7 (PELOS) Wholesale v3 - Wells Fargo

Wholesale Banking

Perry Pelos Senior Executive Vice President

May 11, 2017

? 2017 Wells Fargo & Company. All rights reserved.

Business Overview

Wholesale Banking overview

Wholesale Banking operates ten major lines of business, serving diverse market and customer segments including business

banking, middle market, and large corporates, as well as financial institutions

Presence

32,000+ team members 627 domestic locations 42 countries and territories

1Q17 Financials

$807.8B Average assets $466.0B Average deposits $466.3B Average loans $7.0B Revenue $2.1B Net income

Wells Fargo 2017 Investor Day

Wholesale Banking 2

Revenue and income contribution

Share of Wells Fargo Revenue and Net Income

2016 Revenue

Wholesale Revenue by Category

Service charges (1)

Investment Banking Insurance Loan and Letter of Credit fees Trading gains

Trust & investment fees

68%

32% Wholesale: 32%

Operating leases Equity investment gains

Other

2016 Net income

62%

38% Wholesale: 38%

Net interest income

(1) Includes Treasury Management fees.

Wells Fargo 2017 Investor Day

Wholesale Banking 3

Financial performance

($ in millions)

Net Income

$8,199

$8,194

$8,235

2014

2015

2016

Shading = Operating lease revenue and expense, respectively.

Wells Fargo 2017 Investor Day

Revenue

$25,398

$25,904

$28,542

2014

2015

Provision Expense

2016

-$382 2014

$27 2015

Noninterest Expense

$13,831

$14,116

$1,073 2016

$16,126

2014

2015

2016

Wholesale Banking 4

Continued strong credit quality

Credit quality remained strong with net charge-offs of 7 bps in 1Q17, as oil and gas portfolio losses have declined from their peak in 2Q16

Net Charge-offs

($ in millions, % of average loans)

$600

0.27%

0.30%

$500

0.25%

$400 $300

0.19% 0.12%

0.16% 0.14%

0.20% 0.15%

$200

0.10% 0.07%

$100 $0

-$100

0.005%

0.03%

1Q15

2Q15

3Q15

4Q15

-0.01%

Wholesale excluding Energy

1Q16

2Q16

3Q16

4Q16

1Q17

Oil and Gas Portfolio

Net Charge-off Rate

0.05% 0.00% -0.05%

Wells Fargo 2017 Investor Day

Wholesale Banking 5

Wholesale Banking's 10 major lines of business

Partnering across the organization and its teams in service of our customers

Business Banking Group (BBG) National Specialty Industry Group Regional Business Banking SBA Lending

Commercial Real Estate (CRE) Commercial Mortgage Servicing Community Lending & Investment Commercial Real Estate Capital Markets and Finance Homebuilder Banking Hospitality Finance Group Multifamily Capital Real Estate Capital Markets Real Estate Merchant Banking REIT Finance Group Senior Housing Finance U.K. and Canada Lending U.S. National Lending

Corporate Banking (CBG) Consumer & Retail Energy Global Healthcare Industrials Restaurant Finance & Gaming Strategic Capital Technology, Media, & Telecom

Wells Fargo 2017 Investor Day

Financial Institutions Group (FIG) Financial Institutions Global Financial Institutions

Government & Institutional Banking (GIB) Government Banking Education & Nonprofit Banking Healthcare Financial Services (Nonprofit)

Middle Market Banking (MMB) International Trade Services Specialty businesses, including Global Advisory Group

Principal Investments (PI) Corporate Credit Municipals Reinsurance Renewable Energy and Environmental Finance Structured Products

Wells Fargo Commercial Capital (WFCC) Asset-Backed Finance Commercial Distribution Finance Corporate Trust Services Wells Fargo Equipment Finance Wells Fargo Capital Finance Wells Fargo Rail

Wells Fargo Insurance (WFI) Insurance Brokerage and Consulting Personal and Small Business Insurance

Wells Fargo Securities (WFS) Eastdil Secured Foreign Exchange Investment Banking & Capital Markets

Markets Division

Municipal Products

Research & Economics

Wholesale COO (1)

Consent Order Remediation Domestic & International Operations International Regional Leadership &

Governance Legal Entity Remediation ? Drafting &

Communications Strategy & International Governance Wholesale Business Solutions Wholesale Relationship Strategies &

Insights

(1) Not included in the count of Wholesale's 10 major lines of business.

Wholesale Banking 6

Diversified revenue streams

(% of Wholesale 2016 Revenue) (1) Wells Fargo Commercial Capital

Wells Fargo Securities

19%

Corporate Banking

17%

Middle Market Banking

16%

Commercial Real Estate

11%

Principal Investments

10%

Business Banking

9%

Wells Fargo Insurance

5%

Global Financial Institutions

Government & Institutional Banking

Global Banking

5% 4% 2%

26%

Equipment Finance

WF Capital Finance

Asset Backed Finance

10% 8% 5%

Other WFCC 3%

(1) Revenue percentages are before double-count eliminations and do not add to 100%.

Wells Fargo 2017 Investor Day

Wholesale Banking 7

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download