10-KPeriod: FY2016

WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2016

Filed March 1, 2017For Securities:WFCWFC-PDWFC-PCWFC-PYWFC-PAWFC-PLWFCNPWFC-PZ

Summary

Wells Fargo & Company (WFC) operates as a diversified financial services company with a significant presence in retail, commercial, and corporate banking. As of December 31, 2016, the company held $1.9 trillion in assets, $968 billion in loans, and $1.3 trillion in deposits, making it the third-largest bank holding company in the United States by assets. The company's primary subsidiary, Wells Fargo Bank, N.A., accounted for 89% of total assets. The company is subject to a complex regulatory environment overseen by various federal and state agencies, including the Federal Reserve Board, OCC, FDIC, and CFPB. These regulations impact capital requirements, dividend payments, and the scope of permissible activities. The Dodd-Frank Act, in particular, has led to enhanced supervision and stricter prudential requirements for large bank holding companies like Wells Fargo. The company's business is also sensitive to fiscal and monetary policies, particularly those of the Federal Reserve.

Financial Highlights

41 data points
Beta

Revenue

$88.27B

Net Income

$21.94B

24.9% Net Margin

EPS (Diluted)

$3.99

Total Assets

$1.93T

Cash & Equivalents

$221.40B

Free Cash Flow

$1.01B

Financial Statements
Beta
Revenue$88.27B
Interest Expense$5.91B
Net Income$21.94B
EPS (Basic)$4.03
EPS (Diluted)$3.99
Shares Outstanding (Basic)5.05B
Shares Outstanding (Diluted)5.11B

Key Highlights

  • 1Wells Fargo is a major U.S. financial services provider with $1.9 trillion in assets as of December 31, 2016.
  • 2The company operates through three main segments: Community Banking, Wholesale Banking, and Wealth and Investment Management.
  • 3Wells Fargo is subject to extensive regulation by federal agencies such as the Federal Reserve, OCC, and FDIC.
  • 4The Dodd-Frank Act has significantly influenced the regulatory landscape, imposing enhanced prudential standards.
  • 5The company's dividend payments and capital distributions are subject to regulatory approval and capital requirements.
  • 6Wells Fargo has an active stock repurchase program, authorized for up to 350 million shares of common stock in January 2016.
  • 7The company's business is sensitive to U.S. fiscal and monetary policies.

Frequently Asked Questions

Wells Fargo operates through three primary segments for management reporting: Community Banking, Wholesale Banking, and Wealth and Investment Management. These segments encompass a wide range of financial services for individuals, businesses, and institutions.

Wells Fargo is subject to comprehensive regulation by various federal and state bodies, including the Federal Reserve, OCC, and FDIC. Regulations influence capital adequacy, liquidity, dividend payments, and permissible business activities. The Dodd-Frank Act, for example, has led to increased scrutiny and enhanced prudential requirements.

In January 2016, Wells Fargo's Board of Directors authorized the repurchase of up to 350 million shares of common stock, primarily to meet team member benefit plan requirements. The company also has an ongoing authorization to repurchase up to $1 billion of warrants.

Dividend payments by Wells Fargo are subject to restrictions imposed by federal and state statutes and regulations. The Federal Reserve requires large bank holding companies to submit annual capital plans for approval before making capital distributions like dividends. Additionally, regulatory policies and capital guidelines, including Basel III and supplementary leverage ratio requirements, can influence the ability to pay dividends.