WELLS FARGO & COMPANY/MN (Form: 8-K, Received: 01/15/2021 07:47:49)

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): January 15, 2021

WELLS FARGO & COMPANY

(Exact name of registrant as specified in its charter)

Delaware

001-02979

No.

41-0449260

(State or Other Jurisdiction
of Incorporation)

(Commission File
Number)

(IRS Employer
Identification No.)

420 Montgomery Street, San Francisco, California 94104

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: 1-866-249-3302

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $1-2/3	WFC	NYSE
7.5% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L	WFC.PRL	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series N	WFC.PRN	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series O	WFC.PRO	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series P	WFC.PRP	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of 5.85% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series Q	WFC.PRQ	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series R	WFC.PRR	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series W	WFC.PRW	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series X	WFC.PRX	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Y	WFC.PRY	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Z	WFC.PRZ	NYSE
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series AA	WFC.PRA	NYSE
Guarantee of 5.80% Fixed-to-Floating Rate Normal Wachovia Income Trust Securities of Wachovia Capital Trust III	WFC/TP	NYSE
Guarantee of Medium-Term Notes, Series A, due October 30, 2028 of Wells Fargo Finance LLC	WFC/28A	NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b‑2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02 Results of Operations and Financial Condition.

On January 15, 2021, Wells Fargo & Company (the “Company”) issued a news release regarding its results of operations and financial condition for the quarter ended December 31, 2020, and posted on its website its 4Q20 Quarterly Supplement, which contains certain additional information about the Company’s financial results for the quarter ended December 31, 2020. The news release is included as Exhibit 99.1 and the 4Q20 Quarterly Supplement is included as Exhibit 99.2 to this report, and each is incorporated by reference into this Item 2.02. The information included in Exhibit 99.1 and Exhibit 99.2 is considered to be “filed” for purposes of Section 18 under the Securities Exchange Act of 1934.

Item 7.01 Regulation FD Disclosure

On January 15, 2021, the Company intends to host a live conference call that will also be available by webcast to discuss the Company’s fourth quarter 2020 financial results and other matters relating to the Company. In connection therewith, the Company has posted on its website presentation materials containing certain historical and forward-looking information relating to the Company. The presentation materials are included as Exhibit 99.3 to this report and are incorporated by reference into this Item 7.01. Except for the “2021 net interest income expectations” portion on page 16 of the presentation materials, which portion shall be considered “filed,” the rest of Exhibit 99.3 shall not be considered “filed” for purposes of Section 18 under the Securities Exchange Act of 1934 and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

Item 9.01 Financial Statements and Exhibits.


Exhibit No.	Description	Location
99.1	News Release dated January 15, 2021	Filed herewith
99.2	4Q20 Quarterly Supplement	Filed herewith
99.3	Presentation Materials – Presentation Materials – 4Q20 Financial Results Financial Results	Furnished herewith, except for the “2021 net interest income expectations” portion on page 16, which portion is deemed filed herewith
104	Cover Page Interactive Data File	Embedded within the Inline XBRL document

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Dated:	January 15, 2021	WELLS FARGO & COMPANY

		By:	/s/ MUNEERA S. CARR
			Muneera S. Carr
			Executive Vice President, Chief Accounting Officer and Controller


			News Release \| January 15, 2021 Wells Fargo Reports Fourth Quarter 2020 Net Income of $3.0 billion, or $0.64 per Diluted Share

Company-wide Financial Summary


		Quarter ended
		Dec 31, 2020			Dec 31, 2019
Selected Income Statement Data ($ in millions except per share amounts)
	Total revenue	$	17,925		19,860
	Noninterest expense	14,802			15,614
	Provision for credit losses	(179)			644
	Net income	2,992			2,873
	Diluted earnings per common share	0.64			0.60

Selected Balance Sheet Data ($ in billions)
	Average loans	$	899.7		956.5
	Average deposits	1,380.1			1,321.9
	CET11	11.6		%	11.1

Performance Metrics
	ROE2	6.4		%	5.9
	ROTCE3	7.7			7.1


Operating Segments and Other Highlights4

Consumer Banking and Lending

◦Average loans of $373.9 billion, down 2%

◦Average deposits of $763.2 billion, up 18%

Commercial Banking

◦Average loans of $190.9 billion, down 15%

◦Average deposits of $203.6 billion, up 6%

Corporate and Investment Banking

◦Average loans of $239.8 billion, down 4%

◦Average trading-related assets of $190.4 billion, down 19%

◦Average deposits of $205.8 billion, down 20%

Wealth and Investment Management

◦Total client assets of $2.0 trillion, up 6%

◦Average loans of $80.1 billion, up 5%

◦Average deposits of $169.9 billion, up 22%

Capital

◦The Company’s Board of Directors approved an increase in the Company’s authority to repurchase common stock by an additional 500 million shares, bringing the total authorized amount to 667 million common shares


Fourth quarter 2020 results included:

◦$(781) million, or ($0.14) per share, impact of restructuring charges

◦$757 million, or $0.14 per share, reserve release due to the announced sale of our student loan portfolio

◦$(321) million, or ($0.06) per share, impact of customer remediation accruals


Chief Executive Officer Charlie Scharf commented on the quarter, “Although our financial performance improved and we earned $3.0 billion in the fourth quarter, our results continued to be impacted by the unprecedented operating environment and the required work to put our substantial legacy issues behind us.” “Our agenda is clear and we are making progress. We have prioritized and are moving forward on our risk and control buildout – the recently terminated BSA/AML consent order is just one of many, but it is an important step forward; we have a new management team in place; the disciplines we use to manage the company are completely different than one year ago; we have clarified our strategic priorities and are exiting certain non-strategic businesses; and we have identified and are implementing a series of actions to improve our financial performance,” Scharf added. “With a more consistent broad-based recovery and as we continue to press forward with our agenda, we expect you will see that this franchise is capable of much more” Scharf concluded.

1 Represents the lower of our Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach and under the Advanced Approach. See tables on pages 25-26 of the 4Q20 Quarterly Supplement for more information on CET1. CET1 is a preliminary estimate.

2 Return on equity (ROE) represents Wells Fargo net income (loss) applicable to common stock divided by average common stockholders’ equity.

3 Tangible common equity and return on average tangible common equity (ROTCE) are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on pages 23-24 of the 4Q20 Quarterly Supplement.

4 Comparisons in the bullet points are for fourth quarter 2020 versus fourth quarter 2019, unless otherwise specified.

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2020, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Selected Company-wide Financial Information


					Quarter ended		Dec 31, 2020 % Change from			Year ended
		Dec 31, 2020			Sep 30, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019	Dec 31, 2020			Dec 31, 2019
Earnings ($ in millions except per share amounts)
	Net interest income	$	9,275		9,368	11,200	(1)	%	(17)	$	39,835		47,231
	Noninterest income	8,650			9,494	8,660	(9)		—	32,505			37,832
	Total revenue	17,925			18,862	19,860	(5)		(10)	72,340			85,063
	Net charge-offs	584			731	769	(20)		(24)	3,370			2,762
	Increase (decrease) in the allowance for credit losses	(763)			38	(125)	NM		510	10,759			(75)
	Provision for credit losses	(179)			769	644	NM		NM	14,129			2,687
	Noninterest expense	14,802			15,229	15,614	(3)		(5)	57,630			58,178
	Income tax expense (benefit)	108			645	678	(83)		(84)	(3,005)			4,157

	Wells Fargo net income	$	2,992		2,035	2,873	47		4	$	3,301		19,549
	Diluted earnings per common share	0.64			0.42	0.60	52		7	0.41			4.05

Balance Sheet Data (average) ($ in billions)
	Loans	$	899.7		931.7	956.5	(3)		(6)	$	941.8		951.0
	Deposits	1,380.1			1,399.0	1,321.9	(1)		4	1,376.0			1,286.3
	Assets	1,926.9			1,947.7	1,941.8	(1)		(1)	1,943.5			1,913.4

Financial Ratios
	Return on assets (ROA)	0.62		%	0.42	0.59				0.17		%	1.02
	Return on equity (ROE)	6.4			4.2	5.9				1.0			10.2
	Return on average tangible common equity (ROTCE) (a)	7.7			5.1	7.1				1.3			12.2
	Efficiency ratio (b)	83			81	79				80			68
	Net interest margin	2.13			2.13	2.53				2.27			2.73

NM – Not meaningful

(a)Tangible common equity and return on average tangible common equity are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on pages 23-24 of the 4Q20 Quarterly Supplement.

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

Fourth Quarter 2020 vs. Fourth Quarter 2019

◦Net interest income decreased 17%, primarily due to the impact of lower interest rates, which drove a repricing of the balance sheet, lower loan balances primarily due to weak demand and elevated prepayments, lower investment securities balances, and higher mortgage-backed securities premium amortization

◦Noninterest income was slightly down. Higher mortgage banking fees and gains in our affiliated venture capital and private equity partnerships were more than offset by the gain on the sale of our commercial real estate brokerage business in fourth quarter 2019, as well as lower deposit-related fees and net gains from trading activities

◦Noninterest expense decreased 5%, predominantly due to lower operating losses. Fourth quarter 2020 operating losses included $321 million of customer remediation accruals, while fourth quarter 2019 included $1.5 billion of litigation accruals. Additionally, travel expense and advertising expense declined as a result of the COVID-19 pandemic, while professional and outside services expense declined primarily due to efficiency initiatives. These decreases were partially offset by $781 million of restructuring charges

◦Provision for credit losses decreased $823 million, predominantly due to a $757 million reserve release due to the announced sale of our student loan portfolio, as well as lower net charge-offs

Selected Company-wide Capital and Liquidity Information


					Quarter ended
($ in billions)		Dec 31, 2020			Sep 30, 2020	Dec 31, 2019
Capital:
	Total equity	$	185.9		182.0	188.0
	Common stockholders’ equity	164.8			161.1	166.7
	Tangible common equity (a)	136.9			133.2	138.5
	CET1 (b)	11.6		%	11.4	11.1
	Total loss absorbing capacity (TLAC) (c)	25.8			25.8	23.3

Liquidity:
	LCR (d)	133			134	120

(b)Represents the lower of our Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach and under the Advanced Approach. See tables on pages 25-26 of the 4Q20 Quarterly Supplement for more information on CET1. CET1 is a preliminary estimate.

(c)TLAC is a preliminary estimate.

(d)Liquidity coverage ratio (LCR) is calculated as high-quality liquid assets divided by projected net cash outflows, as each is defined under the LCR rule. LCR is a preliminary estimate.

Selected Company-wide Loan Credit Information


					Quarter ended
($ in millions)		Dec 31, 2020			Sep 30, 2020	Dec 31, 2019
Provision for credit losses for loans		$	(144)		751	644
Net loan charge-offs		584			683	769
	As a % of average total loans (annualized)	0.26		%	0.29	0.32

Total nonaccrual loans		$	8,728		8,022	5,346
	As a % of total loans	0.98		%	0.87	0.56
Total nonperforming assets		$	8,887		8,178	5,649
	As a % of total loans	1.00		%	0.89	0.59

Allowance for credit losses for loans		$	19,713		20,471	10,456
	As a % of total loans	2.22		%	2.22	1.09

Fourth Quarter 2020 vs. Third Quarter 2020

◦Net loan charge-offs as a percentage of average loans was 0.26% (annualized) for both commercial and consumer loans. Both portfolios saw declines in losses and net charge-off rates. Commercial net loan charge-offs were impacted by a small number of credit exposures in the commercial real estate portfolio. Consumer losses decreased as the impacts of government stimulus programs and customer accommodations, including payment deferrals, continued to impact performance

◦Nonperforming assets increased 9%. Nonaccrual loans increased $706 million predominantly due to increases in the commercial real estate, residential mortgage, and lease financing portfolios, partially offset by a decrease in the commercial and industrial portfolio

◦Allowance for credit losses for loans decreased $758 million predominantly due to the announced sale of our student loan portfolio

Business Segment Performance

We reorganized our management reporting into four reportable operating segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. All other business activities that are not included in the reportable operating segments have been included in Corporate. We define our operating segments by type of product and customer segment, and their results are based on our management reporting process. The management reporting process measures the performance of the operating segments based on the Company’s management structure, and the results are regularly reviewed by our Chief Executive Officer and Operating Committee. Prior period operating segment results have been revised to reflect this reorganization. The reorganization did not impact the previously reported consolidated financial results of the Company.

Consumer Banking and Lending offers diversified financial products and services for consumers and small businesses with annual sales generally up to $5 million. These financial products and services include checking and savings accounts, credit and debit cards, as well as home, auto, personal, and small business lending.

Selected Financial Information


			Quarter ended				Dec 31, 2020 % Change from
			Dec 31, 2020		Sep 30, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019
Earnings (in millions)
	Consumer and Small Business Banking		$	4,701	4,721	5,098	—	%	(8)
	Consumer Lending:
		Home Lending	1,995		2,527	1,960	(21)		2
		Credit Card	1,372		1,345	1,470	2		(7)
		Auto	403		404	387	—		4
		Personal Lending	142		149	167	(5)		(15)

	Total revenue		8,613		9,146	9,082	(6)		(5)
	Provision for credit losses		351		640	485	(45)		(28)
	Noninterest expense		6,441		7,345	7,421	(12)		(13)

	Net income		$	1,364	871	632	57		116

Average balances (in billions)
	Loans		$	373.9	379.8	383.1	(2)		(2)
	Deposits		763.2		756.5	646.1	1		18

Fourth Quarter 2020 vs. Fourth Quarter 2019

◦Revenue decreased 5%

▪Consumer and Small Business Banking was down 8% primarily due to the impact of lower interest rates and lower deposit-related fees on reduced transaction activity and higher fee waivers provided in response to the COVID-19 pandemic

▪Home Lending was up 2% as higher mortgage banking results were partially offset by lower net interest income, primarily driven by lower loan balances

▪Credit Card was down 7% driven by lower balances and lower fees due to reduced activity as a result of the COVID-19 pandemic

▪Auto was up 4% on higher net interest income, while Personal Lending was down 15% driven by lower loan balances

◦Noninterest expense decreased 13%, predominantly due to lower operating losses and marketing and advertising expense

◦Provision for credit losses decreased $134 million driven by lower net charge-offs across the consumer loan portfolios, which included the impacts of government stimulus programs and customer payment deferral activities

Commercial Banking provides financial solutions to private, family owned and certain public companies. Products and services include banking and credit products across multiple industry sectors and municipalities, secured lending and lease products, and treasury management.

Selected Financial Information


		Quarter ended				Dec 31, 2020 % Change from
		Dec 31, 2020		Sep 30, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019
Earnings (in millions)
	Middle Market Banking	$	1,149	1,196	1,545	(4)	%	(26)
	Asset-Based Lending and Leasing	1,029		976	1,085	5		(5)
	Other	210		188	265	12		(21)
	Total revenue	2,388		2,360	2,895	1		(18)
	Provision for credit losses	69		339	30	(80)		130
	Noninterest expense	1,690		1,762	1,812	(4)		(7)

	Net income	$	473	195	792	143		(40)

Average balances (in billions)
	Loans	$	190.9	201.9	225.5	(5)		(15)
	Deposits	203.6		198.0	192.3	3		6

Fourth Quarter 2020 vs. Fourth Quarter 2019

◦Revenue decreased 18%

▪Middle Market Banking was down 26% primarily due to the impact of lower interest rates and lower loan balances due to reduced demand and line utilization driven by clients’ liquidity needs, as well as a soft economic environment

▪Asset-Based Lending and Leasing was down 5% driven by the impact of lower interest rates and lower loan balances on reduced loan demand and line utilization

◦Noninterest expense decreased 7% primarily driven by lower personnel expense as a result of efficiency initiatives, as well as lower professional and outside services expense

Corporate and Investment Banking delivers a suite of capital markets, banking and financial products and services to corporate, commercial real estate, government and institutional clients globally. Products and services include corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity and fixed income solutions, as well as sales, trading, and research capabilities.

Selected Financial Information


			Quarter ended				Dec 31, 2020 % Change from
			Dec 31, 2020		Sep 30, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019
Earnings (in millions)
	Banking:
		Lending	$	424	422	451	—	%	(6)
		Treasury Management and Payments	384		395	527	(3)		(27)
		Investment Banking	348		295	358	18		(3)
	Total Banking		1,156		1,112	1,336	4		(13)
	Commercial Real Estate		964		835	862	15		12
	Markets:
		Fixed Income, Currencies, and Commodities (FICC)	889		1,005	897	(12)		(1)
		Equities	194		312	257	(38)		(25)
		Credit Adjustment (CVA/DVA) and Other	(67)		62	14	NM		NM
	Total Markets		1,016		1,379	1,168	(26)		(13)
	Other		(30)		(39)	(37)	(23)		(19)
	Total revenue		3,106		3,287	3,329	(6)		(7)
	Provision for credit losses		186		(121)	77	NM		142
	Noninterest expense		1,798		1,991	1,821	(10)		(1)

	Net income		$	841	1,062	1,073	(21)		(22)

Average balances (in billions)
	Loans		$	239.8	249.9	250.9	(4)		(4)
	Deposits		205.8		226.1	258.8	(9)		(20)

NM – Not meaningful

Fourth Quarter 2020 vs. Fourth Quarter 2019

◦Revenue decreased 7%

▪Banking was down 13% primarily due to lower Treasury Management and Payments revenue, predominantly driven by the impact of lower interest rates and lower deposit balances, predominantly due to actions taken to manage under the asset cap

▪Commercial Real Estate was up 12% primarily driven by our low income housing business, which in fourth quarter 2019 included lower revenue due to the timing of expected tax benefit recognition

▪Markets was down 13% primarily due to lower Credit Adjustment revenue driven by wider credit spreads and lower Equities revenue primarily driven by lower equity derivatives trading and lower equity financing revenue

◦Provision for credit losses increased $109 million primarily driven by higher losses in the commercial real estate portfolio

Wealth and Investment Management provides personalized wealth management, investment and retirement products and services to clients across U.S.-based businesses including Wells Fargo Advisors, The Private Bank, Abbot Downing, and Wells Fargo Asset Management. We serve clients’ brokerage needs, and deliver financial planning, private banking, credit and fiduciary services to high-net worth and ultra-high-net worth individuals and families.

Selected Financial Information


		Quarter ended				Dec 31, 2020 % Change from
		Dec 31, 2020		Sep 30, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019
Earnings (in millions)
	Net interest income	$	715	718	885	—	%	(19)
	Noninterest income	3,074		2,915	3,075	5		—
	Total revenue	3,789		3,633	3,960	4		(4)
	Provision for credit losses	(4)		(10)	(1)	(60)		300
	Noninterest expense	3,056		3,009	3,673	2		(17)

	Net income	$	548	474	213	16		157

Average balances (in billions)
	Loans	$	80.1	79.0	76.4	1		5
	Deposits	169.9		169.5	139.0	—		22

Fourth Quarter 2020 vs. Fourth Quarter 2019

◦Revenue decreased 4%, predominantly driven by lower net interest income as a result of lower interest rates. Noninterest income was flat as higher asset-based fees were offset by lower deferred compensation plan investment results (largely offset by lower deferred compensation plan expense)

▪In second quarter 2020, we entered into arrangements to transition our economic hedges of our deferred compensation plan liabilities from equity securities to derivative instruments. As a result of this transition, changes in the fair value of derivatives used to economically hedge the deferred compensation plan are reported in personnel expense along with deferred compensation plan expense and, therefore, revenue will no longer be impacted by changes in deferred compensation valuations

◦Noninterest expense decreased 17%, primarily due to lower operating losses and lower deferred compensation plan expense. Additionally, fourth quarter 2019 included $158 million of software impairment expense

◦Total client assets increased 6% to a record $2.0 trillion primarily driven by higher market valuations

Corporate includes corporate treasury and staff functions, net of allocations (including funds transfer pricing, capital, liquidity and certain expenses), in support of the reportable operating segments, as well as our investment portfolio and affiliated venture capital and private equity partnerships. Corporate also includes certain lines of business that management has determined are no longer consistent with the long-term strategic goals of the Company. In addition, Corporate includes results for previously divested businesses.

Selected Financial Information


		Quarter ended				Dec 31, 2020 % Change from
		Dec 31, 2020		Sep 30, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019
Earnings (in millions)
	Net interest income	$	(273)	(308)	349	(11)	%	NM
	Noninterest income	1,248		1,477	1,024	(16)		22
	Total revenue	975		1,169	1,373	(17)		(29)
	Provision for credit losses	(781)		(79)	53	889		NM
	Noninterest expense	1,817		1,122	887	62		105

	Net income (loss)	$	(234)	(567)	163	(59)		NM

NM – Not meaningful

Fourth Quarter 2020 vs. Fourth Quarter 2019

◦Revenue decreased 29%

▪Net interest income was down primarily due to the impact of lower interest rates

▪Noninterest income increased 22% driven by higher net gains on equity and debt securities. This increase was partially offset by a $362 million gain on the sale of our commercial real estate brokerage business in fourth quarter 2019

◦Noninterest expense increased predominantly due to $781 million of restructuring charges

◦Provision for credit losses decreased $834 million predominantly due to the announced sale of our student loan portfolio

The Company will host a live conference call on Friday, January 15, at 7:00 a.m. PT (10:00 a.m. ET). You may listen to the call by dialing 866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and

https://engage.vevent.com/rt/wells_fargo_ao/index.jsp?seid=527.

A replay of the conference call will be available beginning at approximately 11:00 a.m. PT (2:00 p.m. ET) on Friday,

January 15 through Friday, January 29. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID: 6849835. The replay will also be available online at

https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and

https://engage.vevent.com/rt/wells_fargo_ao/index.jsp?seid=527.

Forward-Looking Statements

This document contains forward-looking statements. In addition, we may make forward-looking statements in our other documents filed or furnished with the Securities and Exchange Commission, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can” and similar references to future periods. In particular, forward-looking statements include, but are not limited to, statements we make about: (i) the future operating or financial performance of the Company, including our outlook for future growth; (ii) our noninterest expense and efficiency ratio; (iii) future credit quality and performance, including our expectations regarding future loan losses, our allowance for credit losses, and the economic scenarios considered to develop the allowance; (iv) our expectations regarding net interest income and net interest margin; (v) loan growth or the reduction or mitigation of risk in our loan portfolios; (vi) future capital or liquidity levels, ratios or targets; (vii) the performance of our mortgage business and any related exposures; (viii) the expected outcome and impact of legal, regulatory and legislative developments, as well as our expectations regarding compliance therewith; (ix) future common stock dividends, common share repurchases and other uses of capital; (x) our targeted range for return on assets, return on equity, and return on tangible common equity; (xi) expectations regarding our effective income tax rate; (xii) the outcome of contingencies, such as legal proceedings; and (xiii) the Company’s plans, objectives and strategies.

Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:

•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;

•the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions;

•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;

•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;

•developments in our mortgage banking business, including the extent of the success of our mortgage loan modification efforts, the amount of mortgage loan repurchase demands that we receive, any negative effects relating to our mortgage servicing, loan modification or foreclosure practices, and the effects of regulatory or judicial requirements or guidance impacting our mortgage banking business and any changes in industry standards;

•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 acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;

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

•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 impairments of securities held in our debt securities and equity securities portfolios;

•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;

•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 employees, and our reputation;

•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;

•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;

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

•fiscal and monetary policies of the Federal Reserve Board;

•changes to U.S. tax guidance and regulations, as well as the effect of discrete items on our effective income tax rate;

•our ability to develop and execute effective business plans and strategies; and

•the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements (including under Basel capital standards), common stock issuance requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company’s Board of Directors, and may be subject to regulatory approval or conditions.

For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov5.

Any forward-looking statement made by us speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Forward-looking Non-GAAP Financial Measures. From time to time management may discuss forward-looking non-GAAP financial measures, such as forward-looking estimates or targets for return on average tangible common equity. We are unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because we are unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant to future results.

5 We do not control this website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website.

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle market companies in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. Wells Fargo ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health and a low-carbon economy.

Peter Gilchrist, 704-715-3213

peter.gilchrist@wellsfargo.com

Ancel Martinez, 415-222-3858

ancel.martinez@wellsfargo.com

John M. Campbell, 415-396-0523

john.m.campbell@wellsfargo.com

4Q20 Quarterly Supplement

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA



			Pages
Consolidated Results

Summary Financial Data			1


Consolidated Statement of Income			3


Consolidated Balance Sheet			4
Average Balances and Interest Rates (Taxable-Equivalent Basis)			5









Reportable Operating Segment Results
Combined Segment Results			6
Consumer Banking and Lending			8
Commercial Banking			10
Corporate and Investment Banking			12
Wealth and Investment Management			14
Corporate			15

Credit-Related Information
Consolidated Loans Outstanding – Period End			16
Net Loan Charge-offs			17
Changes in Allowance for Credit Losses for Loans			18
Allocation of the Allowance for Credit Losses for Loans			19
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)			20


Commercial and Industrial Loans and Lease Financing by Industry			21
Commercial Real Estate Loans by Property Type			22

Equity
Tangible Common Equity			23
Risk-Based Capital Ratios Under Basel III – Standardized Approach			25
Risk-Based Capital Ratios Under Basel III – Advanced Approach			26




Other
Deferred Compensation and Related Hedges			27

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA


	Quarter ended							Dec 31, 2020 % Change from			Year ended
(in millions, except per share amounts)	Dec 31, 2020			Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019	Dec 31, 2020			Dec 31, 2019	% Change
Selected Income Statement Data
Total revenue	$	17,925		18,862	17,836	17,717	19,860	(5)	%	(10)	$	72,340		85,063	(15)	%
Total noninterest expense	14,802			15,229	14,551	13,048	15,614	(3)		(5)	57,630			58,178	(1)
Pre-tax pre-provision profit (PTPP) (1)	3,123			3,633	3,285	4,669	4,246	(14)		(26)	14,710			26,885	(45)
Provision for credit losses	(179)			769	9,534	4,005	644	NM		NM	14,129			2,687	426
Wells Fargo net income (loss)	2,992			2,035	(2,379)	653	2,873	47		4	3,301			19,549	(83)
Wells Fargo net income (loss) applicable to common stock	2,642			1,720	(2,694)	42	2,546	54		4	1,710			17,938	(90)

Common Share Data
Diluted earnings (loss) per common share	0.64			0.42	(0.66)	0.01	0.60	52		7	0.41			4.05	(90)
Dividends declared per common share	0.10			0.10	0.51	0.51	0.51	—		(80)	1.22			1.92	(36)
Common shares outstanding	4,144.0			4,132.5	4,119.6	4,096.4	4,134.4	—		—








Average common shares outstanding	4,137.6			4,123.8	4,105.5	4,104.8	4,197.1	—		(1)	4,118.0			4,393.1	(6)
Diluted average common shares outstanding (2)	4,151.3			4,132.2	4,105.5	4,135.3	4,234.6	—		(2)	4,134.2			4,425.4	(7)
Book value per common share (3)	$	39.76		38.99	38.67	39.71	40.31	2		(1)
Tangible book value per common share (3)(4)	33.04			32.23	31.88	32.90	33.50	3		(1)





Selected Equity Data (period-end)
Total equity	185,920			182,032	180,122	183,330	187,984	2		(1)
Common stockholders' equity	164,778			161,109	159,322	162,654	166,669	2		(1)
Tangible common equity (4)	136,935			133,179	131,329	134,787	138,506	3		(1)

Performance Ratios
Return on average assets (ROA)(5)	0.62		%	0.42	(0.49)	0.13	0.59				0.17		%	1.02
Return on average equity (ROE)(6)	6.4			4.2	(6.6)	0.1	5.9				1.0			10.2
Return on average tangible common equity (ROTCE)(4)	7.7			5.1	(8.0)	0.1	7.1				1.3			12.2
Efficiency ratio (7)	83			81	82	74	79				80			68
Net interest margin on a taxable-equivalent basis	2.13			2.13	2.25	2.58	2.53				2.27			2.73

NM – Not meaningful

(1)Pre-tax pre-provision profit (PTPP) is total revenue less total noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.

(2)For second quarter 2020, diluted average common shares outstanding equaled average common shares outstanding because our securities convertible into common shares had an anti-dilutive effect.

(3)Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.

(4)Tangible common equity, tangible book value per common share, and return on average tangible common equity are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on pages 23 and 24.

(5)Represents Wells Fargo net income (loss) divided by average assets.

(6)Represents Wells Fargo net income (loss) applicable to common stock divided by average common stockholders’ equity.

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

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA (continued)


	Quarter ended							Dec 31, 2020 % Change from			Year ended
($ in millions, unless otherwise noted)	Dec 31, 2020			Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019	Dec 31, 2020		Dec 31, 2019	% Change
Selected Balance Sheet Data (average)
Loans	$	899,704		931,708	971,266	965,046	956,536	(3)	%	(6)	$	941,788	950,956	(1)	%
Assets	1,926,872			1,947,672	1,948,939	1,950,659	1,941,843	(1)		(1)	1,943,501		1,913,444	2
Deposits	1,380,100			1,399,028	1,386,656	1,337,963	1,321,913	(1)		4	1,376,011		1,286,261	7

Selected Balance Sheet Data (period-end)
Debt securities	501,207			476,421	472,580	501,563	497,125	5		1
Loans	887,637			920,082	935,155	1,009,843	962,265	(4)		(8)
Allowance for loan losses	18,516			19,463	18,926	11,263	9,551	(5)		94
Equity securities	62,260			51,169	52,494	54,047	68,241	22		(9)
Assets	1,955,163			1,922,220	1,968,766	1,981,349	1,927,555	2		1
Deposits	1,404,381			1,383,215	1,410,711	1,376,532	1,322,626	2		6

Headcount (#)	268,531			274,931	276,013	272,267	271,924	(2)		(1)

Capital and other metrics (1)
Risk-based capital ratios and components (2):
Standardized Approach:
CET1	11.6		%	11.4	11.0	10.7	11.1
Tier 1 capital	13.3			13.1	12.6	12.2	12.8
Total capital	16.5			16.3	15.9	15.2	15.8
Risk-weighted assets (RWAs) (in billions)	$	1,192.0		1,185.6	1,213.1	1,262.8	1,245.9	1		(4)

Advanced Approach:
CET1	11.9		%	11.5	11.1	11.4	11.9
Tier 1 capital	13.7			13.2	12.8	13.1	13.6
Total capital	16.1			15.7	15.3	15.6	16.2
Risk-weighted assets (RWAs) (in billions) (3)	$	1,158.1		1,172.0	1,195.4	1,181.3	1,165.1	(1)		(1)

Tier 1 leverage ratio	8.3		%	8.1	8.0	8.0	8.3
Liquidity Coverage Ratio (LCR)	133			134	129	121	120
Supplementary Leverage Ratio (SLR)	8.1			7.8	7.5	6.8	7.1
Total Loss Absorbing Capacity (TLAC)	25.8			25.8	25.3	23.3	23.3

(1)Ratios and metrics for December 31, 2020, are preliminary estimates.

(2)See tables on pages 25 and 26 for more information on Common Equity Tier 1 (CET1), tier 1 capital, and total capital. Beginning January 1, 2018, the requirements for calculating CET1 and tier 1 capital, along with RWAs became fully phased-in. Accordingly, the information presented reflects fully phased-in CET1, tier 1 capital, and RWAs, but reflects total capital still in accordance with Transition Requirements.

(3)Amount for December 31, 2019, has been revised as a result of a decrease in RWAs under the Advanced Approach due to the correction of duplicated operational loss amounts.

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME


	Quarter ended						Dec 31, 2020 % Change from			Year ended
(in millions, except per share amounts)	Dec 31, 2020		Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019	Dec 31, 2020		Dec 31, 2019	% Change







Interest income	$	10,470	10,800	11,801	14,727	15,595	(3)	%	(33)	$	47,798	66,083	(28)	%





Interest expense	1,195		1,432	1,921	3,415	4,395	(17)		(73)	7,963		18,852	(58)
Net interest income	9,275		9,368	9,880	11,312	11,200	(1)		(17)	39,835		47,231	(16)
Noninterest income
Deposit-related fees	1,333		1,299	1,142	1,447	1,530	3		(13)	5,221		5,819	(10)
Lending-related fees	356		352	323	350	358	1		(1)	1,381		1,474	(6)
Brokerage fees	2,440		2,336	2,117	2,482	2,380	4		3	9,375		9,237	1
Trust and investment management fees	747		737	687	701	728	1		3	2,872		3,038	(5)
Investment banking fees	486		441	547	391	464	10		5	1,865		1,797	4
Card fees	943		912	797	892	1,020	3		(8)	3,544		4,016	(12)
Mortgage banking	1,207		1,590	317	379	783	(24)		54	3,493		2,715	29
Net gains (losses) from trading activities	(60)		361	807	64	131	NM		NM	1,172		993	18
Net gains (losses) on debt securities	160		264	212	237	(8)	(39)		NM	873		140	524
Net gains (losses) from equity securities	884		649	533	(1,401)	451	36		96	665		2,843	(77)
Lease income	224		333	335	353	344	(33)		(35)	1,245		1,614	(23)
Other	(70)		220	139	510	479	NM		NM	799		4,146	(81)
Total noninterest income	8,650		9,494	7,956	6,405	8,660	(9)		—	32,505		37,832	(14)
Total revenue	17,925		18,862	17,836	17,717	19,860	(5)		(10)	72,340		85,063	(15)



Provision for credit losses	(179)		769	9,534	4,005	644	NM		NM	14,129		2,687	426
Noninterest expense
Personnel	8,948		8,624	8,916	8,323	8,819	4		1	34,811		35,128	(1)
Technology, telecommunications and equipment	838		791	672	798	936	6		(10)	3,099		3,276	(5)
Occupancy	826		851	871	715	749	(3)		10	3,263		2,945	11
Operating losses	621		1,219	1,219	464	1,916	(49)		(68)	3,523		4,321	(18)
Professional and outside services	1,664		1,760	1,676	1,606	1,789	(5)		(7)	6,706		6,745	(1)
Leases (1)	227		291	244	260	286	(22)		(21)	1,022		1,155	(12)
Advertising and promotion	138		144	137	181	244	(4)		(43)	600		1,076	(44)
Restructuring charges	781		718	—	—	—	9		NM	1,499		—	NM
Other	759		831	816	701	875	(9)		(13)	3,107		3,532	(12)
Total noninterest expense	14,802		15,229	14,551	13,048	15,614	(3)		(5)	57,630		58,178	(1)
Income (loss) before income tax expense (benefit)	3,302		2,864	(6,249)	664	3,602	15		(8)	581		24,198	(98)
Income tax expense (benefit)	108		645	(3,917)	159	678	(83)		(84)	(3,005)		4,157	NM
Net income (loss) before noncontrolling interests	3,194		2,219	(2,332)	505	2,924	44		9	3,586		20,041	(82)
Less: Net income (loss) from noncontrolling interests	202		184	47	(148)	51	10		296	285		492	(42)
Wells Fargo net income (loss)	$	2,992	2,035	(2,379)	653	2,873	47		4	$	3,301	19,549	(83)
Less: Preferred stock dividends and other	350		315	315	611	327	11		7	1,591		1,611	(1)
Wells Fargo net income (loss) applicable to common stock	$	2,642	1,720	(2,694)	42	2,546	54		4	$	1,710	17,938	(90)
Per share information
Earnings (loss) per common share	$	0.64	0.42	(0.66)	0.01	0.61	52		5	$	0.42	4.08	(90)
Diluted earnings (loss) per common share	0.64		0.42	(0.66)	0.01	0.60	52		7	0.41		4.05	(90)

NM – Not meaningful

(1)Represents expenses for assets we lease to customers.

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET


							Dec 31, 2020 % Change from
(in millions)	Dec 31, 2020		Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019
Assets
Cash and due from banks	$	28,236	25,535	24,704	22,738	21,757	11	%	30
Interest-earning deposits with banks	236,376		221,235	237,799	128,071	119,493	7		98
Total cash, cash equivalents, and restricted cash	264,612		246,770	262,503	150,809	141,250	7		87
Federal funds sold and securities purchased under resale agreements	65,672		69,304	79,289	86,465	102,140	(5)		(36)
Debt securities:
Trading, at fair value	75,095		73,253	74,679	80,425	79,733	3		(6)
Available-for-sale, at fair value	220,392		220,573	228,899	251,229	263,459	—		(16)
Held-to-maturity, at amortized cost	205,720		182,595	169,002	169,909	153,933	13		34


Loans held for sale (1)	36,384		25,004	33,694	23,678	24,319	46		50
Loans	887,637		920,082	935,155	1,009,843	962,265	(4)		(8)
Allowance for loan losses	(18,516)		(19,463)	(18,926)	(11,263)	(9,551)	(5)		94
Net loans	869,121		900,619	916,229	998,580	952,714	(3)		(9)
Mortgage servicing rights (1)	7,437		7,680	8,180	9,532	12,947	(3)		(43)


Premises and equipment, net	8,895		8,977	9,025	9,108	9,309	(1)		(4)
Goodwill	26,392		26,387	26,385	26,381	26,390	—		—
Derivative assets	25,846		23,715	22,776	25,023	14,203	9		82
Equity securities	62,260		51,169	52,494	54,047	68,241	22		(9)
Other assets	87,337		86,174	85,611	96,163	78,917	1		11
Total assets	$	1,955,163	1,922,220	1,968,766	1,981,349	1,927,555	2		1
Liabilities
Noninterest-bearing deposits	$	467,068	447,011	432,857	379,678	344,496	4		36
Interest-bearing deposits	937,313		936,204	977,854	996,854	978,130	—		(4)
Total deposits	1,404,381		1,383,215	1,410,711	1,376,532	1,322,626	2		6
Short-term borrowings	58,999		55,224	60,485	92,289	104,512	7		(44)
Derivative liabilities	16,509		13,767	11,368	15,618	9,079	20		82
Accrued expenses and other liabilities	76,404		72,271	75,159	76,238	75,163	6		2
Long-term debt	212,950		215,711	230,921	237,342	228,191	(1)		(7)
Total liabilities	1,769,243		1,740,188	1,788,644	1,798,019	1,739,571	2		2
Equity
Wells Fargo stockholders’ equity:
Preferred stock	21,136		21,098	21,098	21,347	21,549	—		(2)
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares	9,136		9,136	9,136	9,136	9,136	—		—
Additional paid-in capital	60,197		60,035	59,923	59,849	61,049	—		(1)
Retained earnings	162,890		160,913	159,952	165,308	166,697	1		(2)
Cumulative other comprehensive income (loss)	194		(750)	(798)	(1,564)	(1,311)	NM		NM
Treasury stock (2)	(67,791)		(68,384)	(69,050)	(70,215)	(68,831)	(1)		(2)
Unearned ESOP shares	(875)		(875)	(875)	(1,143)	(1,143)	—		(23)
Total Wells Fargo stockholders’ equity	184,887		181,173	179,386	182,718	187,146	2		(1)
Noncontrolling interests	1,033		859	736	612	838	20		23
Total equity	185,920		182,032	180,122	183,330	187,984	2		(1)
Total liabilities and equity	$	1,955,163	1,922,220	1,968,766	1,981,349	1,927,555	2		1

NM – Not meaningful

(1)In fourth quarter 2020, loans held for sale and mortgage loans held for sale were combined into a single line item, and mortgage servicing rights measured at fair value and at amortized cost were combined into a single line item. Prior period balances have been revised to conform with the current period presentation.

(2)Number of shares of treasury stock were 1,337,799,931, 1,349,294,592, 1,362,252,882, 1,385,401,170, and 1,347,385,537 at December 31, September 30, June 30 and March 31, 2020, and December 31, 2019, respectively.

Wells Fargo & Company and Subsidiaries

AVERAGE BALANCES AND INTEREST RATES (TAXABLE-EQUIVALENT BASIS)(1)


	Quarter ended					Dec 31, 2020 % Change from		Year ended		% Change
($ in millions)	Dec 31, 2020			Sep 30, 2020	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019				Sep 30, 2020		Dec 31, 2019				Dec 31, 2020		Dec 31, 2019
Average Balances

Assets
Interest-earning deposits with banks	$	222,010		216,958	176,327		129,522		127,287		2	%		74		$	186,386			135,741		37	%
Federal funds sold and securities purchased under resale agreements	67,023			80,431	76,384		107,555		109,201		(17)			(39)		82,798				99,286		(17)
Debt securities	500,616			481,961	495,297		511,512		518,496		4			(3)		497,313				505,454		(2)
Loans held for sale (2)	29,436			31,023	27,610		21,846		25,350		(5)			16		27,493				21,516		28
Loans:
Commercial loans	476,468			497,744	545,318		520,514		512,590		(4)			(7)		509,886				511,460		—
Consumer loans	423,236			433,964	425,948		444,532		443,946		(2)			(5)		431,902				439,496		(2)
Total loans	899,704			931,708	971,266		965,046		956,536		(3)			(6)		941,788				950,956		(1)
Equity securities	25,744			25,185	27,417		37,532		38,278		2			(33)		28,950				35,930		(19)
Other	7,896			6,974	7,715		7,431		6,478		13			22		7,505				5,579		35
Total interest-earning assets	$	1,752,429		1,774,240	1,782,016		1,780,444		1,781,626		(1)			(2)		$	1,772,233			1,754,462		1
Total noninterest-earning assets	174,443			173,432	166,923		170,215		160,217		1			9		171,268				158,982		8
Total assets	$	1,926,872		1,947,672	1,948,939		1,950,659		1,941,843		(1)			(1)		$	1,943,501			1,913,444		2
Liabilities
Interest-bearing deposits	$	925,729		959,270	978,194		990,636		970,175		(3)			(5)		$	963,342			942,150		2
Short-term borrowings	57,304			57,292	63,535		102,977		115,949		—			(51)		70,206				115,337		(39)
Long-term debt	214,223			222,862	232,395		229,002		230,430		(4)			(7)		224,587				232,491		(3)
Other liabilities	25,949			27,679	29,947		30,199		27,279		(6)			(5)		28,435				25,771		10
Total interest-bearing liabilities	$	1,223,205		1,267,103	1,304,071		1,352,814		1,343,833		(3)			(9)		$	1,286,570			1,315,749		(2)
Noninterest-bearing demand deposits	454,371			439,758	408,462		347,327		351,738		3			29		412,669				344,111		20
Other noninterest-bearing liabilities	63,548			57,961	52,298		62,348		53,879		10			18		59,048				55,963		6
Total liabilities	$	1,741,124		1,764,822	1,764,831		1,762,489		1,749,450		(1)			—		$	1,758,287			1,715,823		2
Total equity	185,748			182,850	184,108		188,170		192,393		2			(3)		185,214				197,621		(6)
Total liabilities and equity	$	1,926,872		1,947,672	1,948,939		1,950,659		1,941,843		(1)			(1)		$	1,943,501			1,913,444		2

Average Interest Rates

Interest-earning assets
Interest-earning deposits with banks	0.10		%	0.11	0.12		1.18		1.63							0.29		%		2.12
Federal funds sold and securities purchased under resale agreements	0.05			0.02	0.01		1.42		1.72							0.47				2.18
Debt securities	1.96			2.10	2.46		2.81		2.84							2.34				3.06
Loans held for sale (2)	3.56			3.07	3.45		3.82		3.91							3.45				4.14
Loans:
Commercial loans	2.67			2.60	2.76		3.65		3.90							2.93				4.27
Consumer loans	4.20			4.33	4.45		4.83		4.92							4.46				5.11
Total loans	3.39			3.41	3.50		4.20		4.37							3.63				4.65
Equity securities	2.04			1.61	1.70		2.22		2.81							1.92				2.69
Other	—			(0.02)	(0.02)		0.77		1.36							0.18				1.62
Total interest-earning assets	2.41			2.45	2.68		3.35		3.51							2.72				3.80
Interest-bearing liabilities
Interest-bearing deposits	0.07			0.13	0.24		0.71		0.85							0.29				0.92
Short-term borrowings	(0.08)			(0.08)	(0.10)		1.14		1.50							0.36				2.01
Long-term debt	1.78			1.86	2.13		2.17		3.02							1.99				3.16
Other liabilities	1.38			1.33	1.53		1.90		2.04							1.54				2.13
Total interest-bearing liabilities	0.39			0.45	0.59		1.01		1.30							0.62				1.43

Interest rate spread on a taxable-equivalent basis (3)	2.02			2.00	2.09		2.34		2.21							2.10				2.37
Net interest margin on a taxable-equivalent basis (3)	2.13			2.13	2.25		2.58		2.53							2.27				2.73

(1)The average balance amounts represent amortized costs. The interest rates are based on interest income or expense amounts for the period and are annualized, if applicable. Interest rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(2)In fourth quarter 2020, loans held for sale and mortgage loans held for sale were combined into a single line item. Prior period balances have been revised to conform with the current period presentation.

(3)Includes taxable-equivalent adjustments of $107 million, $109 million, $119 million, $140 million, and $143 million for the quarters ended December 31, September 30, June 30 and March 31, 2020, and December 31, 2019, respectively, and $475 million and $611 million for the years ended December 31, 2020 and 2019, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 21% for the periods presented.

Wells Fargo & Company and Subsidiaries

COMBINED SEGMENT RESULTS (1)



						Quarter ended December 31, 2020
(in millions)	Consumer Banking and Lending		Commercial Banking	Corporate and Investment Banking	Wealth and Investment Management	Corporate (2)	Reconciling Items (3)	Consolidated Company
Net interest income	$	5,741	1,390	1,809	715	(273)	(107)	9,275
Noninterest income	2,872		998	1,297	3,074	1,248	(839)	8,650
Total revenue	8,613		2,388	3,106	3,789	975	(946)	17,925
Provision for credit losses	351		69	186	(4)	(781)	—	(179)
Noninterest expense	6,441		1,690	1,798	3,056	1,817	—	14,802
Income (loss) before income tax expense (benefit)	1,821		629	1,122	737	(61)	(946)	3,302
Income tax expense (benefit)	457		154	282	183	(22)	(946)	108
Net income (loss) before noncontrolling interests	1,364		475	840	554	(39)	—	3,194
Less: Net income (loss) from noncontrolling interests	—		2	(1)	6	195	—	202
Net income (loss)	$	1,364	473	841	548	(234)	—	2,992

						Quarter ended September 30, 2020
Net interest income	$	5,918	1,437	1,712	718	(308)	(109)	9,368
Noninterest income	3,228		923	1,575	2,915	1,477	(624)	9,494
Total revenue	9,146		2,360	3,287	3,633	1,169	(733)	18,862
Provision for credit losses	640		339	(121)	(10)	(79)	—	769
Noninterest expense	7,345		1,762	1,991	3,009	1,122	—	15,229
Income (loss) before income tax expense (benefit)	1,161		259	1,417	634	126	(733)	2,864
Income tax expense (benefit)	290		63	355	157	513	(733)	645
Net income (loss) before noncontrolling interests	871		196	1,062	477	(387)	—	2,219
Less: Net income from noncontrolling interests	—		1	—	3	180	—	184
Net income (loss)	$	871	195	1,062	474	(567)	—	2,035

						Quarter ended December 31, 2019
Net interest income	$	6,233	1,877	1,999	885	349	(143)	11,200
Noninterest income	2,849		1,018	1,330	3,075	1,024	(636)	8,660
Total revenue	9,082		2,895	3,329	3,960	1,373	(779)	19,860
Provision for credit losses	485		30	77	(1)	53	—	644
Noninterest expense	7,421		1,812	1,821	3,673	887	—	15,614
Income (loss) before income tax expense (benefit)	1,176		1,053	1,431	288	433	(779)	3,602
Income tax expense (benefit)	544		260	358	72	223	(779)	678
Net income before noncontrolling interests	632		793	1,073	216	210	—	2,924
Less: Net income from noncontrolling interests	—		1	—	3	47	—	51
Net income	$	632	792	1,073	213	163	—	2,873

(1)The management reporting process is based on U.S. GAAP with specific adjustments, such as for funds transfer pricing for asset/liability management, for shared revenues and expenses, and tax-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources. We define our operating segments by product type and customer segment.

(2)All other business activities that are not included in the reportable operating segments have been included in Corporate. Corporate includes corporate treasury and staff functions, net of allocations (including funds transfer pricing, capital, liquidity and certain expenses), in support of the reportable operating segments, as well as our investment portfolio and affiliated venture capital and private equity partnerships. Corporate also includes certain lines of business that management has determined are no longer consistent with the long-term strategic goals of the Company. In addition, Corporate includes results for previously divested businesses.

(3)Taxable-equivalent adjustments related to tax-exempt income on certain loans and debt securities are included in net interest income, while taxable-equivalent adjustments related to income tax credits for low-income housing and renewable energy investments are included in noninterest income, in each case with corresponding impacts to income tax expense (benefit). Adjustments are included in Corporate, Commercial Banking, and Corporate and Investment Banking and are eliminated to reconcile to the Company’s consolidated financial results.

Wells Fargo & Company and Subsidiaries

COMBINED SEGMENT RESULTS (continued) (1)



						Year ended December 31, 2020
(in millions)	Consumer Banking and Lending		Commercial Banking	Corporate and Investment Banking	Wealth and Investment Management	Corporate (2)	Reconciling Items (3)	Consolidated Company
Net interest income	$	23,378	6,191	7,501	2,993	247	(475)	39,835
Noninterest income	10,638		3,547	6,319	11,519	3,216	(2,734)	32,505
Total revenue	34,016		9,738	13,820	14,512	3,463	(3,209)	72,340
Provision for credit losses	5,662		3,744	4,946	249	(472)	—	14,129
Noninterest expense	26,976		6,908	7,703	12,051	3,992	—	57,630
Income (loss) before income tax expense (benefit)	1,378		(914)	1,171	2,212	(57)	(3,209)	581
Income tax expense (benefit)	302		(238)	330	552	(742)	(3,209)	(3,005)
Net income (loss) before noncontrolling interests	1,076		(676)	841	1,660	685	—	3,586
Less: Net income (loss) from noncontrolling interests	—		5	(1)	4	277	—	285
Net income (loss)	$	1,076	(681)	842	1,656	408	—	3,301

						Year ended December 31, 2019
Net interest income	$	25,786	8,184	8,005	3,917	1,950	(611)	47,231
Noninterest income	12,105		4,154	6,223	11,815	5,859	(2,324)	37,832
Total revenue	37,891		12,338	14,228	15,732	7,809	(2,935)	85,063
Provision for credit losses	2,184		190	173	2	138	—	2,687
Noninterest expense	26,998		7,068	7,432	13,363	3,317	—	58,178
Income (loss) before income tax expense (benefit)	8,709		5,080	6,623	2,367	4,354	(2,935)	24,198
Income tax expense (benefit)	2,814		1,266	1,658	590	764	(2,935)	4,157
Net income before noncontrolling interests	5,895		3,814	4,965	1,777	3,590	—	20,041
Less: Net income (loss) from noncontrolling interests	—		6	(1)	9	478	—	492
Net income	$	5,895	3,808	4,966	1,768	3,112	—	19,549


	Quarter ended							Dec 31, 2020 % Change from			Year ended
($ in millions, unless otherwise noted)	Dec 31, 2020			Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019	Dec 31, 2020			Dec 31, 2019	% Change
Selected Metrics
Consumer Banking and Lending:
Return on allocated capital (1)	10.7		%	6.6	(15.5)	4.6	4.7				1.6		%	12.1
Efficiency ratio (2)	75			80	91	72	82				79			71
Headcount (#)	125,034			131,516	133,876	133,394	134,881	(5)	%	(7)	125,034			134,881	(7)	%
Retail bank branches (#)	5,032			5,229	5,300	5,329	5,352	(4)		(6)	5,032			5,352	(6)
Digital active customers (# in millions) (3)	32.0			32.0	31.1	31.1	30.3	—		6	32.0			30.3	6
Mobile active customers (# in millions) (3)	26.0			25.9	25.2	24.9	24.4	—		7	26.0			24.4	7

Consumer and Small Business Banking:
Deposit spread (4)	1.7		%	1.8	1.8	2.0	2.2				1.8		%	2.4
Debit card purchase volume ($ in billions) (5)	$	105.3		102.9	93.1	90.6	95.2	2		11	$	391.9		367.6	7
Debit card purchase transactions (# in millions) (5)	2,297			2,273	2,027	2,195	2,344	1		(2)	8,792			9,189	(4)

Home Lending:
Mortgage banking fees:
Net servicing income	$	(82)		331	(666)	257	12	NM		NM	$	(160)		454	NM
Net gains on mortgage loan origination/sales activities	1,164			1,213	922	85	661	(4)		76	3,384			1,860	82
Total mortgage banking fees	1,082			1,544	256	342	673	(30)		61	3,224			2,314	39

Originations ($ in billions):
Retail	32.3			32.8	30.5	23.1	27.5	(2)		17	118.7			96.4	23
Correspondent	21.6			28.8	28.7	24.9	32.3	(25)		(33)	104.0			107.6	(3)
Total originations	$	53.9		61.6	59.2	48.0	59.8	(13)		(10)	$	222.7		204.0	9

% of originations held for sale (HFS)	75.2		%	78.1	71.8	69.6	69.6				73.9		%	66.1
Third party mortgage loans serviced (period-end) ($ in billions) (6)	$	856.7		917.6	989.5	1,037.5	1,063.4	(7)		(19)	$	856.7		1,063.4	(19)
Mortgage servicing rights (MSR) carrying value (period-end)	6,125			6,355	6,819	8,126	11,517	(4)		(47)	6,125			11,517	(47)
Ratio of MSR carrying value (period-end) to third party mortgage loans serviced (period-end) (6)	0.71		%	0.69	0.69	0.78	1.08				0.71		%	1.08
Home lending loans 30+ days or more delinquency rate (7)(8)	0.64			0.56	0.54	0.71	0.64				0.64			0.64

Credit Card:
Point of sale (POS) volume ($ in billions)	$	22.9		21.3	17.5	19.9	23.1	8		(1)	$	81.6		88.2	(7)
New accounts (# in thousands) (9)	240			212	255	315	366	13		(34)	1,022			1,840	(44)
Credit card loans 30+ days or more delinquency rate (8)	2.17		%	1.76	2.10	2.60	2.63				2.17		%	2.63

Auto:
Auto originations ($ in billions)	$	5.3		5.4	5.6	6.5	6.8	(2)		(22)	$	22.8		25.4	(10)
Auto loans 30+ days or more delinquency rate (8)	1.77		%	1.67	1.70	2.31	2.56				1.77		%	2.56

Personal Lending:
New funded balances	$	294		323	315	667	708	(9)		(58)	$	1,599		2,829	(43)


	Quarter ended							Dec 31, 2020 % Change from			Year ended
($ in millions)	Dec 31, 2020			Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019	Dec 31, 2020			Dec 31, 2019	% Change
Selected Balance Sheet Data (average)
Loans:
Commercial and industrial	$	125,524		134,531	158,982	154,308	154,525	(7)	%	(19)	$	143,263		157,829	(9)	%
Commercial real estate	50,441			52,017	53,157	53,288	53,727	(3)		(6)	52,220			54,416	(4)
Lease financing and other	14,937			15,345	16,284	17,261	17,211	(3)		(13)	15,953			17,109	(7)
Total loans	$	190,902		201,893	228,423	224,857	225,463	(5)		(15)	$	211,436		229,354	(8)

Loans by Line of Business:
Middle Market Banking	$	102,692		110,289	122,319	116,232	116,098	(7)		(12)	$	112,848		119,717	(6)
Asset-Based Lending and Leasing	87,092			90,530	105,061	107,437	108,154	(4)		(19)	97,482			108,422	(10)
Other	1,118			1,074	1,043	1,188	1,211	4		(8)	1,106			1,215	(9)
Total loans	$	190,902		201,893	228,423	224,857	225,463	(5)		(15)	$	211,436		229,354	(8)

Total deposits	$	203,590		197,976	206,495	193,454	192,334	3		6	$	200,381		186,942	7
Allocated capital	19,500			19,500	19,500	19,500	20,500	—		(5)	19,500			20,500	(5)

Selected Balance Sheet Data (period-end)
Loans:
Commercial and industrial	$	124,253		128,270	142,315	170,893	153,601	(3)		(19)	$	124,253		153,601	(19)
Commercial real estate	49,903			51,297	52,802	53,531	53,526	(3)		(7)	49,903			53,526	(7)
Lease financing and other	14,821			15,180	15,662	17,179	17,654	(2)		(16)	14,821			17,654	(16)
Total loans	$	188,977		194,747	210,779	241,603	224,781	(3)		(16)	$	188,977		224,781	(16)

Loans by Line of Business:
Middle Market Banking	$	101,193		105,851	115,105	125,192	115,187	(4)		(12)	$	101,193		115,187	(12)
Asset-Based Lending and Leasing	86,811			88,087	94,976	115,371	108,470	(1)		(20)	86,811			108,470	(20)
Other	973			809	698	1,040	1,124	20		(13)	973			1,124	(13)
Total loans	$	188,977		194,747	210,779	241,603	224,781	(3)		(16)	$	188,977		224,781	(16)

Total deposits	$	208,284		198,556	203,777	209,495	194,469	5		7	$	208,284		194,469	7

Selected Metrics
Return on allocated capital	8.6		%	3.0	(25.2)	(4.7)	14.3				(4.5)		%	17.5
Efficiency ratio	71			75	71	68	63				71			57
Headcount (#)	22,410			24,091	24,107	24,036	23,871	(7)		(6)	22,410			23,871	(6)


	Quarter ended							Dec 31, 2020 % Change from			Year ended
($ in millions)	Dec 31, 2020			Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019	Dec 31, 2020			Dec 31, 2019	% Change
Selected Balance Sheet Data (average)
Loans:
Commercial and industrial	$	155,669		165,445	190,861	178,254	171,078	(6)	%	(9)	$	172,492		168,506	2	%
Commercial real estate	84,175			84,408	82,726	79,988	79,776	—		6	82,832			79,804	4
Total loans	$	239,844		249,853	273,587	258,242	250,854	(4)		(4)	$	255,324		248,310	3

Loans by Line of Business:
Banking	$	82,413		88,936	105,983	96,844	92,796	(7)		(11)	$	93,501		90,749	3
Commercial Real Estate	107,838			109,482	110,594	105,194	103,714	(2)		4	108,279			104,261	4
Markets	49,593			51,435	57,010	56,204	54,344	(4)		(9)	53,544			53,300	—
Total loans	$	239,844		249,853	273,587	258,242	250,854	(4)		(4)	$	255,324		248,310	3
Trading-related assets:
Trading account securities	$	108,972		100,193	106,836	123,327	127,677	9		(15)	$	109,803		115,937	(5)
Reverse repurchase agreements/securities borrowed	57,835			68,818	70,335	89,132	93,047	(16)		(38)	71,485			89,190	(20)
Derivative assets	23,604			23,640	22,380	18,284	14,014	—		68	21,986			12,762	72
Total trading-related assets	$	190,411		192,651	199,551	230,743	234,738	(1)		(19)	$	203,274		217,889	(7)
Total assets	496,315			503,966	535,655	551,987	542,910	(2)		(9)	521,861			520,973	—
Total deposits	205,797			226,129	239,637	266,167	258,781	(9)		(20)	234,332			238,651	(2)
Allocated capital	34,000			34,000	34,000	34,000	31,500	—		8	34,000			31,500	8

Selected Balance Sheet Data (period-end)
Loans:
Commercial and industrial	$	160,000		157,193	171,859	206,620	173,985	2		(8)	$	160,000		173,985	(8)
Commercial real estate	84,456			83,920	83,715	81,152	79,451	1		6	84,456			79,451	6
Total loans	$	244,456		241,113	255,574	287,772	253,436	1		(4)	$	244,456		253,436	(4)

Loans by Line of Business:
Banking	$	84,640		83,128	91,093	118,682	93,117	2		(9)	$	84,640		93,117	(9)
Commercial Real Estate	107,207			108,240	109,402	109,937	103,938	(1)		3	107,207			103,938	3
Markets	52,609			49,745	55,079	59,153	56,381	6		(7)	52,609			56,381	(7)
Total loans	$	244,456		241,113	255,574	287,772	253,436	1		(4)	$	244,456		253,436	(4)
Trading-related assets:
Trading account securities	$	109,311		100,157	97,708	110,544	124,808	9		(12)	$	109,311		124,808	(12)
Reverse repurchase agreements/securities borrowed	57,248			61,027	70,949	79,560	90,077	(6)		(36)	57,248			90,077	(36)
Derivative assets	25,916			23,844	22,757	24,834	14,382	9		80	25,916			14,382	80
Total trading-related assets	$	192,475		185,028	191,414	214,938	229,267	4		(16)	$	192,475		229,267	(16)
Total assets	508,793			490,694	510,545	574,660	538,383	4		(5)	508,793			538,383	(5)
Total deposits	203,004			212,532	236,620	260,281	261,134	(4)		(22)	203,004			261,134	(22)

Selected Metrics
Return on allocated capital	8.8		%	11.4	(17.1)	2.4	12.4				1.4		%	14.7
Efficiency ratio	58			61	51	55	55				56			52

Headcount (#)	8,178			8,205	8,213	7,965	7,918	—		3	8,178			7,918	3


	Quarter ended						Dec 31, 2020 $ Change from
(in millions)	Dec 31, 2020		Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020	Dec 31, 2019
Commercial:
Commercial and industrial	$	318,805	320,913	350,116	405,020	354,125	(2,108)	(35,320)
Real estate mortgage	121,720		121,910	123,967	122,767	121,824	(190)	(104)
Real estate construction	21,805		22,519	21,694	20,812	19,939	(714)	1,866
Lease financing	16,087		16,947	17,410	19,136	19,831	(860)	(3,744)
Total commercial	478,417		482,289	513,187	567,735	515,719	(3,872)	(37,302)
Consumer:
Residential mortgage – first lien	276,674		294,990	277,945	292,920	293,847	(18,316)	(17,173)
Residential mortgage – junior lien	23,286		25,162	26,839	28,527	29,509	(1,876)	(6,223)
Credit card	36,664		36,021	36,018	38,582	41,013	643	(4,349)
Auto	48,187		48,450	48,808	48,568	47,873	(263)	314
Other consumer	24,409		33,170	32,358	33,511	34,304	(8,761)	(9,895)
Total consumer	409,220		437,793	421,968	442,108	446,546	(28,573)	(37,326)
Total loans	$	887,637	920,082	935,155	1,009,843	962,265	(32,445)	(74,628)


	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Jan 1, 2020 (1)
($ in millions)	ACL		ACL as % of loan class		ACL		ACL as % of loan class		ACL		ACL as % of loan class		ACL		ACL as % of loan class		ACL		ACL as % of loan class
By product:
Commercial:
Commercial and industrial	$	7,230	2.27	%	$	7,845	2.44	%	$	8,109	2.32	%	$	4,231	1.04	%	$	2,491	0.70	%
Real estate mortgage	3,167		2.60		2,517		2.06		2,395		1.93		848		0.69		702		0.58
Real estate construction	410		1.88		521		2.31		484		2.23		36		0.17		42		0.21
Lease financing	709		4.41		659		3.89		681		3.91		164		0.86		149		0.75
Total commercial	11,516		2.41		11,542		2.39		11,669		2.27		5,279		0.93		3,384		0.66
Consumer:
Residential mortgage - first lien	1,600		0.58		1,519		0.51		1,541		0.55		836		0.29		845		0.29
Residential mortgage - junior lien	653		2.80		710		2.82		725		2.70		125		0.44		78		0.26
Credit card	4,082		11.13		4,082		11.33		3,777		10.49		3,481		9.02		2,913		7.10
Auto	1,230		2.55		1,225		2.53		1,174		2.41		1,016		2.09		719		1.50
Other consumer	632		2.59		1,393		4.20		1,550		4.79		1,285		3.83		1,188		3.46
Total consumer	8,197		2.00		8,929		2.04		8,767		2.08		6,743		1.53		5,743		1.29
Total allowance for credit losses for loans	$	19,713	2.22	%	$	20,471	2.22	%	$	20,436	2.19	%	$	12,022	1.19	%	$	9,127	0.95	%
By segment:
Consumer Banking and Lending	$	9,593	2.64	%	9,593		2.51	%	9,329		2.53	%	6,806		1.79	%	5,863		1.52	%
Commercial Banking	4,586		2.43		4,586		2.35		4,458		2.12		2,297		0.95		1,482		0.66
Corporate and Investing Banking	5,155		2.11		5,155		2.14		5,405		2.11		2,064		0.72		997		0.39
Wealth and Investment Management	375		0.46		375		0.47		383		0.49		128		0.16		122		0.16
Corporate	4		0.04		762		3.47		861		3.92		727		3.29		663		3.03
Total allowance for credit losses for loans	$	19,713	2.22	%	20,471		2.22	%	20,436		2.19	%	12,022		1.19	%	9,127		0.95	%


	Quarter ended							Dec 31, 2020 $ Change from		Year ended Dec 31,
(in millions)	Dec 31, 2020			Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020	Dec 31, 2019	2020	2019	$ Change
Balance, beginning of period	$	20,471		20,436	12,022	10,456	10,613	35	9,858	10,456	10,707	(251)
Cumulative effect from change in accounting policies (1)	—			—	—	(1,337)	—	—	—	(1,337)	—	(1,337)
Allowance for purchased credit-deteriorated (PCD) loans (2)	—			—	—	8	—	—	—	8	-	8
Balance, beginning of quarter, adjusted	20,471			20,436	12,022	9,127	10,613	35	9,858	9,127	10,707	(1,580)
Provision for credit losses	(144)			751	9,565	3,833	644	(895)	(788)	14,005	2,687	11,318

Interest income on certain loans (3)	(36)			(41)	(38)	(38)	(35)	5	(1)	(153)	(147)	(6)






























Net loan charge-offs:
Commercial:
Commercial and industrial	(111)			(274)	(521)	(333)	(168)	163	57	(1,239)	(607)	(632)
Real estate mortgage	(162)			(56)	(67)	2	(4)	(106)	(158)	(283)	(6)	(277)
Real estate construction	—			2	1	16	—	(2)	—	19	12	7
Lease financing	(35)			(28)	(15)	(9)	(31)	(7)	(4)	(87)	(51)	(36)
Total commercial	(308)			(356)	(602)	(324)	(203)	48	(105)	(1,590)	(652)	(938)
Consumer:
Residential mortgage – first lien	3			1	(2)	3	3	2	—	5	50	(45)
Residential mortgage – junior lien	24			14	12	5	16	10	8	55	66	(11)
Credit card	(190)			(245)	(327)	(377)	(350)	55	160	(1,139)	(1,370)	231
Auto	(51)			(31)	(106)	(82)	(87)	(20)	36	(270)	(306)	36
Other consumer	(62)			(66)	(88)	(134)	(148)	4	86	(350)	(550)	200
Total consumer	(276)			(327)	(511)	(585)	(566)	51	290	(1,699)	(2,110)	411
Net loan charge-offs	(584)			(683)	(1,113)	(909)	(769)	99	185	(3,289)	(2,762)	(527)
Other	6			8	—	9	3	(2)	3	23	(29)	52
Balance, end of period	$	19,713		20,471	20,436	12,022	10,456	(758)	9,257	19,713	10,456	9,257
Components:
Allowance for loan losses	$	18,516		19,463	18,926	11,263	9,551	(947)	8,965	18,516	9,551	8,965
Allowance for unfunded credit commitments	1,197			1,008	1,510	759	905	189	292	1,197	905	292
Allowance for credit losses for loans	$	19,713		20,471	20,436	12,022	10,456	(758)	9,257	19,713	10,456	9,257
Net loan charge-offs (annualized) as a percentage of average total loans	0.26		%	0.29	0.46	0.38	0.32			0.35	0.29
Allowance for loan losses as a percentage of:
Total loans	2.09			2.12	2.02	1.12	0.99			2.09	0.99
Nonaccrual loans	212			243	249	183	179			212	179

Total net loan charge-offs (annualized)	797			716	423	308	313			563	346
Allowance for credit losses for loans as a percentage of:
Total loans	2.22			2.22	2.19	1.19	1.09			2.22	1.09
Nonaccrual loans	226			255	269	195	196			226	196


								Dec 31, 2020 % Change from
(in millions, except ratios)		Dec 31, 2020		Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019
Tangible book value per common share:
Total equity		$	185,920	182,032	180,122	183,330	187,984	2	%	(1)
Adjustments:
Preferred stock		(21,136)		(21,098)	(21,098)	(21,347)	(21,549)	—		(2)
Additional paid-in capital on preferred stock		152		159	159	140	(71)	(4)		NM
Unearned ESOP shares		875		875	875	1,143	1,143	—		(23)
Noncontrolling interests		(1,033)		(859)	(736)	(612)	(838)	20		23
Total common stockholders' equity	(A)	164,778		161,109	159,322	162,654	166,669	2		(1)
Adjustments:
Goodwill		(26,392)		(26,387)	(26,385)	(26,381)	(26,390)	—		—
Certain identifiable intangible assets (other than MSRs)		(342)		(366)	(389)	(413)	(437)	(7)		(22)
Goodwill and other intangibles on nonmarketable equity securities (included in other assets)		(1,965)		(2,019)	(2,050)	(1,894)	(2,146)	(3)		(8)
Applicable deferred taxes related to goodwill and other intangible assets (1)		856		842	831	821	810	2		6
Tangible common equity	(B)	$	136,935	133,179	131,329	134,787	138,506	3		(1)
Common shares outstanding	(C)	4,144.0		4,132.5	4,119.6	4,096.4	4,134.4	—		—
Book value per common share	(A)/(C)	$	39.76	38.99	38.67	39.71	40.31	2		(1)
Tangible book value per common share	(B)/(C)	33.04		32.23	31.88	32.90	33.50	3		(1)


		Estimated							Dec 31, 2020 % Change from
(in billions, except ratio)		Dec 31, 2020			Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2020		Dec 31, 2019
Total equity		$	185.9		182.0	180.1	183.3	188.0	2	%	(1)
Adjustments:
Preferred stock		(21.1)			(21.1)	(21.1)	(21.3)	(21.5)	—		(2)
Additional paid-in capital on preferred stock		0.2			0.2	0.2	0.1	(0.1)	—		NM
Unearned ESOP shares		0.9			0.9	0.9	1.1	1.1	—		(18)
Noncontrolling interests		(1.0)			(0.9)	(0.7)	(0.6)	(0.8)	11		25
Total common stockholders' equity		164.8			161.1	159.4	162.6	166.7	2		(1)
Adjustments:
Goodwill		(26.4)			(26.4)	(26.4)	(26.4)	(26.4)	—		—
Certain identifiable intangible assets (other than MSRs)		(0.3)			(0.4)	(0.4)	(0.4)	(0.4)	(25)		(25)
Goodwill and other intangibles on nonmarketable equity securities (included in other assets)		(2.0)			(2.0)	(2.1)	(1.9)	(2.1)	—		(5)
Applicable deferred taxes related to goodwill and other intangible assets (2)		0.9			0.8	0.8	0.8	0.8	13		13
CECL transition provision (3)		1.7			1.9	1.9	—	—	(11)		NM
Other		(0.4)			(0.2)	(0.1)	—	0.3	100		NM
Common Equity Tier 1	(A)	138.3			134.9	133.1	134.7	138.8	3		—


Preferred stock		21.1			21.1	21.1	21.3	21.5	—		(2)
Additional paid-in capital on preferred stock		(0.2)			(0.2)	(0.2)	(0.1)	0.1	—		NM
Unearned ESOP shares		(0.9)			(0.9)	(0.9)	(1.1)	(1.1)	—		(18)
Other		(0.2)			(0.2)	(0.2)	(0.5)	(0.3)	—		(33)
Total Tier 1 capital	(B)	158.2			154.7	152.9	154.3	158.9	2		—

Long-term debt and other instruments qualifying as Tier 2		24.4			25.0	25.5	25.8	26.5	(2)		(8)
Qualifying allowance for credit losses (4)		14.1			14.1	14.4	12.0	10.5	—		34
Other		(0.2)			(0.2)	(0.2)	(0.2)	(0.2)	—		—





Effect of Basel III Transition Requirements		0.1			0.1	0.1	0.1	0.5	—		(80)
Total qualifying capital (Basel III Transition Requirements)	(C)	$	196.6		193.8	192.6	192.1	196.2	1		—

Total risk-weighted assets (RWAs)	(D)	$	1,192.0		1,185.6	1,213.1	1,262.8	1,245.9	1		(4)

Common Equity Tier 1 to total RWAs	(A)/(D)	11.6		%	11.4	11.0	10.7	11.1
Tier 1 capital to total RWAs	(B)/(D)	13.3			13.1	12.6	12.2	12.8
Total capital to total RWAs	(C)/(D)	16.5			16.3	15.9	15.2	15.8


	Dec 31, 2020							Sep 30, 2020							Dec 31, 2019
($ in millions)	Nonaccrual loans		Loans outstanding	% of total loans		Total commitments (1)		Nonaccrual loans		Loans outstanding	% of total loans		Total commitments (1)		Nonaccrual loans		Loans outstanding	% of total loans		Total commitments (1)
Financials except banks	$	160	117,726	13	%	$	206,999	$	204	108,597	12	%	$	193,838	$	112	117,312	12	%	$	200,848
Technology, telecom and media	144		23,061	3		56,500		100		24,517	3		56,417		28		22,447	2		53,343
Real estate and construction	133		23,113	3		51,526		287		24,959	3		52,995		47		22,011	2		48,217
Retail	94		17,393	2		41,669		149		19,243	2		42,250		105		19,923	2		41,938
Equipment, machinery and parts manufacturing	81		18,158	2		41,332		95		19,586	2		40,649		36		23,457	2		42,040
Materials and commodities	39		12,071	1		33,879		48		13,188	1		35,885		33		16,375	2		39,369
Health care and pharmaceuticals	145		15,322	2		32,154		163		16,074	2		32,304		28		14,920	2		30,168
Oil, gas and pipelines	953		10,471	1		30,055		1,188		11,138	1		31,344		615		13,562	1		35,445
Food and beverage manufacturing	17		12,401	1		28,908		30		12,051	1		28,597		9		14,991	2		29,172
Automobile related	79		11,817	1		25,034		24		12,031	1		25,240		24		15,996	2		26,310
Commercial services	107		10,284	1		24,442		145		10,618	*		24,467		50		10,455	*		22,713
Utilities	2		5,031	*		18,564		9		5,922	*		19,315		224		5,995	*		19,390
Entertainment and recreation	263		9,884	1		17,551		85		9,643	1		16,849		44		13,462	1		19,854
Transportation services	573		9,236	1		15,531		390		10,216	1		16,642		224		10,957	*		17,660
Diversified or miscellaneous	7		5,437	*		14,717		16		4,965	—		14,043		4		4,600	*		11,290
Insurance and fiduciaries	2		3,297	*		14,334		2		3,463	*		14,814		1		5,525	*		15,596
Banks	—		12,789	1		13,842		—		12,975	1		13,982		—		20,070	*		20,728
Agribusiness	81		6,314	*		11,642		40		6,829	*		12,419		35		7,539	*		12,901
Government and education	9		5,464	*		11,065		10		5,413	*		11,691		6		5,363	*		12,267
Other (2)	$	68	5,623	*		$	23,315	$	36	6,432	2	%	$	13,946	$	15	8,996	1	%	$	21,698
Total	$	2,957	334,892	33	%	$	713,059	$	3,021	337,860	37	%	$	697,687	$	1,640	373,956	39	%	$	720,947