Wells Fargo & Company (WFC) 8-KWells Fargo Reports Second Quarter 2024 Net Income of $4.9 billion, or $1.33 per Diluted Share

© 2024 Wells Fargo Bank, N.A. All rights reserved. 2Q24 Financial Results July 12, 2024 Exhibit 99.3

 

22Q24 Financial Results 2Q24 results Financial Results ROE: 11.5% ROTCE: 13.7%1 Efficiency ratio: 64%2 Credit Quality Capital and Liquidity CET1 ratio: 11.0%6 LCR: 124%7 TLAC ratio: 24.8%8 • Provision for credit losses5 of $1.2 billion – Total net loan charge-offs of $1.3 billion, up $537 million, with net loan charge-offs of 0.57% of average loans (annualized) – Allowance for credit losses for loans of $14.8 billion, stable • Common Equity Tier 1 (CET1) capital6 of $134.2 billion • CET1 ratio6 of 11.0% under the Standardized Approach and 12.3% under the Advanced Approach • Liquidity coverage ratio (LCR)7 of 124% • Net income of $4.9 billion, or $1.33 per diluted common share • Revenue of $20.7 billion, up 1% – Net interest income of $11.9 billion, down 9% – Noninterest income of $8.8 billion, up 19% • Noninterest expense of $13.3 billion, up 2% • Pre-tax pre-provision profit3 of $7.4 billion, down 2% • Effective income tax rate of 20.3%4 • Average loans of $917.0 billion, down 3% • Average deposits of $1.3 trillion, stable Comparisons in the bullet points are for 2Q24 versus 2Q23, unless otherwise noted. Endnotes are presented starting on page 18.

 

32Q24 Financial Results 2Q24 earnings Quarter ended $ Change from $ in millions, except per share data 2Q24 1Q24 2Q23 1Q24 2Q23 Net interest income $11,923 12,227 13,163 ($304) (1,240) Noninterest income 8,766 8,636 7,370 130 1,396 Total revenue 20,689 20,863 20,533 (174) 156 Net charge-offs 1,303 1,157 764 146 539 Change in the allowance for credit losses (67) (219) 949 152 (1,016) Provision for credit losses1 1,236 938 1,713 298 (477) Noninterest expense 13,293 14,338 12,987 (1,045) 306 Pre-tax income 6,160 5,587 5,833 573 327 Income tax expense (benefit)2 1,251 964 930 287 321 Effective income tax rate (%) 20.3 % 17.3 15.8 304 bps 446 Net income $4,910 4,619 4,938 $291 (28) Diluted earnings per common share $1.33 1.20 1.25 $0.13 0.08 Diluted average common shares (# mm) 3,486.2 3,600.1 3,724.9 (114) (239) Return on equity (ROE) 11.5 % 10.5 11.4 109 bps 10 Return on average tangible common equity (ROTCE)3 13.7 12.3 13.7 135 (2) Efficiency ratio 64 69 63 (447) 100 Endnotes are presented starting on page 18.

 

42Q24 Financial Results 13,163 13,105 12,771 12,227 11,923 Net Interest Margin (NIM) on a taxable-equivalent basis 2Q23 3Q23 4Q23 1Q24 2Q24 2.75% Net interest income • Net interest income down $1.2 billion, or 9%, from 2Q23 due to the impact of higher interest rates on funding costs, including the impact of lower deposit balances and customer migration to higher yielding deposit products in Consumer Banking and Lending and Wealth and Investment Management, higher deposit costs in Commercial Banking and Corporate and Investment Banking, as well as lower loan balances, partially offset by higher yields on earning assets • Net interest income down $304 million, or 2%, from 1Q24 driven by the impact of higher funding costs, as well as lower loan balances, partially offset by a modest redeployment of cash balances into higher-yielding securities Net Interest Income ($ in millions) 3.09% 3.03% 2.92% 2.81% 1 Endnotes are presented starting on page 18.

 

52Q24 Financial Results Loans and deposits • Average loans down $28.9 billion, or 3%, year-over-year (YoY) driven by declines in most loan categories, partially offset by higher credit card loan balances • Total average loan yield of 6.40%, up 41 bps YoY reflecting the impact of higher interest rates and up 2 bps from 1Q24 • Period-end loans of $917.9 billion, down $30.1 billion, or 3%, YoY, and down $4.9 billion, or 1%, from 1Q24 • Average deposits down $972 million YoY reflecting customer migration to higher yielding alternatives and continued consumer spending; up $4.9 billion from 1Q24 on growth in all customer-facing lines of business • Period-end deposits up $21.3 billion, or 2%, YoY, and down $17.2 billion, or 1%, from 1Q24 Average Loans Outstanding ($ in billions) 945.9 943.2 938.0 928.1 917.0 553.0 551.5 548.3 542.1 534.8 392.9 391.7 389.7 386.0 382.2 Total Average Loan Yield Consumer Loans Commercial Loans 2Q23 3Q23 4Q23 1Q24 2Q24 5.99% 6.23% 6.35% 6.38% 6.40% Period-End Deposits ($ in billions) 2Q24 vs 1Q24 vs 2Q23 Consumer Banking and Lending $ 781.8 (2) % (5) % Commercial Banking 169.0 — 3 Corporate and Investment Banking 200.9 3 27 Wealth and Investment Management 103.7 1 (4) Corporate 110.5 (9) 20 Total deposits $ 1,365.9 (1) % 2 % Average deposit cost 1.84 % 0.10 0.71 1,347.4 1,340.3 1,340.9 1,341.6 1,346.5 823.3 801.1 779.5 773.2 778.2 166.7 160.6 163.3 164.0 166.9 160.3 157.2 173.1 183.3 187.5 112.4 107.5 102.1 101.5 102.8 84.7 113.9 122.9 119.6 111.1 Corporate Wealth and Investment Management Corporate and Investment Banking Commercial Banking Consumer Banking and Lending 2Q23 3Q23 4Q23 1Q24 2Q24 Period-End Loans Outstanding ($ in billions) 2Q24 vs 1Q24 vs 2Q23 Commercial $ 536.6 — % (3) % Consumer 381.3 (1) (3) Total Loans $ 917.9 (1) % (3) % Average Deposits ($ in billions)

 

62Q24 Financial Results Noninterest Income ($ in millions) 7,370 7,752 7,707 8,636 8,766 524 555 799 940 935 1,098 1,098 1,027 1,061 1,101 376 492 455 627 6411,122 1,265 1,070 1,454 1,442 1,517 1,551 1,568 1,597 1,618 2,733 2,791 2,788 2,957 3,029 Investment advisory fees and brokerage commissions Deposit and lending-related fees Net gains from trading activities Investment banking fees Card fees All other 2Q23 3Q23 4Q23 1Q24 2Q24 • Noninterest income increased $1.4 billion, or 19%, from 2Q23 – Investment advisory fees and brokerage commissions1 up $296 million, or 11%, predominantly driven by higher asset-based fees reflecting higher market valuations – Deposit and lending-related fees up $101 million, or 7%, driven by higher deposit-related fees including higher treasury management fees – Net gains from trading activities up $320 million, or 29%, reflecting market conditions, as well as investments in our Markets business – Investment banking fees up $265 million, or 70%, on increased activity across all products – All other2 up $411 million and included the impact from the adoption of a new accounting standard for renewable energy tax credit investments3, as well as improved results from our venture capital investments • Noninterest income up $130 million, or 2%, from 1Q24 – Investment advisory fees and brokerage commissions1 up $72 million, or 2%, as higher market valuations drove higher asset-based fees – Card fees up $40 million on higher credit card and debit card purchase volumes primarily reflecting seasonality Noninterest income 2 1 Endnotes are presented starting on page 18.

 

72Q24 Financial Results 12,987 13,113 15,786 14,338 13,293 4,149 4,157 4,319 3,929 4,173 8,606 8,627 8,212 9,492 8,575 1,931 Operating Losses FDIC Special Assessment Personnel Expense Non-personnel Expense 2Q23 3Q23 4Q23 1Q24 2Q24 Noninterest expense • Noninterest expense up $306 million, or 2%, from 2Q23 – Operating losses up $261 million including higher customer remediation accruals for historical matters – Personnel expense down $31 million and reflected the impact of efficiency initiatives, largely offset by higher revenue-related compensation expense predominantly in Wealth and Investment Management – Non-personnel expense up $24 million, or 1%, driven by higher technology amortization, occupancy expense, and advertising and promotion expense, partially offset by lower professional and outside services expense • Noninterest expense down $1.0 billion, or 7%, from 1Q24 – Operating losses down $140 million driven by lower customer remediation accruals – FDIC special assessment2 down $232 million – Personnel expense down $917 million from seasonally higher personnel expense in 1Q, as well as the impact of efficiency initiatives – Non-personnel expense up $244 million, or 6%, driven by higher charitable donations expense, occupancy expense, professional and outside services expense, and advertising and promotion expense Noninterest Expense ($ in millions) Headcount (Period-end, '000s) 2Q23 3Q23 4Q23 1Q24 2Q24 234 227 226 225 223 633 355 329232 9691 Endnotes are presented starting on page 18. 284 1 493 52

 

82Q24 Financial Results 1,713 1,197 1,282 938 1,236 764 850 1,252 1,149 1,301 Provision for Credit Losses Net Loan Charge-offs Net Loan Charge-off Ratio 2Q23 3Q23 4Q23 1Q24 2Q24 Credit quality: net loan charge-offs • Commercial net loan charge-offs up $127 million to 35 bps of average loans (annualized) reflecting an $84 million increase in commercial real estate (CRE) net loan charge-offs and $40 million of higher commercial & industrial net loan charge-offs – CRE net loan charge-offs of $271 million, or 74 bps of average loans (annualized) predominantly driven by CRE office net loan charge-offs • Consumer net loan charge-offs up $25 million to 88 bps of average loans (annualized) reflecting a $72 million increase in credit card net loan charge-offs, partially offset by $33 million of lower auto net loan charge-offs • Nonperforming assets of $8.7 billion, up $410 million, or 5%, predominantly driven by higher CRE nonaccruals – CRE nonaccrual loans of $4.3 billion, up $408 million driven by a $557 million increase in CRE office nonaccruals Provision for Credit Losses1 and Net Loan Charge-offs ($ in millions) Comparisons in the bullet points are for 2Q24 versus 1Q24. Endnotes are presented starting on page 18. 0.32% 0.36% 0.50%0.53% 1 0.57%

 

92Q24 Financial Results Credit quality: allowance for credit losses for loans Allowance for Credit Losses for Loans ($ in millions) • Allowance for credit losses for loans (ACL) down $73 million on modest ACL declines across most asset classes, partially offset by a higher ACL for credit card loans – Allowance coverage for total loans was up 5 bps from 2Q23 and was stable compared with 1Q24 • CRE Office ACL of $2.4 billion, down $5 million – CRE Office ACL as a % of loans of 8.0%, up modestly from 7.9% ◦ Corporate and Investment Banking (CIB) CRE Office ACL as a % of loans of 11.1%, up modestly from 11.0% 14,786 15,064 15,088 14,862 14,789 8,081 8,310 8,412 8,317 8,236 6,705 6,754 6,676 6,545 6,553 Commercial Consumer Allowance coverage for total loans 2Q23 3Q23 4Q23 1Q24 2Q24 1.60%1.56% 1.61% 1.61% 1.61% 1 CRE Allowance for Credit Losses (ACL) and Nonaccrual Loans, as of 6/30/24 ($ in millions) Allowance for Credit Losses Loans Outstanding ACL as a % of Loans Nonaccrual Loans CIB CRE Office $ 2,171 19,561 11.1% $ 3,589 All other CRE Office 232 10,453 2.2 104 Total CRE Office 2,403 30,014 8.0 3,693 All other CRE 1,351 115,304 1.2 628 Total CRE $ 3,754 145,318 2.6% $ 4,321 Comparisons in the bullet points are for 2Q24 versus 1Q24, unless otherwise noted.

 

102Q24 Financial Results Capital and liquidity Capital Position • Common Equity Tier 1 (CET1) ratio1 of 11.0% at June 30, 2024 remained above our regulatory minimum and buffers of 8.9%2 • The Company's stress capital buffer (SCB) for 10/1/24 through 9/30/25 is expected to increase to 3.8%, up 90 bps from current SCB of 2.9% Capital Return • $6.1 billion in gross common stock repurchases, or 100.5 million shares, in 2Q24 with period-end common shares outstanding down 265.0 million, or 7%, from 2Q23 • $1.2 billion in common stock dividends paid in 2Q24 with a common stock dividend of $0.35 per share • We expect to increase our 3Q24 common stock dividend to $0.40 per share, subject to approval by the Company's Board of Directors at its regularly scheduled meeting in July Total Loss Absorbing Capacity (TLAC) • As of June 30, 2024, our TLAC as a percentage of total risk-weighted assets3 was 24.8% compared with the required minimum of 21.5% Liquidity Position • Strong liquidity position with a 2Q24 LCR4 of 124% which remained above our regulatory minimum of 100% 10.7% 11.0% 11.4% 11.2% 11.0% 2Q23 3Q23 4Q23 1Q24 2Q24 Estimated 8.9% Regulatory Minimum and Buffers2 Common Equity Tier 1 Ratio under the Standardized Approach1 Endnotes are presented starting on page 18.

 

112Q24 Financial Results • Total revenue down 5% YoY and down 1% from 1Q24 – CSBB down 5% YoY driven by lower deposit balances and the impact of customer migration to higher yielding deposit products including promotional savings and time deposit accounts – Home Lending down 3% YoY on lower net interest income on lower loan balances; down 5% from 1Q24 on lower mortgage banking income – Credit Card stable YoY; down 3% from 1Q24 driven by lower net interest income, partially offset by higher purchase volumes reflecting seasonality and new account growth – Auto down 25% YoY driven by lower loan balances and loan spread compression; down 6% from 1Q24 driven by lower loan balances – Personal Lending down 4% YoY driven by lower loan balances and loan spread compression • Noninterest expense down 5% YoY and down 5% from 1Q24 reflecting lower operating costs and the impact of efficiency initiatives Consumer Banking and Lending Summary Financials $ in millions (mm) 2Q24 vs. 1Q24 vs. 2Q23 Revenue by line of business: Consumer, Small and Business Banking (CSBB) $6,129 $37 (319) Consumer Lending: Home Lending 823 (41) (24) Credit Card 1,452 (44) 3 Auto 282 (18) (96) Personal Lending 320 (19) (13) Total revenue 9,006 (85) (449) Provision for credit losses 932 144 58 Noninterest expense 5,701 (323) (326) Pre-tax income 2,373 94 (181) Net income $1,777 $71 (137) Selected Metrics 2Q24 1Q24 2Q23 Return on allocated capital1 15.1 % 14.5 16.9 Efficiency ratio2 63 66 64 Retail bank branches # 4,227 4,247 4,455 Digital (online and mobile) active customers3 (mm) 35.6 35.5 34.2 Mobile active customers3 (mm) 30.8 30.5 29.1 Average Balances and Selected Credit Metrics $ in billions 2Q24 1Q24 2Q23 Balances Loans $325.9 329.7 336.4 Deposits 778.2 773.2 823.3 Credit Performance Net charge-offs as a % of average loans 1.12 % 1.07 0.74 Endnotes are presented starting on page 18.

 

122Q24 Financial Results Consumer Banking and Lending Retail Mortgage Loan Originations ($ in billions) Auto Loan Originations ($ in billions) Credit Card Point of Sale (POS) Volume ($ in billions) Debit Card Purchase Volume and Transactions1 7.7 6.4 4.5 3.5 5.3 Refinances as a % of Retail Originations 2Q23 3Q23 4Q23 1Q24 2Q24 124.9 124.5 126.1 121.5 128.2 Purchase Volume ($ in billions) Purchase Transactions (billions) 2Q23 3Q23 4Q23 1Q24 2Q24 4.8 4.1 3.3 4.1 3.7 2Q23 3Q23 4Q23 1Q24 2Q24 38.3 39.4 41.2 39.1 42.9 2Q23 3Q23 4Q23 1Q24 2Q24 2.5 2.6 2.5 2.4 2.6 17% 16% 24% 18% 13% Endnotes are presented starting on page 18.

 

132Q24 Financial Results Commercial Banking • Total revenue down 7% YoY and down 1% from 1Q24 – Middle Market Banking revenue down 2% YoY driven by lower net interest income reflecting the impact of higher interest rates on deposit costs, partially offset by higher treasury management fees; up 4% from 1Q24 and included higher net interest income and higher treasury management fees – Asset-Based Lending and Leasing revenue down 17% YoY and included lower net interest income, lease income, and revenue from equity investments; down 10% from 1Q24 and included lower net interest income and lease income • Noninterest expense down 8% YoY on lower personnel expense reflecting the impact of efficiency initiatives, and lower operating costs; down 10% from 1Q24 on lower personnel expense reflecting 1Q seasonality and the impact of efficiency initiatives, as well as lower operating costs Summary Financials $ in millions 2Q24 vs. 1Q24 vs. 2Q23 Revenue by line of business: Middle Market Banking1 $2,153 $75 (46) Asset-Based Lending and Leasing1 969 (105) (201) Total revenue 3,122 (30) (247) Provision for credit losses 29 (114) 3 Noninterest expense 1,506 (173) (124) Pre-tax income 1,587 257 (126) Net income $1,182 $196 (99) Selected Metrics 2Q24 1Q24 2Q23 Return on allocated capital 17.3 % 14.3 19.3 Efficiency ratio 48 53 48 Average loans by line of business ($ in billions) Middle Market Banking 1 $128.2 119.3 122.2 Asset-Based Lending and Leasing1 96.2 104.6 103.6 Total loans $224.4 223.9 225.8 Average deposits 166.9 164.0 166.7 Endnotes are presented starting on page 18.

 

142Q24 Financial Results Corporate and Investment Banking • Total revenue up 4% YoY and down 3% from 1Q24 – Banking revenue up 3% YoY driven by higher investment banking revenue on increased activity across all products, partially offset by lower treasury management results driven by the impact of higher interest rates on deposit costs; down 2% from 1Q24 on lower investment banking revenue – Commercial Real Estate revenue down 4% YoY and included the impact of lower loan balances, partially offset by higher commercial mortgage-backed securities volumes; up 5% from 1Q24 predominantly driven by higher commercial real estate capital markets revenue, partially offset by the impact of lower loan balances – Markets revenue up 16% YoY driven by higher revenue in equities, structured products, and credit products, partially offset by lower revenue in rates products; down 2% from 1Q24 driven by lower trading activity across most FICC asset classes, partially offset by higher equities revenue • Noninterest expense up 4% YoY driven by higher operating costs, partially offset by the impact of efficiency initiatives; down 7% from 1Q24 on lower personnel expense due to 1Q seasonality Summary Financials $ in millions 2Q24 vs. 1Q24 vs. 2Q23 Revenue by line of business: Banking: Lending $688 $7 3 Treasury Management and Payments 687 1 (75) Investment Banking 430 (44) 119 Total Banking 1,805 (36) 47 Commercial Real Estate 1,283 60 (50) Markets: Fixed Income, Currencies and Commodities (FICC) 1,228 (131) 95 Equities 558 108 161 Credit Adjustment (CVA/DVA) and Other 7 (12) (7) Total Markets 1,793 (35) 249 Other (43) (133) (39) Total revenue 4,838 (144) 207 Provision for credit losses 285 280 (648) Noninterest expense 2,170 (160) 83 Pre-tax income 2,383 (264) 772 Net income $1,785 ($196) 575 Selected Metrics 2Q24 1Q24 2Q23 Return on allocated capital 15.4 % 17.2 10.2 Efficiency ratio 45 47 45 Average Balances ($ in billions) Loans by line of business 2Q24 1Q24 2Q23 Banking $86.1 90.9 95.4 Commercial Real Estate 128.1 131.7 136.5 Markets 61.6 60.6 59.6 Total loans $275.8 283.2 291.5 Deposits 187.5 183.3 160.3 Trading-related assets 219.5 201.2 196.1

 

152Q24 Financial Results Wealth and Investment Management Summary Financials $ in millions 2Q24 vs. 1Q24 vs. 2Q23 Net interest income $906 $37 (103) Noninterest income 2,952 79 313 Total revenue 3,858 116 210 Provision for credit losses (14) (17) (38) Noninterest expense 3,193 (37) 219 Pre-tax income 679 170 29 Net income $484 $103 (3) Selected Metrics ($ in billions) 2Q24 1Q24 2Q23 Return on allocated capital 29.0 % 22.7 30.5 Efficiency ratio 83 86 82 Average loans $83.2 82.5 83.0 Average deposits 102.8 101.5 112.4 Client assets Advisory assets 945 939 850 Other brokerage assets and deposits 1,255 1,247 1,148 Total client assets $2,200 2,186 1,998 • Total revenue up 6% YoY and up 3% from 1Q24 – Net interest income down 10% YoY driven by lower deposit balances and higher deposit costs as customers reallocated cash into higher yielding alternatives – Noninterest income up 12% YoY and up 3% from 1Q24 driven by higher asset- based fees reflecting an increase in market valuations • Noninterest expense up 7% YoY on higher revenue-related compensation and higher operating losses, partially offset by lower operating costs and the impact of efficiency initiatives

 

162Q24 Financial Results Corporate • Revenue increased YoY on higher net equity gains reflecting improved results from our venture capital investments; down from 1Q24 on higher crediting rates paid to the operating segments • Noninterest expense up YoY and included higher operating losses and FDIC assessments; down from 1Q24 reflecting lower personnel expense from a seasonally higher 1Q, as well as lower FDIC assessments and operating losses Summary Financials $ in millions 2Q24 vs. 1Q24 vs. 2Q23 Net interest income ($144) ($176) (53) Noninterest income 392 101 271 Total revenue 248 (75) 218 Provision for credit losses 4 5 148 Noninterest expense 723 (352) 454 Pre-tax loss (479) 272 (384) Income tax benefit (157) 160 (54) Less: Net loss from noncontrolling interests (4) (5) 34 Net loss ($318) $117 (364)

 

172Q24 Financial Results 2024 Outlook Endnotes are presented starting on page 18. Still expect 2024 net interest income to be in the range of down ~7-9% from 2023 level of $52.4 billion • Currently expect to be in the upper half of the range, or down ~8-9%, but we are only halfway through the year and many of the factors driving net interest income are uncertain Net Interest Income Noninterest Expense Expect 2024 noninterest expense to be ~$54.0 billion, up from prior guidance of ~$52.6 billion, and includes: • Higher revenue-related compensation expense as equity markets have outperformed our expectations (more than offset by higher noninterest income) • Operating losses and other customer remediation-related expenses, which have been higher than expected in the first half of 2024 • FDIC special assessment1 expense of $336 million in the first half of 2024 As previously disclosed, we have outstanding litigation, regulatory, and customer remediation matters that could impact operating losses

 

182Q24 Financial Results Endnotes Page 2 – 2Q24 results 1. 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” table on page 20. 2. The efficiency ratio is noninterest expense divided by total revenue. 3. Pre-tax pre-provision profit (PTPP) is total revenue less 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. 4. In first quarter 2024, we adopted a new accounting standard to use the proportional amortization method for renewable energy tax credit investments. Under the proportional amortization method, the amortization of the investments and the related tax impacts are both recognized in income tax expense. Previously, we recognized the amortization of the investments in other noninterest income and the related tax impacts were recognized in income tax expense. 5. Includes provision for credit losses for loans, debt securities, and other financial assets. 6. The Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach is our binding CET1 ratio. See page 21 for additional information regarding CET1 capital and ratios. CET1 is a preliminary estimate. 7. Liquidity coverage ratio (LCR) represents average high-quality liquid assets divided by average projected net cash outflows, as each is defined under the LCR rule. LCR is a preliminary estimate. 8. Represents total loss absorbing capacity (TLAC) divided by risk-weighted assets (RWAs), which is our binding TLAC ratio, determined by using the greater of RWAs under the Standardized and Advanced Approaches. TLAC is a preliminary estimate. Page 3 – 2Q24 earnings 1. Includes provision for credit losses for loans, debt securities, and other financial assets. 2. In first quarter 2024, we adopted a new accounting standard to use the proportional amortization method for renewable energy tax credit investments. Under the proportional amortization method, the amortization of the investments and the related tax impacts are both recognized in income tax expense. Previously, we recognized the amortization of the investments in other noninterest income and the related tax impacts were recognized in income tax expense. 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” table on page 20. Page 4 – Net interest income 1. Includes taxable-equivalent adjustments predominantly related to tax-exempt income on certain loans and securities. Page 6 – Noninterest income 1. Investment advisory fees and brokerage commissions includes investment advisory and other asset-based fees and commissions and brokerage services fees. 2. All other includes mortgage banking, net gains (losses) from debt securities, net gains (losses) from equity securities, lease income, and other. 3. In first quarter 2024, we adopted a new accounting standard to use the proportional amortization method for renewable energy tax credit investments. Under the proportional amortization method, the amortization of the investments and the related tax impacts are both recognized in income tax expense. Previously, we recognized the amortization of the investments in other noninterest income and the related tax impacts were recognized in income tax expense. Page 7 – Noninterest expense 1. 4Q23 total personnel expense of $9.2 billion included $969 million of severance expense for planned actions. 2. Federal Deposit Insurance Corporation (FDIC) special assessment expense reflects updates provided by the FDIC on losses to the deposit insurance fund.

 

192Q24 Financial Results Endnotes (continued) Page 8 – Credit quality: net loan charge-offs 1. Includes provision for credit losses for loans, debt securities, and other financial assets. Page 10 – Capital and liquidity 1. The Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach is our binding CET1 ratio. See page 21 for additional information regarding CET1 capital and ratios. 2Q24 CET1 is a preliminary estimate. 2. Includes a 4.50% minimum requirement, a stress capital buffer of 2.90%, and a G-SIB capital surcharge of 1.50%. 3. Represents total loss absorbing capacity (TLAC) divided by risk-weighted assets (RWAs), which is our binding TLAC ratio, determined by using the greater of RWAs under the Standardized and Advanced Approaches. TLAC is a preliminary estimate. 4. Liquidity coverage ratio (LCR) represents average high-quality liquid assets divided by average projected net cash outflows, as each is defined under the LCR rule. 2Q24 LCR is a preliminary estimate. Page 11 – Consumer Banking and Lending 1. Return on allocated capital is segment net income (loss) applicable to common stock divided by segment average allocated capital. Segment net income (loss) applicable to common stock is segment net income (loss) less allocated preferred stock dividends. 2. Efficiency ratio is segment noninterest expense divided by segment total revenue. 3. Digital and mobile active customers is the number of consumer and small business customers who have logged on via a digital or mobile device, respectively, in the prior 90 days. Page 12 – Consumer Banking and Lending 1. Debit card purchase volume and transactions reflect combined activity for both consumer and business debit card purchases. Page 13 – Commercial Banking 1. In second quarter 2024, we prospectively transferred our commercial auto business from Asset-Based Lending and Leasing to Middle Market Banking. Page 17 – 2024 Outlook 1. Federal Deposit Insurance Corporation (FDIC) special assessment expense reflects updates provided by the FDIC on losses to the deposit insurance fund.

 

202Q24 Financial Results Tangible Common Equity Wells Fargo & Company and Subsidiaries TANGIBLE COMMON EQUITY We also evaluate our business based on certain ratios that utilize tangible common equity. Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, goodwill, certain identifiable intangible assets (other than MSRs) and goodwill and other intangibles on investments in consolidated portfolio companies, net of applicable deferred taxes. One of these ratios is return on average tangible common equity (ROTCE), which represents our annualized earnings as a percentage of tangible common equity. 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 management, investors, and others to assess the Company’s use of equity. The table below provides a reconciliation of this non-GAAP financial measure to GAAP financial measures. Quarter ended ($ in millions) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Return on average tangible common equity: Net income applicable to common stock (A) $ 4,640 4,313 3,160 5,450 4,659 Average total equity 181,552 186,669 185,853 184,828 184,443 Adjustments: Preferred stock (18,300) (19,291) (19,448) (20,441) (19,448) Additional paid-in capital on preferred stock 145 155 157 171 173 Noncontrolling interests (1,743) (1,710) (1,664) (1,775) (1,924) Average common stockholders’ equity (B) 161,654 165,823 164,898 162,783 163,244 Adjustments: Goodwill (25,172) (25,174) (25,173) (25,174) (25,175) Certain identifiable intangible assets (other than MSRs) (101) (112) (124) (137) (140) Goodwill and other intangibles on investments in consolidated portfolio companies (included in other assets)1 (965) (879) (878) (2,539) (2,487) Applicable deferred taxes related to goodwill and other intangible assets2 931 924 918 910 903 Average tangible common equity (C) $ 136,347 140,582 139,641 135,843 136,345 Return on average common stockholders’ equity (ROE) (annualized) (A)/(B) 11.5 % 10.5 7.6 13.3 11.4 Return on average tangible common equity (ROTCE) (annualized) (A)/(C) 13.7 12.3 9.0 15.9 13.7 1. In third quarter 2023, we sold investments in certain private equity funds. As a result, we have removed the related goodwill and other intangible assets on investments in consolidated portfolio companies. 2. Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period-end.