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10-QPeriod: Q2 FY2015

WELLS FARGO & COMPANY/MN Quarterly Report for Q2 Ended Jun 30, 2015

Filed August 5, 2015For Securities:WFCWFC-PDWFC-PCWFC-PYWFC-PAWFC-PLWFCNPWFC-PZ

Summary

Wells Fargo & Company (WFC) reported a solid financial performance for the second quarter of 2015, demonstrating resilience and growth across its diversified business model. Net income was $5.7 billion, or $1.03 per diluted share, largely consistent with the prior year's quarter, indicating stable profitability. Total revenue saw a modest increase of 1% year-over-year to $21.3 billion, driven by a 4% rise in net interest income, supported by a 7% growth in total loans to a record $888.5 billion. The company continued to strengthen its balance sheet with robust loan and deposit growth. Credit quality remained strong, with net charge-offs decreasing by 9% year-over-year. Furthermore, Wells Fargo increased its quarterly dividend by 7% to $0.375 per share, signaling confidence in its financial health and commitment to returning capital to shareholders. The bank also actively managed its capital position by repurchasing shares, indicating a focus on enhancing shareholder value.

Financial Statements
Beta
Interest Expense$956.00M
Net Income$5.72B
EPS (Basic)$1.04
EPS (Diluted)$1.03
Shares Outstanding (Basic)5.15B
Shares Outstanding (Diluted)5.22B

Key Highlights

  • 1Net income of $5.7 billion, or $1.03 per diluted share, largely in line with the prior year.
  • 2Total revenue increased 1% to $21.3 billion, with net interest income up 4%.
  • 3Total loans reached a record $888.5 billion, a 7% increase year-over-year, with core loans growing 9%.
  • 4Average core deposits increased 8% to $1.1 trillion.
  • 5Net charge-offs decreased 9% year-over-year, with credit quality continuing to improve.
  • 6Quarterly dividend increased 7% to $0.375 per share.
  • 7Common Equity Tier 1 (CET1) ratio under Basel III remained strong at 10.78% on a standardized approach basis.

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