Summary
Wells Fargo & Company/MN (WFC) in its 2017 10-K filing, filed on March 1, 2018, presents itself as a diversified financial services company with significant assets totaling $2.0 trillion at the end of 2017. The company operates across three main segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. A key operational point highlighted is the company's substantial workforce of 262,700 full-time equivalent team members. Investors should note that the financial services industry is highly competitive, with Wells Fargo facing competition from a wide array of traditional and non-traditional financial institutions. The filing also emphasizes the extensive regulatory oversight applicable to Wells Fargo as a bank holding company and financial holding company. This includes regulations from the Federal Reserve Board, OCC, FDIC, SEC, and CFPB, among others. Notably, the company's "Needs to Improve" rating for the Community Reinvestment Act (CRA) as of March 2017 imposes significant restrictions on its ability to engage in new activities or acquire other companies. Furthermore, capital requirements, including Basel III and supplementary leverage ratio requirements, are critical for dividend payments and other capital distributions.
Financial Highlights
41 data points| Revenue | $88.39B |
| Interest Expense | $9.35B |
| Net Income | $22.18B |
| EPS (Basic) | $4.14 |
| EPS (Diluted) | $4.10 |
| Shares Outstanding (Basic) | 4.96B |
| Shares Outstanding (Diluted) | 5.02B |
Key Highlights
- 1As of December 31, 2017, Wells Fargo held $2.0 trillion in assets, $957 billion in loans, and $1.3 trillion in deposits, positioning it as the third-largest bank holding company in the United States by assets.
- 2The company operates through three primary business segments: Community Banking, Wholesale Banking, and Wealth and Investment Management.
- 3Wells Fargo employed approximately 262,700 full-time equivalent team members as of December 31, 2017.
- 4The financial services industry is highly competitive, with Wells Fargo facing pressure from banks, credit unions, finance companies, investment banks, and increasingly, nonbank and online entities.
- 5The company is subject to extensive regulation from various bodies including the Federal Reserve Board, OCC, FDIC, SEC, and CFPB.
- 6A 'Needs to Improve' CRA rating received in March 2017 imposes restrictions on the company's ability to engage in new activities or acquire other entities.
- 7Significant capital requirements and ratios, including those under Basel III and supplementary leverage ratio rules, are in place and impact the company's ability to make capital distributions like dividends.