WELLS FARGO & COMPANY/MN Quarterly Report for Q1 Ended Mar 31, 2017

Summary

Wells Fargo & Company reported solid financial results for the first quarter of 2017, with net income applicable to common stock reaching $5.06 billion, or $1.00 per diluted share. This performance marks the 18th consecutive quarter of earnings exceeding $5 billion, showcasing the company's resilient business model amid market volatility. Total revenue was $22.0 billion, a slight decrease of 1% year-over-year, primarily due to lower mortgage banking income and other noninterest income, partially offset by a 5% increase in net interest income. Key financial strengths include growth in average loans by 4% to $963.6 billion and record total deposits of $1.3 trillion, up 7% year-over-year. The company also demonstrated strong capital generation, with its Common Equity Tier 1 ratio under Basel III at 11.23%. Wells Fargo continued its commitment to shareholder returns by repurchasing $3.1 billion in common stock and dividends, while also reducing its common shares outstanding to below 5 billion for the first time since 2009. The company is actively addressing the consequences of past sales practices through a comprehensive action plan aimed at rebuilding trust.

Key Highlights

• 1Net income applicable to common stock was $5.06 billion, resulting in diluted EPS of $1.00.
• 2Total revenue was $22.0 billion, a 1% decrease year-over-year, driven by lower mortgage banking income.
• 3Average loans increased by 4% to $963.6 billion.
• 4Total deposits reached a record $1.3 trillion, up 7% year-over-year.
• 5The Common Equity Tier 1 (CET1) ratio was 11.23% under Basel III, demonstrating strong capital adequacy.
• 6Returned $3.1 billion to shareholders through common stock dividends and net share repurchases.
• 7Continued efforts to rebuild trust and address sales practices matters, including significant clawbacks and customer remediation.

Frequently Asked Questions