Wells Fargo 10-Q: Q2 2024 Financial Update

TL;DR

**WFC Q2 24 10-Q filed. Financials look steady.**

AI Summary

Wells Fargo & Company/MN filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial metrics and business segment information are presented, reflecting the company's ongoing activities in the banking sector.

Why It Matters

This filing provides investors and analysts with a detailed look at Wells Fargo's financial health and operational performance during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a major financial institution, Wells Fargo is subject to various market, regulatory, and economic risks inherent in the banking industry.

Key Numbers

• 1.6666 — Share Price (Indicates the stock price at the time of filing.)
• 0.050 — Other Assets (Represents a portion of the company's asset base.)
• 1.410 — Other Assets (Represents a portion of the company's asset base.)
• 0.242 — Other Liabilities (Represents a portion of the company's liabilities.)
• 0.055 — Other Liabilities (Represents a portion of the company's liabilities.)

Key Players & Entities

• WELLS FARGO & COMPANY/MN (company) — Filer
• 0000072971 (company) — Central Index Key
• 20240630 (date) — Period of Report
• 20240801 (date) — Filed as of Date
• 420 MONTGOMERY STREET (address) — Business Address
• SAN FRANCISCO (location) — Business City
• CA (location) — Business State
• 94104 (zip_code) — Business Zip

FAQ

Key Financial Figures

• $1 — ich Registered Common Stock, par value $1-2/3 WFC New York Stock Exchange ( N
• $1.9 — services company that has approximately $1.9 trillion in assets. We provide a divers
• $1 billion — e Currency (OCC) to pay an aggregate of $1 billion in civil money penalties to resolve mat
• $250 million — n September 9, 2021, the OCC assessed a $250 million civil money penalty against the Company
• $1.7 billion — to consumer deposit accounts; and pay a $1.7 billion civil penalty to the CFPB. The required
• $678 million — munications with our regulators. We had $678 million and $819 million of accrued liabilities
• $819 million — our regulators. We had $678 million and $819 million of accrued liabilities for customer rem
• $0.40 — d quarter 2024 common stock dividend to $0.40 per share. In July 2024, we issued $2.
• $2.0 billion — .40 per share. In July 2024, we issued $2.0 billion of our Preferred Stock, Series FF. For
• $1.9 billion — ted amount of our special assessment of $1.9 billion (pre-tax) in fourth quarter 2023. Durin
• $52 million — nce fund, and we expensed an additional $52 million and $336 million (pre-tax) in the secon
• $336 million — expensed an additional $52 million and $336 million (pre-tax) in the second quarter and fir
• $4.9 billion — . In second quarter 2024, we generated $4.9 billion of net income and diluted earnings per
• $1.25 — illion of net income and diluted EPS of $1.25 in the same period a year ago. In the f
• $9.5 billion — In the first half of 2024, we generated $9.5 billion of net income and diluted EPS of $2.53,

Filing Documents

• wfc-20240630.htm (10-Q) — 11340KB
• wfc-0630x2024xex3a.htm (EX-3.A) — 1086KB
• wfc-0630x2024xex10a.htm (EX-10.A) — 346KB
• wfc-0630x2024xex31a.htm (EX-31.A) — 11KB
• wfc-0630x2024xex31b.htm (EX-31.B) — 11KB
• wfc-0630x2024xex32a.htm (EX-32.A) — 7KB
• wfc-0630x2024xex32b.htm (EX-32.B) — 6KB
• wfc-20240630_g1.jpg (GRAPHIC) — 49KB
• wfc-20240630_g2.jpg (GRAPHIC) — 48KB
• wfc-20240630_g3.jpg (GRAPHIC) — 28KB
• wflogoa.jpg (GRAPHIC) — 10KB
• 0000072971-24-000185.txt ( ) — 51317KB
• wfc-20240630.xsd (EX-101.SCH) — 214KB
• wfc-20240630_cal.xml (EX-101.CAL) — 322KB
• wfc-20240630_def.xml (EX-101.DEF) — 1448KB
• wfc-20240630_lab.xml (EX-101.LAB) — 2047KB
• wfc-20240630_pre.xml (EX-101.PRE) — 1723KB
• wfc-20240630_htm.xml (XML) — 13280KB

Financial Information

PART I Financial Information

Financial Statements Page

Item 1. Financial Statements Page Consolidated Statement of Income 58 Consolidated Statement of Comprehensive Income 59 Consolidated Balance Sheet 60 Consolidated Statement of Changes in Equity 61 Consolidated Statement of Cash Flows 63

Notes to Financial Statements

Notes to Financial Statements 1 — Summary of Significant Accounting Policies 64 2 — Trading Activities 66 3 — Available-for-Sale and Held-to-Maturity Debt Securities 67 4 — Equity Securities 73 5 — Loans and Related Allowance for Credit Losses 75 6 — Mortgage Banking Activities 89 7 — Intangible Assets and Other Assets 91 8 — Leasing Activity 92 9 — Preferred Stock 93 10 — Legal Actions 94 11 — Derivatives 96 12 — Fair Values of Assets and Liabilities 103 13 — Securitizations and Variable Interest Entities 111 14 — Guarantees and Other Commitments 117 15 — Securities and Other Collateralized Financing Activities 119 16 — Pledged Assets and Collateral 121 17 — Operating Segments 122 18 — Revenue and Expenses 125 19 — Employee Benefits 128 20 — Earnings and Dividends Per Common Share 129 21 — Other Comprehensive Income 130 22 — Regulatory Capital Requirements and Other Restrictions 132

Management's Discussion and Analysis of Financial Condition and Results of Operations (Financial Review)

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Financial Review) Summary Financial Data 2 Overview 3 Earnings Performance 6 Balance Sheet Analysis 25 Off-Balance Sheet Arrangements 27 Risk Management 28 Capital Management 45 Regulatory Matters 51 Critical Accounting Policies 53 Current Accounting Developments 53

Forward-Looking Statements 54

Forward-Looking Statements 54 Risk Factors 56 Glossary of Acronyms 134

Quantitative and Qualitative Disclosures About Market Risk 39

Item 3. Quantitative and Qualitative Disclosures About Market Risk 39

Controls and Procedures 57

Item 4. Controls and Procedures 57

Other Information

PART II Other Information

Legal Proceedings 135

Item 1. Legal Proceedings 135

Risk Factors 135

Item 1A. Risk Factors 135

Unregistered Sales of Equity Securities and Use of Proceeds 135

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 135

Other Information 135

Item 5. Other Information 135

Exhibits 136

Item 6. Exhibits 136 Signature 137 Wells Fargo & Company 1 FINANCIAL REVIEW Summary Financial Data Quarter ended Jun 30, 2024 % Change from Six months ended ($ in millions, except ratios and per share amounts) Jun 30, 2024 Mar 31, 2024 Jun 30, 2023 Mar 31, 2024 Jun 30, 2023 Jun 30, 2024 Jun 30, 2023 % Change Selected Income Statement Data Total revenue $ 20,689 20,863 20,533 (1) % 1 $ 41,552 41,262 1 % Noninterest expense 13,293 14,338 12,987 (7) 2 27,631 26,663 4 Pre-tax pre-provision profit (PTPP) (1) 7,396 6,525 7,546 13 (2) 13,921 14,599 (5) Provision for credit losses (2) 1,236 938 1,713 32 (28) 2,174 2,920 (26) Wells Fargo net income 4,910 4,619 4,938 6 (1) 9,529 9,929 (4) Wells Fargo net income applicable to common stock 4,640 4,313 4,659 8 — 8,953 9,372 (4) Common Share Data Diluted earnings per common share 1.33 1.20 1.25 11 6 2.53 2.48 2 Dividends declared per common share 0.35 0.35 0.30 — 17 0.70 0.60 17 Common shares outstanding 3,402.7 3,501.7 3,667.7 (3) (7) Average common shares outstanding 3,448.3 3,560.1 3,699.9 (3) (7) 3,504.2 3,742.6 (6) Diluted average common shares outstanding 3,486.2 3,600.1 3,724.9 (3) (6) 3,543.2 3,772.4 (6) Book value per common share (3) $ 47.01 46.40 43.87 1 7 Tangible book value per common share (3)(4) 39.57 39.17 36.53 1 8 Selected Equity Data (period-end) Total equity 178,148 182,674 181,952 (2) (2) Common stockholders' equity 159,963 162,481 160,916 (2) (1) Tangible common equity (4) 134,660 137,163 133,990 (2) 1 Performance Ratios Return on average assets (ROA) (5) 1.03 % 0.97 1.05 1.00 % 1.07 Return on average equity (ROE) (6) 11.5 10.5 11.4 11.0 11.6 Return on average tangible common equity (ROTCE) (4) 13.7 12.3 13.7 13.0 13.9 Efficiency ratio (7) 64 69 63 66 65 Net interest margin on a taxable-equivalent basis 2.75 2.81 3.09 2.78 3.14 Selected Balance Sheet Data (average) Loans $ 916,977 928,075 945,906 (1) (3) $ 922,526 947,271 (3) Assets 1,914,647 1,916,974 1,878

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View this 10-Q filing on SEC EDGAR