WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - FORM 8-K - WELLS FARGO & COMPANY/MN	wfc-20210115.htm
EX-99.3 - EX-99.3 - WELLS FARGO & COMPANY/MN	wellsfargo4q20presentati.htm
EX-99.1 - EX-99.1 - WELLS FARGO & COMPANY/MN	wfc4qer01-15x21ex991xrelea.htm

Exhibit 99.2

4Q20 Quarterly Supplement

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS



			Pages
Consolidated Results

Summary Financial Data			1


Consolidated Statement of Income			3


Consolidated Balance Sheet			4
Average Balances and Interest Rates (Taxable-Equivalent Basis)			5









Reportable Operating Segment Results
Combined Segment Results			6
Consumer Banking and Lending			8
Commercial Banking			10
Corporate and Investment Banking			12
Wealth and Investment Management			14
Corporate			15

Credit-Related Information
Consolidated Loans Outstanding – Period End			16
Net Loan Charge-offs			17
Changes in Allowance for Credit Losses for Loans			18
Allocation of the Allowance for Credit Losses for Loans			19
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)			20


Commercial and Industrial Loans and Lease Financing by Industry			21
Commercial Real Estate Loans by Property Type			22

Equity
Tangible Common Equity			23
Risk-Based Capital Ratios Under Basel III – Standardized Approach			25
Risk-Based Capital Ratios Under Basel III – Advanced Approach			26




Other
Deferred Compensation and Related Hedges			27

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2020, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA


	Quarter ended							Dec 31, 2020 % 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 expense	14,802			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	NM		NM	14,129			2,687	426
Wells Fargo net income (loss)	2,992			2,035	(2,379)	653	2,873	47		4	3,301			19,549	(83)
Wells Fargo net income (loss) applicable to common stock	2,642			1,720	(2,694)	42	2,546	54		4	1,710			17,938	(90)

Common Share Data
Diluted earnings (loss) per common share	0.64			0.42	(0.66)	0.01	0.60	52		7	0.41			4.05	(90)
Dividends declared per common share	0.10			0.10	0.51	0.51	0.51	—		(80)	1.22			1.92	(36)
Common shares outstanding	4,144.0			4,132.5	4,119.6	4,096.4	4,134.4	—		—








Average common shares outstanding	4,137.6			4,123.8	4,105.5	4,104.8	4,197.1	—		(1)	4,118.0			4,393.1	(6)
Diluted average common shares outstanding (2)	4,151.3			4,132.2	4,105.5	4,135.3	4,234.6	—		(2)	4,134.2			4,425.4	(7)
Book value per common share (3)	$	39.76		38.99	38.67	39.71	40.31	2		(1)
Tangible book value per common share (3)(4)	33.04			32.23	31.88	32.90	33.50	3		(1)





Selected Equity Data (period-end)
Total equity	185,920			182,032	180,122	183,330	187,984	2		(1)
Common stockholders' equity	164,778			161,109	159,322	162,654	166,669	2		(1)
Tangible common equity (4)	136,935			133,179	131,329	134,787	138,506	3		(1)

Performance Ratios
Return on average assets (ROA)(5)	0.62		%	0.42	(0.49)	0.13	0.59				0.17		%	1.02
Return on average equity (ROE)(6)	6.4			4.2	(6.6)	0.1	5.9				1.0			10.2
Return on average tangible common equity (ROTCE)(4)	7.7			5.1	(8.0)	0.1	7.1				1.3			12.2
Efficiency ratio (7)	83			81	82	74	79				80			68
Net interest margin on a taxable-equivalent basis	2.13			2.13	2.25	2.58	2.53				2.27			2.73

NM – Not meaningful

(1)Pre-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 ended							Dec 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)	%
Assets	1,926,872			1,947,672	1,948,939	1,950,659	1,941,843	(1)		(1)	1,943,501		1,913,444	2
Deposits	1,380,100			1,399,028	1,386,656	1,337,963	1,321,913	(1)		4	1,376,011		1,286,261	7

Selected Balance Sheet Data (period-end)
Debt securities	501,207			476,421	472,580	501,563	497,125	5		1
Loans	887,637			920,082	935,155	1,009,843	962,265	(4)		(8)
Allowance for loan losses	18,516			19,463	18,926	11,263	9,551	(5)		94
Equity securities	62,260			51,169	52,494	54,047	68,241	22		(9)
Assets	1,955,163			1,922,220	1,968,766	1,981,349	1,927,555	2		1
Deposits	1,404,381			1,383,215	1,410,711	1,376,532	1,322,626	2		6

Headcount (#)	268,531			274,931	276,013	272,267	271,924	(2)		(1)

Capital and other metrics (1)
Risk-based capital ratios and components (2):
Standardized Approach:
CET1	11.6		%	11.4	11.0	10.7	11.1
Tier 1 capital	13.3			13.1	12.6	12.2	12.8
Total capital	16.5			16.3	15.9	15.2	15.8
Risk-weighted assets (RWAs) (in billions)	$	1,192.0		1,185.6	1,213.1	1,262.8	1,245.9	1		(4)

Advanced Approach:
CET1	11.9		%	11.5	11.1	11.4	11.9
Tier 1 capital	13.7			13.2	12.8	13.1	13.6
Total capital	16.1			15.7	15.3	15.6	16.2
Risk-weighted assets (RWAs) (in billions) (3)	$	1,158.1		1,172.0	1,195.4	1,181.3	1,165.1	(1)		(1)

Tier 1 leverage ratio	8.3		%	8.1	8.0	8.0	8.3
Liquidity Coverage Ratio (LCR)	133			134	129	121	120
Supplementary Leverage Ratio (SLR)	8.1			7.8	7.5	6.8	7.1
Total Loss Absorbing Capacity (TLAC)	25.8			25.8	25.3	23.3	23.3

(1)Ratios and metrics for December 31, 2020, are preliminary estimates.

(2)See tables on pages 25 and 26 for more information on Common Equity Tier 1 (CET1), tier 1 capital, and total capital. Beginning January 1, 2018, the requirements for calculating CET1 and tier 1 capital, along with RWAs became fully phased-in. Accordingly, the information presented reflects fully phased-in CET1, tier 1 capital, and RWAs, but reflects total capital still in accordance with Transition Requirements.

(3)Amount for December 31, 2019, has been revised as a result of a decrease in RWAs under the Advanced Approach due to the correction of duplicated operational loss amounts.

-2-

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME


	Quarter ended						Dec 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 expense	1,195		1,432	1,921	3,415	4,395	(17)		(73)	7,963		18,852	(58)
Net interest income	9,275		9,368	9,880	11,312	11,200	(1)		(17)	39,835		47,231	(16)
Noninterest income
Deposit-related fees	1,333		1,299	1,142	1,447	1,530	3		(13)	5,221		5,819	(10)
Lending-related fees	356		352	323	350	358	1		(1)	1,381		1,474	(6)
Brokerage fees	2,440		2,336	2,117	2,482	2,380	4		3	9,375		9,237	1
Trust and investment management fees	747		737	687	701	728	1		3	2,872		3,038	(5)
Investment banking fees	486		441	547	391	464	10		5	1,865		1,797	4
Card fees	943		912	797	892	1,020	3		(8)	3,544		4,016	(12)
Mortgage banking	1,207		1,590	317	379	783	(24)		54	3,493		2,715	29
Net gains (losses) from trading activities	(60)		361	807	64	131	NM		NM	1,172		993	18
Net gains (losses) on debt securities	160		264	212	237	(8)	(39)		NM	873		140	524
Net gains (losses) from equity securities	884		649	533	(1,401)	451	36		96	665		2,843	(77)
Lease income	224		333	335	353	344	(33)		(35)	1,245		1,614	(23)
Other	(70)		220	139	510	479	NM		NM	799		4,146	(81)
Total noninterest income	8,650		9,494	7,956	6,405	8,660	(9)		—	32,505		37,832	(14)
Total revenue	17,925		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		NM	14,129		2,687	426
Noninterest expense
Personnel	8,948		8,624	8,916	8,323	8,819	4		1	34,811		35,128	(1)
Technology, telecommunications and equipment	838		791	672	798	936	6		(10)	3,099		3,276	(5)
Occupancy	826		851	871	715	749	(3)		10	3,263		2,945	11
Operating losses	621		1,219	1,219	464	1,916	(49)		(68)	3,523		4,321	(18)
Professional and outside services	1,664		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 promotion	138		144	137	181	244	(4)		(43)	600		1,076	(44)
Restructuring charges	781		718	—	—	—	9		NM	1,499		—	NM
Other	759		831	816	701	875	(9)		(13)	3,107		3,532	(12)
Total noninterest expense	14,802		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 interests	3,194		2,219	(2,332)	505	2,924	44		9	3,586		20,041	(82)
Less: Net income (loss) from noncontrolling interests	202		184	47	(148)	51	10		296	285		492	(42)
Wells Fargo net income (loss)	$	2,992	2,035	(2,379)	653	2,873	47		4	$	3,301	19,549	(83)
Less: Preferred stock dividends and other	350		315	315	611	327	11		7	1,591		1,611	(1)
Wells Fargo net income (loss) applicable to common stock	$	2,642	1,720	(2,694)	42	2,546	54		4	$	1,710	17,938	(90)
Per share information
Earnings (loss) per common share	$	0.64	0.42	(0.66)	0.01	0.61	52		5	$	0.42	4.08	(90)
Diluted earnings (loss) per common share	0.64		0.42	(0.66)	0.01	0.60	52		7	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 banks	236,376		221,235	237,799	128,071	119,493	7		98
Total cash, cash equivalents, and restricted cash	264,612		246,770	262,503	150,809	141,250	7		87
Federal funds sold and securities purchased under resale agreements	65,672		69,304	79,289	86,465	102,140	(5)		(36)
Debt securities:
Trading, at fair value	75,095		73,253	74,679	80,425	79,733	3		(6)
Available-for-sale, at fair value	220,392		220,573	228,899	251,229	263,459	—		(16)
Held-to-maturity, at amortized cost	205,720		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
Loans	887,637		920,082	935,155	1,009,843	962,265	(4)		(8)
Allowance for loan losses	(18,516)		(19,463)	(18,926)	(11,263)	(9,551)	(5)		94
Net loans	869,121		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, net	8,895		8,977	9,025	9,108	9,309	(1)		(4)
Goodwill	26,392		26,387	26,385	26,381	26,390	—		—
Derivative assets	25,846		23,715	22,776	25,023	14,203	9		82
Equity securities	62,260		51,169	52,494	54,047	68,241	22		(9)
Other assets	87,337		86,174	85,611	96,163	78,917	1		11
Total assets	$	1,955,163	1,922,220	1,968,766	1,981,349	1,927,555	2		1
Liabilities
Noninterest-bearing deposits	$	467,068	447,011	432,857	379,678	344,496	4		36
Interest-bearing deposits	937,313		936,204	977,854	996,854	978,130	—		(4)
Total deposits	1,404,381		1,383,215	1,410,711	1,376,532	1,322,626	2		6
Short-term borrowings	58,999		55,224	60,485	92,289	104,512	7		(44)
Derivative liabilities	16,509		13,767	11,368	15,618	9,079	20		82
Accrued expenses and other liabilities	76,404		72,271	75,159	76,238	75,163	6		2
Long-term debt	212,950		215,711	230,921	237,342	228,191	(1)		(7)
Total liabilities	1,769,243		1,740,188	1,788,644	1,798,019	1,739,571	2		2
Equity
Wells Fargo stockholders’ equity:
Preferred stock	21,136		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 capital	60,197		60,035	59,923	59,849	61,049	—		(1)
Retained earnings	162,890		160,913	159,952	165,308	166,697	1		(2)
Cumulative other comprehensive income (loss)	194		(750)	(798)	(1,564)	(1,311)	NM		NM
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’ equity	184,887		181,173	179,386	182,718	187,146	2		(1)
Noncontrolling interests	1,033		859	736	612	838	20		23
Total equity	185,920		182,032	180,122	183,330	187,984	2		(1)
Total liabilities and equity	$	1,955,163	1,922,220	1,968,766	1,981,349	1,927,555	2		1

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 ended					Dec 31, 2020 % Change from		Year ended		% Change
($ in millions)	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
Average Balances

Assets
Interest-earning deposits with banks	$	222,010		216,958	176,327		129,522		127,287		2	%		74		$	186,386			135,741		37	%
Federal funds sold and securities purchased under resale agreements	67,023			80,431	76,384		107,555		109,201		(17)			(39)		82,798				99,286		(17)
Debt securities	500,616			481,961	495,297		511,512		518,496		4			(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 loans	476,468			497,744	545,318		520,514		512,590		(4)			(7)		509,886				511,460		—
Consumer loans	423,236			433,964	425,948		444,532		443,946		(2)			(5)		431,902				439,496		(2)
Total loans	899,704			931,708	971,266		965,046		956,536		(3)			(6)		941,788				950,956		(1)
Equity securities	25,744			25,185	27,417		37,532		38,278		2			(33)		28,950				35,930		(19)
Other	7,896			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		1
Total noninterest-earning assets	174,443			173,432	166,923		170,215		160,217		1			9		171,268				158,982		8
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		2
Liabilities
Interest-bearing deposits	$	925,729		959,270	978,194		990,636		970,175		(3)			(5)		$	963,342			942,150		2
Short-term borrowings	57,304			57,292	63,535		102,977		115,949		—			(51)		70,206				115,337		(39)
Long-term debt	214,223			222,862	232,395		229,002		230,430		(4)			(7)		224,587				232,491		(3)
Other liabilities	25,949			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 deposits	454,371			439,758	408,462		347,327		351,738		3			29		412,669				344,111		20
Other noninterest-bearing liabilities	63,548			57,961	52,298		62,348		53,879		10			18		59,048				55,963		6
Total liabilities	$	1,741,124		1,764,822	1,764,831		1,762,489		1,749,450		(1)			—		$	1,758,287			1,715,823		2
Total equity	185,748			182,850	184,108		188,170		192,393		2			(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		2

Average Interest Rates

Interest-earning assets
Interest-earning deposits with banks	0.10		%	0.11	0.12		1.18		1.63							0.29		%		2.12
Federal funds sold and securities purchased under resale agreements	0.05			0.02	0.01		1.42		1.72							0.47				2.18
Debt securities	1.96			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 loans	2.67			2.60	2.76		3.65		3.90							2.93				4.27
Consumer loans	4.20			4.33	4.45		4.83		4.92							4.46				5.11
Total loans	3.39			3.41	3.50		4.20		4.37							3.63				4.65
Equity securities	2.04			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 assets	2.41			2.45	2.68		3.35		3.51							2.72				3.80
Interest-bearing liabilities
Interest-bearing deposits	0.07			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 debt	1.78			1.86	2.13		2.17		3.02							1.99				3.16
Other liabilities	1.38			1.33	1.53		1.90		2.04							1.54				2.13
Total interest-bearing liabilities	0.39			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 Lending		Commercial Banking	Corporate and Investment Banking	Wealth and Investment Management	Corporate (2)	Reconciling Items (3)	Consolidated Company
Net interest income	$	5,741	1,390	1,809	715	(273)	(107)	9,275
Noninterest income	2,872		998	1,297	3,074	1,248	(839)	8,650
Total revenue	8,613		2,388	3,106	3,789	975	(946)	17,925
Provision for credit losses	351		69	186	(4)	(781)	—	(179)
Noninterest expense	6,441		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 interests	1,364		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 income	3,228		923	1,575	2,915	1,477	(624)	9,494
Total revenue	9,146		2,360	3,287	3,633	1,169	(733)	18,862
Provision for credit losses	640		339	(121)	(10)	(79)	—	769
Noninterest expense	7,345		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 interests	871		196	1,062	477	(387)	—	2,219
Less: Net income from noncontrolling interests	—		1	—	3	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 income	2,849		1,018	1,330	3,075	1,024	(636)	8,660
Total revenue	9,082		2,895	3,329	3,960	1,373	(779)	19,860
Provision for credit losses	485		30	77	(1)	53	—	644
Noninterest expense	7,421		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 interests	632		793	1,073	216	210	—	2,924
Less: Net income from noncontrolling interests	—		1	—	3	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 Lending		Commercial Banking	Corporate and Investment Banking	Wealth and Investment Management	Corporate (2)	Reconciling Items (3)	Consolidated Company
Net interest income	$	23,378	6,191	7,501	2,993	247	(475)	39,835
Noninterest income	10,638		3,547	6,319	11,519	3,216	(2,734)	32,505
Total revenue	34,016		9,738	13,820	14,512	3,463	(3,209)	72,340
Provision for credit losses	5,662		3,744	4,946	249	(472)	—	14,129
Noninterest expense	26,976		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

WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.2 - January 15, 2021

Attached files