WELLS FARGO & COMPANY/MN Q4 FY2024 earnings call

• Acknowledged the devastation from Los Angeles wildfires and thanked employees. - Highlighted improved earnings profile, strong balance sheet, and capital returns to shareholders. - Progress on risk and control work, including termination of consent orders. - Strategic priorities: Progress in credit card platform, auto business co-branded agreement, repositioning of home lending business, growth in consumer and small business banking, enhancements to branches and mobile app, and progress in commercial and corporate banking.

Consumer Small and Business Banking: Revenue declined 7% year-over-year due to lower net interest income. Home lending revenue grew 2% year-over-year. Credit card revenue grew 3% year-over-year. Auto revenue decreased 21% year-over-year. Personal lending revenue down due to lower loan balances and loan spread compression. Commercial Banking: Middle Market Banking revenue down 2% year-over-year. Asset-based lending and leasing revenue down 12% year-over-year. Average loan balances down 1% year-over-year. Corporate and Investment Banking: Banking revenue down 4% year-over-year. Commercial real estate revenue down 1% year-over-year. Markets revenue down 5% year-over-year. Average loans down 6% year-over-year. Wealth and Investment Management: Revenue increased 8% year-over-year due to higher asset-based fees. Corporate: Revenue increased due to improved venture capital investments.

• Net interest income expected to be 1%-3% higher in 2025 than 2024. - Noninterest expense expected to be approximately $54.2 billion in 2025. - Expectations for modest loan growth, deposit growth, and reinvestment of securities.

• Cyber risk, credit risk, interest rate risk, operational risk, and geopolitical risks.

Q: Mike, could you unpack the deposit expectations embedded in Slide 18 and the NII outlook?

A: Mike Santomassimo discussed stabilization of retail volumes and mix, expected absolute growth in consumer franchise, and stabilization of noninterest-bearing vs. interest-bearing mix.

Q: John McDonald asked about credit card profitability. How is card profitability now?

A: Mike Santomassimo said credit card profitability is still early days but vintages are maturing and expected to become more profitable.

Q: Ebrahim Poonawala asked about ROE trajectory post-lifting of OCC consent order. How is this expected to show up?

A: Mike Santomassimo said they've rolled out a standard incentive framework in branches, expecting results to come through meaningfully.

Q: John Pancari asked about loan growth outlook and buyback appetite. Mike Santomassimo discussed modest loan growth across categories and standard buyback decision-making.

Q: Betsy Graseck asked about credit card management change. Charlie Scharf discussed Ray Fischer's retirement and new leadership.

Q: Matt O'Connor asked about rate sensitivity to NII. Mike Santomassimo said Wells Fargo is marginally asset-sensitive and balance sheet has become less sensitive.

Q: David Long asked about auto business growth. Mike Santomassimo discussed evolving auto business with better capabilities and the Volkswagen/Audi deal.

Q: Vivek Juneja asked about NII ex-markets guide. Mike Santomassimo said they don't disaggregate that at this point.

Q: Gerard Cassidy asked about risks and acquisitions. Charlie Scharf mentioned cyber risk and focus on organic growth. Mike Santomassimo said focus is on organic growth opportunities.

Q: Saul Martinez asked about operational/cultural constraints. Charlie Scharf discussed disciplined approach to growth with controlled risk framework.