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Full year 2018 financial results:

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Net income of $22.4 billion , compared with $22.2 billion in 2017

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Diluted earnings per share (EPS) of $4.28 , compared with $4.10

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Return on assets (ROA) of 1.19 percent, return on equity (ROE) of 11.53 percent, and return on average tangible common equity (ROTCE) of 13.73 percent ¹

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Revenue of $86.4 billion , down from $88.4 billion

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Noninterest expense of $56.1 billion , down from $58.5 billion

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Returned $25.8 billion to shareholders through common stock dividends and net share repurchases

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Net share repurchases of $17.9 billion, which more than doubled from $6.8 billion in 2017

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Common stock dividends of $1.64 per share, up 6 percent from $1.54 per share

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Period-end common shares outstanding down 310.3 million shares, or 6 percent

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Fourth quarter 2018 financial results:

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Net income of $6.1 billion , compared with $6.2 billion in fourth quarter 2017

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Diluted earnings per share (EPS) of $1.21 , compared with $1.16

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ROA of 1.28 percent, ROE of 12.89 percent, and ROTCE of 15.39 percent ¹  

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Revenue of $21.0 billion , down from $22.1 billion

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Net interest income of $12.6 billion , up $331 million

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Noninterest income of $8.3 billion , down $1.4 billion

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Noninterest expense of $13.3 billion , down $3.5 billion

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Income tax expense of $966 million , compared with an income tax benefit of $1.6 billion

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Average deposits of $1.3 trillion , down $42.6 billion , or 3 percent

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Average loans of $946.3 billion , down $5.5 billion , or 1 percent

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Provision expense of $521 million , down $130 million , or 20 percent

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Net charge-offs of 0.30 percent of average loans (annualized), down from 0.31 percent

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Reserve release ² of $200 million, compared with $100 million release

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Nonaccrual loans of $6.5 billion , down $1.2 billion , or 15 percent

(a)

Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on page 36.

(b)

The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

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Mortgage banking income was $467 million , down from $846 million in third quarter 2018. Net mortgage servicing income was $109 million , down from $390 million in the third quarter predominantly due to updated mortgage servicing rights valuation assumptions driven by recent market observations. The production margin on residential held-for-sale mortgage loan originations ⁴ decreased to 0.89  percent, from 0.97 percent in the third quarter, primarily due to lower retail margins, partially offset by a lower percentage of correspondent volume. Residential mortgage loan originations in the fourth quarter were $38 billion , down from $46 billion in the third quarter primarily due to seasonality.

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Market sensitive revenue ³ was $40 million , down from $631 million in third quarter 2018, primarily due to lower net gains from equity securities as lower deferred compensation plan investment results were partially offset by higher equity investment gains. The decrease related to the deferred compensation plan was offset by lower employee benefits expense. Revenue from trading activities declined compared with the prior quarter as well, driven by wider spreads in credit and asset backed products.

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Other income was $595 million , up from $466 million in the third quarter. The increase in the fourth quarter included a $117 million gain from the previously announced sale of 52 branches.

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Real estate 1-4 family first mortgage loans increased $792 million , as $9.8 billion of held-for-investment nonconforming mortgage loan originations were predominantly offset by payoffs and $1.6 billion of sales of purchased credit-impaired (PCI) Pick-a-Pay mortgage loans. Additionally, $562 million of nonconforming mortgage loan originations that would have otherwise been included in 1-4 family first mortgage loan outstandings were designated as held-for-sale in fourth quarter 2018 in anticipation of the future issuance of residential mortgage-backed securities (RMBS).

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Real estate 1-4 family junior lien mortgage loans decreased $932 million , as payoffs continued to exceed originations

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Credit card loans increased $1.2 billion primarily due to seasonality

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Automobile loans declined $1.0 billion due to expected continued runoff

(a)

Quarterly net charge-offs (recoveries) as a percentage of average loans are annualized. See explanation on page 33 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

(a)

Financial information for periods prior to December 31, 2018, has been revised to exclude mortgage loans held for sale (MLHFS), loans held for sale (LHFS) and loans held at fair value. For additional information, see the "Five Quarter Nonperforming Assets" table on page 32.

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Net income of $3.2 billion , up $353 million , or 13 percent, primarily due to lower noninterest expense and income tax expense, partially offset by lower revenue

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Revenue was $11.5 billion , down $355 million , or 3 percent , driven predominantly by lower mortgage banking income and lower market sensitive revenue reflecting lower deferred compensation plan investment results (offset in employee benefits expense), partially offset by a $117 million gain on the previously announced sale of 52 branches

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Noninterest expense of $7.0 billion was down $435 million , or 6 percent, driven mainly by lower deferred compensation expense (offset in market sensitive revenue), operating losses, and FDIC expense, partially offset by higher other expense

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Net income was down $303 million , or 9 percent , predominantly due to higher income tax expense, as fourth quarter 2017 included an income tax benefit from the Tax Act, and lower revenue, partially offset by lower noninterest expense

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Revenue declined $259 million , or 2  percent, predominantly due to lower market sensitive revenue and mortgage banking income, partially offset by gains from the sales of PCI Pick-a-Pay loans and the previously announced sale of 52 branches

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Noninterest expense decreased $3.2 billion , or 31 percent, driven by lower operating losses

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Provision for credit losses decreased $102 million , largely due to continued credit improvement in the automobile and consumer real estate portfolios

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Primary consumer checking customers ^{6 , 7} of 23.9 million, up 1.2 percent from a year ago. The previously announced sale of 52 branches and $1.8 billion of deposits which closed in fourth quarter 2018 reduced the growth rate by 0.5 percent

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More than 318,000 branch customer experience surveys completed during fourth quarter 2018 (over 1.4 million in 2018), with both ‘Customer Loyalty’ and ‘Overall Satisfaction with Most Recent Visit’ scores up from the prior quarter and reaching a 24-month high in December

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Debit card point-of-sale purchase volume ⁸ of $89.8 billion in the fourth quarter, up 8 percent year-over-year

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General purpose credit card point-of-sale purchase volume of $20.2 billion in the fourth quarter, up 5 percent year-over-year

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29.2 million digital (online and mobile) active customers, including 22.8 million mobile active users ^{7,   9}

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5,518 retail bank branches as of the end of fourth quarter 2018, reflecting 93 branch consolidations in the quarter and 300 in 2018; in addition, completed the previously announced sale of 52 branches in Indiana, Ohio, Michigan and part of Wisconsin in fourth quarter 2018

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Home Lending

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Originations of $38 billion , down from $46 billion in the prior quarter, primarily due to seasonality; included home equity originations of $673 million, down 6 percent from the prior quarter and up 14 percent from the prior year

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Applications of $48 billion , down from $57 billion in the prior quarter

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Application pipeline of $18 billion at quarter end, down from $22 billion at September 30, 2018

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Production margin on residential held-for-sale mortgage loan originations ⁴ of 0.89  percent, down from 0.97 percent in the prior quarter, primarily due to lower retail margins

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Automobile originations of $4.7 billion in the fourth quarter, up 9 percent from the prior year

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Student loan originations of $258 million in fourth quarter 2018, up 16 percent from the prior year

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Small Business Lending ¹⁰ originations of $595 million, up 19 percent from the prior year

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Net income of $2.7 billion , down $180 million , or 6 percent

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Revenue of $6.9 billion decreased $378 million , or 5 percent, as higher net interest income, commercial real estate brokerage and other fees were more than offset by lower market sensitive revenue, investment banking fees and other income

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Noninterest expense of $4.0 billion increased $90 million , or 2 percent, reflecting higher operating lease expense, partially offset by lower FDIC expense

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Provision for credit losses decreased $54 million , driven primarily by higher recoveries

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Net income increased $298 million , or 13 percent, as fourth quarter 2018 results benefited from a lower effective income tax rate

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Revenue decreased $514 million , or 7  percent, largely due to the impact of the sales of Wells Fargo Insurance Services USA (WFIS) in fourth quarter 2017 and Wells Fargo Shareowner Services in first quarter 2018, as well as lower market sensitive revenue, operating lease income and treasury management fees, partially offset by increases related to losses taken in fourth quarter 2017 from adjustments to leveraged leases and other tax advantaged businesses due to the Tax Act

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Noninterest expense decreased $162 million , or 4  percent, on lower expense related to the sales of WFIS and Wells Fargo Shareowner Services, as well as lower project-related expense and FDIC expense, partially offset by higher regulatory, risk and technology expense

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Commercial card spend volume ¹¹ of $8.6 billion, up 11 percent from the prior year on increased transaction volumes primarily reflecting customer growth, and up 5 percent compared with third quarter 2018

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U.S. investment banking market share of 3.2 percent in 2018 ¹² , compared with 3.6 percent in 2017 ¹²  

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Net income of $689 million , down $43 million , or 6  percent

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Revenue of $4.0 billion decreased $269 million , or 6 percent, mostly due to net losses from equity securities on lower deferred compensation plan investment results of $218 million (offset in employee benefits expense) and lower asset-based fees

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Noninterest expense of $3.0 billion decreased $199 million , or 6 percent, primarily driven by lower employee benefits from deferred compensation plan expense of $216 million (offset in deferred compensation plan investments)

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Net income up $14 million , or 2 percent, as fourth quarter 2018 results benefited from a lower effective income tax rate

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Revenue decreased $376 million , or 9 percent, primarily driven by lower deferred compensation plan investment results of $235 million (offset in employee benefits expense), asset-based fees, brokerage transaction revenue, and net interest income

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Noninterest expense decreased $202 million , or 6 percent, primarily due to lower employee benefits from deferred compensation plan expense of $234 million (offset in deferred compensation plan investments) and lower FDIC expense, partially offset by higher regulatory, risk and technology expense

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WIM total client assets of $1.7 trillion, down 10 percent from a year ago, driven primarily by lower market valuations, as well as net outflows

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Average loan balances up 3 percent from a year ago largely due to growth in nonconforming mortgage loans

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Full year 2018 closed referred investment assets (referrals resulting from the WIM/Community Banking partnership) of $10.1 billion, down 2 percent compared with 2017

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Client assets of $1.5 trillion, down 10 percent from prior year, driven primarily by lower market valuations, as well as net outflows

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Advisory assets of $501 billion, down 8 percent from prior year, driven primarily by lower market valuations, as well as net outflows

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Client assets of $224 billion, down 10 percent from prior year, driven primarily by lower market valuations, as well as lower deposit balances

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Total assets under management (AUM) of $466 billion, down 8 percent from prior year, primarily due to equity and fixed income net outflows, the sale of Wells Fargo Asset Management's ownership stake in The Rock Creek Group, LP and removal of the associated AUM, and lower market valuations, partially offset by higher money market fund net inflows

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IRA assets of $373 billion, down 9 percent from prior year

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Institutional Retirement plan assets of $364 billion, down 8 percent from prior year

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current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;

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our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

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financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

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the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;

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the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;

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negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;

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our ability to realize any efficiency ratio or expense target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or

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the effect of the current interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;

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significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our debt securities and equity securities portfolios;

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the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;

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negative effects from the retail banking sales practices matter and from other instances where customers may have experienced financial harm, including on our legal, operational and compliance costs, our ability to engage in certain business activities or offer certain products or services, our ability to keep and attract customers, our ability to attract and retain qualified team members, and our reputation;

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resolution of regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;

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a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;

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the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

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fiscal and monetary policies of the Federal Reserve Board; and

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the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017.