$1,223,205 1,267,103 1,304,071 1,352,814 1,343,833 (3)(9)$1,286,570 1,315,749 (2)
Noninterest-bearing demand deposits454,371 439,758 408,462 347,327 351,738 29 412,669 344,111 20 
Other noninterest-bearing liabilities63,548 57,961 52,298 62,348 53,879 10 18 59,048 55,963 
Total liabilities$1,741,124 1,764,822 1,764,831 1,762,489 1,749,450 (1)— $1,758,287 1,715,823 
Total equity185,748 182,850 184,108 188,170 192,393 (3)185,214 197,621 (6)
   Total liabilities and equity$1,926,872 1,947,672 1,948,939 1,950,659 1,941,843 (1)(1)$1,943,501 1,913,444 
Average Interest Rates
Interest-earning assets
Interest-earning deposits with banks0.10 %0.11 0.12 1.18 1.63 0.29 %2.12 
Federal funds sold and securities purchased under resale agreements0.05 0.02 0.01 1.42 1.72 0.47 2.18 
Debt securities1.96 2.10 2.46 2.81 2.84 2.34 3.06 
Loans held for sale (2)3.56 3.07 3.45 3.82 3.91 3.45 4.14 
Loans:
Commercial loans2.67 2.60 2.76 3.65 3.90 2.93 4.27 
Consumer loans4.20 4.33 4.45 4.83 4.92 4.46 5.11 
Total loans3.39 3.41 3.50 4.20 4.37 3.63 4.65 
Equity securities2.04 1.61 1.70 2.22 2.81 1.92 2.69 
Other (0.02)(0.02)0.77 1.36 0.18 1.62 
Total interest-earning assets2.41 2.45 2.68 3.35 3.51 2.72 3.80 
Interest-bearing liabilities
Interest-bearing deposits0.07 0.13 0.24 0.71 0.85 0.29 0.92 
Short-term borrowings(0.08)(0.08)(0.10)1.14 1.50 0.36 2.01 
Long-term debt1.78 1.86 2.13 2.17 3.02 1.99 3.16 
Other liabilities1.38 1.33 1.53 1.90 2.04 1.54 2.13 
Total interest-bearing liabilities0.39 0.45 0.59 1.01 1.30 0.62 1.43 
Interest rate spread on a taxable-equivalent basis (3)2.02 2.00 2.09 2.34 2.21 2.10 2.37 
Net interest margin on a taxable-equivalent basis (3)2.13 2.13 2.25 2.58 2.53 2.27 2.73 
(1)The average balance amounts represent amortized costs. The interest rates are based on interest income or expense amounts for the period and are annualized, if applicable. Interest rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(2)In fourth quarter 2020, loans held for sale and mortgage loans held for sale were combined into a single line item. Prior period balances have been revised to conform with the current period presentation.
(3)Includes taxable-equivalent adjustments of $107 million, $109 million, $119 million, $140 million, and $143 million for the quarters ended December 31, September 30, June 30 and March 31, 2020, and December 31, 2019, respectively, and $475 million and $611 million for the years ended December 31, 2020 and 2019, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 21% for the periods presented.
-5-


Wells Fargo & Company and Subsidiaries
COMBINED SEGMENT RESULTS (1)
Quarter ended December 31, 2020
(in millions)Consumer Banking and LendingCommercial BankingCorporate and Investment BankingWealth and Investment ManagementCorporate (2)Reconciling Items (3)Consolidated
Company
Net interest income$5,741 1,390 1,809 715 (273)(107)9,275 
Noninterest income2,872 998 1,297 3,074 1,248 (839)8,650 
Total revenue8,613 2,388 3,106 3,789 975 (946)17,925 
Provision for credit losses351 69 186 (4)(781) (179)
Noninterest expense6,441 1,690 1,798 3,056 1,817  14,802 
Income (loss) before income tax expense (benefit)1,821 629 1,122 737 (61)(946)3,302 
Income tax expense (benefit)457 154 282 183 (22)(946)108 
Net income (loss) before noncontrolling interests1,364 475 840 554 (39) 3,194 
Less: Net income (loss) from noncontrolling interests 2 (1)6 195  202 
Net income (loss)$1,364 473 841 548 (234) 2,992 
Quarter ended September 30, 2020
Net interest income$5,918 1,437 1,712 718 (308)(109)9,368 
Noninterest income3,228 923 1,575 2,915 1,477 (624)9,494 
Total revenue9,146 2,360 3,287 3,633 1,169 (733)18,862 
Provision for credit losses640 339 (121)(10)(79)— 769 
Noninterest expense7,345 1,762 1,991 3,009 1,122 — 15,229 
Income (loss) before income tax expense (benefit)1,161 259 1,417 634 126 (733)2,864 
Income tax expense (benefit)290 63 355 157 513 (733)645 
Net income (loss) before noncontrolling interests871 196 1,062 477 (387)— 2,219 
Less: Net income from noncontrolling interests— — 180 — 184 
Net income (loss)$871 195 1,062 474 (567)— 2,035 
Quarter ended December 31, 2019
Net interest income$6,233 1,877 1,999 885 349 (143)11,200 
Noninterest income2,849 1,018 1,330 3,075 1,024 (636)8,660 
Total revenue9,082 2,895 3,329 3,960 1,373 (779)19,860 
Provision for credit losses485 30 77 (1)53 — 644 
Noninterest expense7,421 1,812 1,821 3,673 887 — 15,614 
Income (loss) before income tax expense (benefit)1,176 1,053 1,431 288 433 (779)3,602 
Income tax expense (benefit)544 260 358 72 223 (779)678 
Net income before noncontrolling interests632 793 1,073 216 210 — 2,924 
Less: Net income from noncontrolling interests— — 47 — 51 
Net income$632 792 1,073 213 163 — 2,873 
(1)The management reporting process is based on U.S. GAAP with specific adjustments, such as for funds transfer pricing for asset/liability management, for shared revenues and expenses, and tax-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources. We define our operating segments by product type and customer segment.
(2)All other business activities that are not included in the reportable operating segments have been included in Corporate. Corporate includes corporate treasury and staff functions, net of allocations (including funds transfer pricing, capital, liquidity and certain expenses), in support of the reportable operating segments, as well as our investment portfolio and affiliated venture capital and private equity partnerships. Corporate also includes certain lines of business that management has determined are no longer consistent with the long-term strategic goals of the Company. In addition, Corporate includes results for previously divested businesses.
(3)Taxable-equivalent adjustments related to tax-exempt income on certain loans and debt securities are included in net interest income, while taxable-equivalent adjustments related to income tax credits for low-income housing and renewable energy investments are included in noninterest income, in each case with corresponding impacts to income tax expense (benefit). Adjustments are included in Corporate, Commercial Banking, and Corporate and Investment Banking and are eliminated to reconcile to the Company’s consolidated financial results.
-6-


Wells Fargo & Company and Subsidiaries
COMBINED SEGMENT RESULTS (continued) (1)
Year ended December 31, 2020
(in millions)Consumer Banking and LendingCommercial BankingCorporate and Investment BankingWealth and Investment ManagementCorporate (2)Reconciling Items (3)Consolidated
Company
Net interest income$23,378 6,191 7,501 2,993 247 (475)39,835 
Noninterest income10,638 3,547 6,319 11,519 3,216 (2,734)32,505 
Total revenue34,016 9,738 13,820 14,512 3,463 (3,209)72,340 
Provision for credit losses5,662 3,744 4,946 249 (472) 14,129 
Noninterest expense26,976 6,908 7,703 12,051 3,992  57,630 
Income (loss) before income tax expense (benefit)
1,378 (914)1,171 2,212 (57)(3,209)581 
Income tax expense (benefit)302 (238)330 552