Wells Fargo Reports Record Full Year and Quarterly Net Income

  Wells Fargo Reports Record Full Year and Quarterly Net Income

   2012 Net Income of $18.9 Billion, Up 19% from 2011; Record EPS of $3.36

        Q4 Net Income of $5.1 Billion, Up 24% YoY; Record EPS of $0.91

Business Wire

SAN FRANCISCO -- January 11, 2013

Wells Fargo & Company (NYSE:WFC):

  *Continued strong financial results:

       *Full year 2012:

            *Record net income of $18.9 billion, up 19 percent from 2011
            *Record diluted EPS of $3.36, up 19 percent from 2011
            *Revenue of $86.1 billion, up 6 percent from 2011
            *Positive operating leverage (revenue growth of 6 percent
              exceeded expense growth of 2 percent)
            *Returned more capital to shareholders through a higher common
              stock dividend (up 83percent), and common stock repurchases
              (approximately 120 million shares)

       *Fourth quarter 2012:

            *Record net income of $5.1 billion, up 24 percent from fourth
              quarter 2011
            *Record diluted EPS of $0.91, up 25 percent from fourth quarter
              2011
            *Revenue of $21.9 billion, up 7 percent from fourth quarter 2011
            *Total average core checking and savings deposits up $72.0
              billion from fourth quarter 2011
            *Total loans of $799.6 billion, up $29.9 billion from fourth
              quarter 2011
            *Core loan portfolio up $47.7 billion from fourth quarter 2011^1

       *Fourth quarter 2012 results^2 included:

            *$393 million, or $0.05 per share, in above-average quarterly
              equity gains^3
            *$(644) million, or $(0.09) per share, in operating losses from
              an incremental accrual to fully reserve for the costs associated
              with the Independent Foreclosure Review (IFR) settlement and
              additional remediation-related costs
            *$(250) million, or $(0.03) per share, in noninterest expense for
              a contribution to the Wells Fargo Foundation
            *$332 million, or $0.06 per share, in lower tax expense due to a
              benefit associated with the realization for tax purposes of a
              previously written-down Wachovia life insurance investment

       *Solid credit quality:

            *Net charge-offs of $2.1 billion, or 1.05 percent (annualized) of
              average loans, including $321million of net charge-offs (fully
              covered by loan loss reserves) from the completion of
              implementation of the OCC guidance^4 issued in third quarter
              2012
            *Excluding the impact of the OCC guidance, net charge-offs of
              $1.8 billion or 0.89 percent (annualized) of average loans
            *$250 million (pre-tax) reserve release^5 due to continued strong
              credit performance

       *Maintained strong capital position:

            *Tier 1 common equity^6 under Basel I increased $3.3 billion from
              prior quarter to $109.1 billion, with Tier 1 common equity ratio
              of 10.12 percent under BaselI at December31,2012. Estimated
              Tier1common equity ratio of 8.18percent under current Basel
              III capital proposals^7
            *Purchased approximately 42 million shares of common stock in
              fourth quarter 2012 and an additional estimated 6million shares
              through a forward repurchase transaction expected to settle in
              first quarter 2013

   
^1   See table in Loans section for more information on core and
     non-strategic/liquidating loan portfolios.
^2   Fourth quarter 2012 effective tax rate of 27.4 percent used in the
     calculation of per share amounts.
     Fourth quarter 2012 net gains from equity investments of $715 million
^3   were $393 million higher than previous seven quarter average net gains of
     $322 million.
     Office of the Comptroller of the Currency update to Bank Accounting
     Advisory Series issued third quarter 2012 (OCC guidance), which requires
     consumer loans discharged in bankruptcy to be placed on nonaccrual status
^4   and written down to net realizable collateral value, regardless of their
     delinquency status. See section on Credit Quality, including footnote 9,
     for additional information regarding the implementation of the OCC
     guidance and its effect on our credit metrics.
^5   Reserve release represents the amount by which net charge-offs exceed the
     provision for credit losses.
^6   See tables on TIER 1 COMMON EQUITY for more information on Tier 1 common
     equity.
     Estimated based on management’s current interpretation of the Basel III
     capital rules proposed by federal banking agencies in notices of proposed
^7   rulemaking announced in June 2012. The proposed rules and interpretations
     and assumptions used in estimating Basel III calculations are subject to
     change depending on final promulgation of Basel III capital rules.
     

                                                      
Selected Financial Information
                                                      
                                                           
                   Quarter ended
                   Dec. 31,         Sept.      Dec.         Year ended Dec.
                                    30,        31,          31,
                 2012      2012     2011      2012       2011
Earnings
Diluted
earnings per       $  0.91          0.88       0.73         3.36         2.82
common share
Wells Fargo
net income            5.09          4.94       4.11         18.90        15.87
(in
billions)
Return on             1.46    %     1.45       1.25         1.41         1.25
assets (ROA)
Return on             13.35         13.38      11.97        12.95        11.93
equity (ROE)
                                                                         
Asset
Quality
Net
charge-offs
as a % of             1.05          1.21       1.36         1.17         1.49
avg. total
loans
Allowance as
a % of total          2.19          2.27       2.56         2.19         2.56
loans
Allowance as
a % of
annualized            211           190        188          193          174
net
charge-offs
                                                                         
Other
Revenue (in        $  21.9          21.2       20.6         86.1         80.9
billions)
Efficiency            58.8    %     57.1       60.7         58.5         61.0
ratio
Average
loans (in          $  787.2         776.7      768.6        775.2        757.1
billions)
Average core
deposits (in          928.8         895.4      864.9        893.9        826.7
billions)
Net interest          3.56    %     3.66       3.89         3.76         3.94
margin
                                                      

Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of
$3.36 for 2012, up 19 percent from $2.82 in 2011. Full year net income was
$18.9 billion, compared with $15.9 billion in 2011. For fourth quarter 2012,
net income was $5.1 billion, or $0.91 per share, compared with $4.1 billion,
or $0.73 per share, for fourth quarter 2011.

“2012 was an outstanding year for Wells Fargo,” said Chairman and CEO John
Stumpf. “We saw the continued benefits of our diversified business model and
reported record full year and fourth quarter earnings, robust deposit and
solid loan growth, and strong performance across our business units. The
Company’s success is due to our more than 265,000 team members who remained
focused on our customers and on our vision to satisfy all of our customers’
financial needs.

“This time last year, I said we would benefit from the many opportunities we
saw for 2012 – and we did just that. From growing revenue, making strategic
acquisitions and achieving efficiency improvements, I am extremely pleased
with our 2012 performance. We also returned more capital to our shareholders
through common stock dividends and common stock repurchases. We are very well
positioned for and look forward to 2013, as Wells Fargo continues to work hard
to contribute to a growing U.S. economy by doing what we do best: helping
customers succeed financially.”

Chief Financial Officer Tim Sloan added, “The Company’s underlying results
were driven by solid loan growth, improved credit quality, and continued
success in improving efficiency. While our fourth quarter included some
noteworthy items, we achieved strong returns on average assets and equity of
1.46 percent and 13.35percent, respectively. We are very pleased with the
Company’s outstanding performance despite the challenges our industry faced
during this past year, including continued low interest rates and elevated
unemployment. Our balanced business model helped us deliver strong results
throughout these challenging times and should provide us the opportunity to
continue to deliver value to our shareholders in the coming year.”

Revenue

Revenue for the year was $86.1 billion, up 6 percent from $80.9 billion in
2011. Revenue in the fourth quarter increased 7 percent to $21.9 billion, up
$1.3 billion from a year ago. On a linked-quarter basis, revenue growth
accelerated 14 percent (annualized), up $735 million. Growth in noninterest
income was generated across our diversified businesses and net interest income
was relatively flat linked quarter. Businesses generating linked-quarter,
double-digit annualized revenue growth included capital finance, capital
markets, commercial banking, commercial real estate, corporate banking, credit
card, mortgage, and wealth management.

Net Interest Income

Net interest income in the fourth quarter decreased $249 million, or 2
percent, from a year ago, and was down slightly on a linked-quarter basis to
$10.6 billion in fourth quarter. Income from our loan portfolios rose slightly
from prior quarter, reflecting both organic growth in consumer and commercial
loans and the retention of $9.7 billion in high-quality, conforming first real
estate mortgages in the fourth quarter. While the available-for-sale (AFS)
securities portfolio balance was essentially flat linked-quarter, income
continued to be impacted by runoff in federal agency mortgage-backed
securities (MBS) and a decision to replace that runoff with shorter duration
securities. Interest income from the AFS securities portfolio declined by $69
million. Interest income from the mortgage warehouse was down $63 million in
the quarter as the size of the warehouse declined in line with lower
origination volume.

The decline in interest income was partially offset by a $49 million decrease
in interest expense, reflecting the benefit of continued reductions in deposit
and long term funding costs.

On a linked-quarter basis, the Company’s net interest margin declined 10 basis
points to 3.56 percent. The primary driver of the decline, approximately 8
basis points, was strong deposit growth of $30 billion in the quarter (12
percent annualized). This inflow of deposits caused cash and short term
investments to increase, and while these inflows diluted net interest margin,
they were essentially neutral to net interest income. The ongoing repricing of
the balance sheet in the current low interest rate environment resulted in
approximately 5 basis points of additional net interest margin compression.
This was partially offset by the benefit of slightly higher income from
variable sources, such as fee income and periodic dividends, which increased 3
basis points on a linked-quarter basis.

Noninterest Income

Noninterest income of $11.3 billion increased $1.6 billion, or 16 percent,
from fourth quarter 2011 and increased 28 percent (annualized) from third
quarter 2012. The linked-quarter increase reflects growth in service charges,
trust and investment fees, and mortgage banking. Noninterest income was also
bolstered by above-average equity gains, driven by gains in our private equity
businesses.

Mortgage banking noninterest income was $3.1 billion, up $261 million from
third quarter 2012, on $125billion of originations, compared with $139
billion of originations in third quarter. During the fourth quarter, the
Company retained on balance sheet 1-4 family conforming first mortgage loans,
forgoing approximately $340 million of fee revenue that could have been
generated had the loans been originated for sale during the quarter along with
other agency conforming loan production. The Company provided $379million for
mortgage loan repurchase losses, compared with $462 million in third quarter
(included in net gains from mortgage loan origination/sales activities). Net
mortgage servicing rights (MSRs) results were $220 million, up from
$142million in third quarter 2012, due primarily to MSRs valuation
adjustments made in the third quarter for increased servicing and foreclosure
costs. The ratio of MSRs to related loans serviced for others was 67 basis
points and the average note rate on the servicing portfolio was 4.77 percent.
The unclosed pipeline at December 31, 2012 was $81 billion, compared with $97
billion at September30,2012.

The Company had net unrealized securities gains of $11.9 billion at December
31, 2012, compared with $12.4billion at September 30, 2012. Period-end AFS
securities balances increased $5.8 billion.

Noninterest Expense

Noninterest expense increased $388 million, or 3 percent, from fourth quarter
2011 and increased $784million from third quarter 2012. The increase in
noninterest expense from the prior quarter was due primarily to $644million
in operating losses from an incremental accrual to fully reserve for the costs
associated with the IFR settlement (discussed below) and additional
remediation-related costs, and $250million for a contribution to the Wells
Fargo Foundation. The Company continued to operate within its targeted
efficiency ratio range of 55 to 59 percent, with an efficiency ratio of
58.8percent in fourth quarter 2012, compared with 57.1 percent in third
quarter 2012 and 60.7percent in fourth quarter 2011. The Company is well
positioned to remain within this targeted range in 2013.

Independent Foreclosure Review Settlement

On January 7, 2013, the Company announced that, along with nine other mortgage
servicers, it entered into settlement agreements with the Office of the
Comptroller of the Currency (OCC) and the Federal Reserve Board (FRB) that
would end their IFR programs created by Article VII of an April 2011
Interagency Consent Order and replace it with an accelerated remediation
process.

In aggregate, the servicers have agreed to make direct, cash payments of $3.3
billion and to provide $5.2billion in additional assistance, such as loan
modifications, to consumers. Wells Fargo’s portion of the cash settlement is
$766 million, which is based on the proportionate share of Wells
Fargo-serviced loans in the overall IFR population. Wells Fargo recorded a
pre-tax charge of $644 million in fourth quarter 2012 to fully reserve for its
cash payment portion of the settlement and additional remediation-related
costs. The Company also committed an additional $1.2 billion to foreclosure
prevention actions. This commitment did not result in any charge as the
Company believes that this commitment is covered through the existing
allowance for credit losses and the nonaccretable difference relating to the
purchased credit-impaired loan portfolios. With this settlement, the Company
will no longer incur costs associated with the independent foreclosure
reviews, which had recently approximated $125 million per quarter for external
consultants and additional staffing.

“In addition to the benefit to our customers, we are very pleased to have put
this legacy issue behind us and to have removed the future costs associated
with independent foreclosure reviews,” said Stumpf.

Taxes

Our effective tax rate was 27.4 percent for the fourth quarter 2012, compared
with 31.3 percent for the fourth quarter 2011 and 32.5 percent for the year
ended December 31, 2012, compared with 31.9 percent for the year ended
December 31, 2011. The lower tax rate in the fourth quarter 2012 was primarily
attributable to the realization, for tax purposes, of a discrete $332 million
benefit resulting from the surrender of previously written-down Wachovia life
insurance investment.

Loans

Total loans were $799.6 billion at December 31, 2012, up $16.9 billion from
September30,2012, including double-digit annualized loan growth in
commercial banking, credit card, mortgage, and retail brokerage. Included in
the total loan growth was $9.7 billion of 1-4 family conforming first mortgage
production retained on the balance sheet. The growth in core loan portfolios
more than offset the reduction in the non-strategic/liquidating portfolios,
which declined $4.1 billion in the quarter.

Average total loans of $787.2 billion in fourth quarter 2012 grew $18.6
billion, or 2 percent, from fourth quarter 2011. On a linked-quarter basis,
average loans increased $10.5 billion, or 5 percent (annualized). Average
commercial and commercial real estate loans increased $10.8 billion, or 3
percent, from fourth quarter 2011 and increased $1.6 billion, or 2 percent
(annualized), on a linked-quarter basis. Average consumer loans increased $7.8
billion, or 2 percent, from a year ago and increased $8.9 billion, or 8
percent (annualized), on a linked-quarter basis.

                                                                   
             December 31, 2012                       September 30, 2012
(in          Core        Liquidating   Total     Core      Liquidating   Total
millions)                    (1)                                     (1)
Commercial     $ 358,028   3,170         361,198     348,696   3,836         352,532
Consumer      346,984   91,392        438,376   335,278   94,820        430,098
Total        $ 705,012   94,562        799,574   683,974   98,656        782,630
loans
                                                                                     
Change
from prior   $ 21,038    (4,094)       16,944    11,903    (4,472)       7,431
quarter:
                                                                                     
(1) See NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS table for additional information on
non-strategic/liquidating loan portfolios. Management believes that the above information
provides useful disclosure regarding the Company’s ongoing loan portfolios.


Deposits

Average core deposits of $928.8 billion for fourth quarter 2012 increased
$63.9 billion, or 7 percent, from fourth quarter 2011. On a linked-quarter
basis, average core deposits grew $33.5 billion, or 15 percent (annualized).
Average mortgage escrow deposits were $42.2 billion for fourth quarter 2012,
up $7.2 billion from fourth quarter 2011 and up $2.2 billion on a
linked-quarter basis. Excluding mortgage escrow balances, total average core
deposits grew 7 percent from fourth quarter 2011 and 15 percent (annualized)
on a linked-quarter basis. Average core checking and savings deposits were 94
percent of average core deposits, up from 93 percent a year ago. The average
deposit cost for fourth quarter 2012 was 16 basis points, compared with
18basis points in third quarter 2012. Average core deposits were 118percent
of average loans, up slightly from third quarter 2012.

Capital

Capital increased in the fourth quarter, with Tier 1 common equity reaching
$109.1 billion under Basel I, or 10.12percent of risk-weighted assets, up
from 9.46 percent in fourth quarter 2011 and 9.92 percent in third quarter
2012. Under current Basel III proposals, the Tier I common equity ratio was an
estimated 8.18percent^8. In the fourth quarter, the Company purchased
approximately 42 million shares of its common stock and an additional
estimated 6 million shares through a forward repurchase transaction expected
to settle in first quarter 2013, and paid a quarterly common stock dividend of
$0.22 per share.

   
     Estimated based on management’s current interpretation of the Basel III
     capital rules proposed by federal banking agencies in notices of proposed
^8   rulemaking announced in June 2012. The proposed rules and interpretations
     and assumptions used in estimating Basel III calculations are subject to
     change depending on final promulgation of Basel III capital rules.
     

                                                           
                                      Dec. 31,     Sept. 30,   Dec. 31,
(as a percent of total                2012        2012        2011
risk-weighted assets)
Ratios under Basel I (1):                  
Tier 1 common equity (2)                 10.12      %   9.92          9.46
Tier 1 capital                           11.75          11.50         11.33
Tier 1 leverage                          9.47           9.40          9.03
                                                         
                                                                      
(1)December 31, 2012, ratios are preliminary.
(2)See tables on TIER 1 COMMON EQUITY for more information on Tier 1 common
equity.


Credit Quality

“Wells Fargo's risk profile continued to improve in 2012,” said Chief Risk
Officer Mike Loughlin. “Credit losses were $9.0 billion in 2012, compared with
$11.3 billion in 2011—an improvement of $2.3 billion or 20percent. In
addition, year-over-year, our nonperforming assets declined by $1.5 billion or
6 percent, our consumer 30 – 89 days past due was down $1.8 billion or 22
percent, our liquidating portfolios declined by $17.8 billion or 16 percent,
and the Pick-a-Pay PCI portfolio continued to perform better than we estimated
at the time we acquired Wachovia. Reflecting continued, improved credit
performance, we released $250million in loan loss reserves in the fourth
quarter. Absent significant deterioration in the economy, we continue to
expect future reserve releases in 2013, though at a lower level than in 2012,”
said Loughlin.

Reported credit metrics for the quarter were affected by the completion of
implementation of the OCC guidance issued in third quarter 2012. In the fourth
quarter, we applied the updated OCC guidance to previously modified loans to
consumers who have been discharged in bankruptcy. Fourth quarter adjustments
associated with the OCC guidance affected nonperforming loans and net
charge-offs as follows^9:

  *$394 million reclassification of performing consumer loans to nonaccrual
    status
  *$321 million increase in net loan charge-offs, fully covered by loan loss
    reserves

   
     Reclassification to nonaccrual loans includes $264 million and the
^9   increase in net loan charge offs include $271 million from the completion
     of implementation of OCC guidance.
     

Net Loan Charge-offs

Net loan charge-offs improved to $2.1 billion in fourth quarter 2012, or 105
basis points of average loans, compared with $2.6 billion in fourth quarter
2011, or 136 basis points of average loans. On a linked-quarter basis, net
loan charge-offs improved by $277 million, or 16 basis points of average
loans.

Excluding the $321 million in charge-offs resulting from the adjustments
associated with the OCC guidance, net charge-offs in fourth quarter 2012 were
$1.8 billion or 89 basis points with commercial losses of $255million, or 29
basis points, and consumer losses of $1.5 billion or 138 basis points^10. Full
year 2012 credit losses (excluding losses from the OCC guidance
implementation) declined $3.2billion or 28 percent from 2011.

    
    Management believes that the presentation in this news release of
^10 information excluding the impact of the OCC guidance provides useful
    disclosure regarding the credit quality of the Company’s loan portfolios.
    

                                                                       
Net Loan
Charge-Offs
                                                                
                                                           Quarter ended
               Dec. 31, 2012            Sept. 30, 2012         June 30, 2012
                                 As a                      As a                      As a
                   Net loan      % of          Net         % of          Net         % of
                                               loan                      loan
                   charge-      average       charge-    average       charge-    average
($ in           offs        loans      offs      loans      offs      loans
millions)                        (1)                       (1)                       (1)
                                                                                             
Commercial:
Commercial
and                $ 209         0.46      %   $ 131       0.29      %   $ 249       0.58    %
industrial
Real estate          38          0.14            54        0.21            81        0.31
mortgage
Real estate          (18   )     (0.43 )         1         0.03            17        0.40
construction
Lease                2           0.04            1         0.03            -         -
financing
Foreign          24         0.25           30        0.29           11        0.11
Total            255        0.29           217       0.24           358       0.42
commercial
                                                                                             
Consumer:
Real estate
1-4 family           649         1.05            673       1.15            743       1.30
first
mortgage
Real estate
1-4 family           690         3.57            1,036     5.17            689       3.38
junior lien
mortgage
Credit card          222         3.71            212       3.67            240       4.37
Other
revolving        265        1.21           220       1.00           170       0.79
credit and
installment
Total            1,826      1.68           2,141     2.01           1,842     1.76
consumer
Total           $ 2,081      1.05      %   $ 2,358     1.21      %   $ 2,200     1.15    %
                                                                
                                                                                             
(1)Quarterly net charge-offs as a percentage of average loans are annualized. See
explanation in PURCHASED CREDIT-IMPAIRED (PCI) LOANS section of the accounting for purchased
credit-impaired (PCI) loans and the impact on selected financial ratios.
                                                                                             

Nonperforming Assets

Nonperforming assets decreased by $744 million in the quarter, which included
a $394 million increase in nonperforming loans due to the impact of the OCC
guidance, ending the quarter at $24.5 billion, compared with $25.3 billion in
third quarter 2012. Nonaccrual loans decreased to $20.5 billion from
$21.0billion in third quarter. Foreclosed assets were $4.0 billion, down from
$4.2 billion in third quarter 2012.

                                                                         
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
                                                               
                Dec. 31, 2012         Sept. 30, 2012        June 30, 2012
                                As a                   As a                      As a
                                 % of                     % of                      % of
                    Total        total       Total        total       Total         total
($ in            balances   loans    balances   loans    balances    loans
millions)
                                                                                          
Commercial:
Commercial
and                 $ 1,422      0.76    %   $ 1,404      0.79    %   $ 1,549       0.87  %
industrial
Real estate           3,322      3.12          3,599      3.44          3,832       3.63
mortgage
Real estate           1,003      5.93          1,253      7.08          1,421       8.08
construction
Lease                 27         0.22          49         0.40          43          0.34
financing
Foreign           50         0.13         66         0.17         79          0.20
Total             5,824      1.61         6,371      1.81         6,924       1.96
commercial
                                                                                          
Consumer:
Real estate
1-4 family            11,455     4.58          11,195     4.65          10,368      4.50
first
mortgage
Real estate
1-4 family            2,922      3.87          3,140      4.02          3,091       3.82
junior lien
mortgage
Other
revolving         285        0.32         338        0.39         195         0.22
credit and
installment
Total             14,662     3.34         14,673     3.41         13,654      3.24
consumer (1)
Total
nonaccrual        20,486     2.56         21,044     2.69         20,578      2.65
loans
                                                                                          
Foreclosed
assets:
GNMA                  1,509                    1,479                    1,465
Non GNMA          2,514                   2,730                   2,842
Total
foreclosed        4,023                   4,209                   4,307
assets
Total
nonperforming    $ 24,509     3.07    %   $ 25,253     3.23    %   $ 24,885      3.21  %
assets
                                                                                          
Change from
prior
quarter:
Total
nonaccrual          $ (558)                  $ 466                    $ (1,448)
loans
Total
nonperforming         (744)                    368                      (1,758)
assets
                                                               
                                                                                          
(1)Includes $1.4 billion at September 30, 2012, resulting from implementation of OCC
guidance issued in third quarter 2012, which requires consumer loans discharged in
bankruptcy to be placed on nonaccrual status and written down to net realizable
collateral value, regardless of their delinquency status.
                                                                                          

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government
insured/guaranteed) totaled $1.4billion at December 31, 2012, compared with
$1.5 billion at September 30, 2012. Loans 90 days or more past due and still
accruing with repayments insured by the Federal Housing Administration (FHA)
or predominantly guaranteed by the Department of Veterans Affairs (VA) for
mortgages and the U.S. Department of Education for student loans under the
Federal Family Education Loan Program were $21.8billion at December 31, 2012,
up slightly from $21.4 billion at September 30, 2012.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded
commitments, totaled $17.5 billion at December 31, 2012, down from $17.8
billion at September 30, 2012. The allowance reflected estimated loan losses
attributable to Hurricane Sandy. The allowance coverage to total loans was
2.19 percent, compared with 2.27 percent in third quarter 2012. The allowance
covered 2.1 times annualized fourth quarter net charge-offs, compared with 1.9
times in the prior quarter. The allowance coverage to nonaccrual loans was 85
percent at December31, 2012, compared with 85 percent at September 30, 2012.
“We believe the allowance was appropriate for losses inherent in the loan
portfolio at December 31, 2012,” said Loughlin.

Business Segment Performance

Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:

                                                        
                                    Quarter ended
                                       Dec. 31,   Sept. 30,   Dec. 31,
(in millions)                         2012    2012        2011
Community Banking                      $  2,869     2,740         2,509
Wholesale Banking                         2,032     1,993         1,636
Wealth, Brokerage and Retirement      351     338         311
                                                                  

More financial information about the business segments is in OPERATING SEGMENT
RESULTS table and FIVE QUARTER OPERATING SEGMENT RESULTS table.

Community Banking offers a complete line of diversified financial products and
services for consumers and small businesses. These products include
investment, insurance and trust services in 39 states and D.C., and mortgage
and home equity loans in all 50 states and D.C. through its Regional Banking
and Wells Fargo Home Lending business units.

                                                     
Selected Financial Information
                                  Quarter ended
                                  Dec. 31,    Sept. 30,    Dec. 31,
(in millions)                   2012     2012        2011
Total revenue                     $ 13,782     13,110        13,009
Provision for credit losses         1,757      1,627         2,025
Noninterest expense                 8,033      7,402         7,313
Segment net income                  2,869      2,740         2,509
                                                             
(in billions)
Average loans                       493.1      485.3         490.6
Average assets                      794.2      765.1         753.3
Average core deposits           608.9    594.5       568.4
                                                             

Community Banking reported net income of $2.9 billion, up $360 million, or 14
percent, from fourth quarter 2011. Revenue increased $773 million, or 6
percent, primarily due to higher mortgage banking revenue and above-average
quarterly equity gains, partially offset by lower net interest income.
Noninterest expense increased $720 million, or 10 percent, from fourth quarter
2011, largely the result of costs associated with the IFR settlement and a
$250 million contribution to the Wells Fargo Foundation, partially mitigated
by lower employee benefits costs. The provision for credit losses was $268
million lower than a year ago due to improved portfolio performance. Net
income included a benefit of $332 million associated with the realization for
tax purposes of a previously written-down Wachovia life insurance investment.

Net income was up $129 million, or 5 percent, from third quarter 2012. Revenue
increased $672 million, or 5 percent, from third quarter 2012, primarily due
to above-average quarterly equity gains and higher mortgage banking revenue.
Noninterest expense increased $631million, or 9 percent, from third quarter,
largely due to costs associated with the IFR settlement and a $250 million
contribution to the Wells Fargo Foundation, partially offset by lower employee
benefit costs. The provision for credit losses increased $130million from
third quarter, as credit improvement was more than offset by additional
charge-offs from the completion of implementation of the OCC guidance issued
in third quarter 2012. Net income also included a benefit of $332 million
associated with the realization for tax purposes of a previously written-down
Wachovia life insurance investment.

Regional Banking

  *Retail banking

       *Retail Bank household cross-sell ratio of 6.05 products per
         household, up from 5.93 year-over-year^11
       *Consumer checking accounts essentially flat year-over-year^11
       *Consumer credit card, lines of credit and loan product solutions
         (sales) in the retail banking stores in 2012 were up more than 50
         percent from 2011
       *Partner referrals that resulted in a sale in 2012 were up more than
         40 percent from 2011
       *Customers rated their experience with Wells Fargo stores and contact
         centers at an all-time high, based on fourth quarter survey results

  *Small Business/Business Banking

       *Business checking accounts up a net 3.7 percent year-over-year^11
       *Business Direct credit card, lines of credit and loan product
         solutions (primarily under $100,000 sold through our retail banking
         stores) in 2012 were up more than 50 percent from 2011
       *$16.0 billion in net new loan commitments to small business customers
         (primarily with annual revenues less than $20 million) in 2012, up
         over 30 percent from 2011
       *Wells Fargo approved a record $1.24 billion in SBA 7(a) loans in 2012
         and, for the fourth consecutive year, is the No. 1 SBA 7(a) lender in
         dollar volume in the U.S. (U.S. SBA data, federal fiscal years
         2009–2012)

  *Online and Mobile Banking

       *21.4 million active online customers, up 5 percent year-over-year^11
       *9.4 million active mobile customers, up 33 percent year-over-year^11
       *Wells Fargo announced the nationwide expansion of Wells Fargo
         Mobile^® Deposit
       *New Wells Fargo for iPad app which includes access to Wells Fargo
         accounts, transfers, payments, Wells Fargo Mobile^® Deposit and
         brokerage access and trading
       *Expansion of our Send & Receive Money service which now makes it
         possible to send money to anyone with an eligible U.S. deposit
         account using an email address or mobile number

Consumer Lending Group

  *Home Lending

       *Originations of $125 billion, compared with $139 billion in prior
         quarter
       *Applications of $152 billion, compared with $188 billion in prior
         quarter
       *Application pipeline of $81 billion at quarter end, compared with $97
         billion at September30,2012
       *Residential mortgage servicing portfolio of $1.9 trillion

  *Other Consumer Lending

       *Credit card penetration in retail banking households rose to 33.1
         percent^11, up from 32.1 percent in prior quarter and 29.2 percent in
         prior year
       *Auto originations of $5.4 billion, down 15 percent from prior quarter
         and up 8 percent from prior year

^11 Data as of November 2012. Comparisons are November 2012 compared with
November 2011.

Wholesale Banking  provides financial solutions to businesses across the
United States and globally with annual sales generally in excess of $20
million. Products & business segments include Middle Market Commercial
Banking, Government and Institutional Banking, Corporate Banking, Commercial
Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance,
International, Real Estate Capital Markets, Commercial Mortgage Servicing,
Corporate Trust, Equipment Finance, Wells Fargo Securities, Principal
Investments, Asset Backed Finance, and Asset Management.


Selected Financial Information
                                        Quarter ended
                                           Dec. 31,   Sept. 30,   Dec. 31,
(in millions)                             2012    2012        2011
Total revenue                              $  5,993     5,949         5,416
Provision (reversal of provision)             60        (57)          31
for credit losses
Noninterest expense                           3,007     2,908         2,938
Segment net income                            2,032     1,993         1,636
                                                                      
(in billions)
Average loans                                 279.2     277.1         265.1
Average assets                                489.7     490.7         458.3
Average core deposits                     240.7   225.4       223.2
                                                                      

Wholesale Banking reported net income of $2.0 billion, up $396 million, or 24
percent, from fourth quarter 2011 led by higher pre-tax pre-provision profit
(PTPP)^12 and lower net charge-offs. Revenue increased $577million, or 11
percent, from fourth quarter 2011 driven by broad-based business growth,
including acquisitions and solid loan and deposit growth. Noninterest expense
increased $69 million, or 2 percent, from fourth quarter 2011 due to higher
personnel expenses related to revenue growth and higher non-personnel expenses
related to growth initiatives and compliance and regulatory requirements.
Despite an improvement of $71 million in net charge-offs, the provision for
credit losses increased $29million from fourth quarter 2011, due to a lower
level of reserve release. The fourth quarter 2012 provision included a $50
million reserve release, compared with a $150 million reserve release a year
ago.

^12 See footnote (2) in SUMMARY FINANCIAL DATA table for more information on
pre-tax pre-provision profit.

Net income was up $39 million, or 2 percent, from third quarter 2012. Revenue
of $6.0 billion increased $44 million, or 1 percent, from third quarter 2012
as strong growth across many businesses, including capital finance, commercial
banking, commercial real estate, corporate banking and investment banking was
partially offset by lower sales and trading, equity funds gains and lower PCI
resolutions. The Wholesale Banking businesses continued to drive higher loan
growth and meet customer demand with average loan balances rising to $279
billion in the fourth quarter. Noninterest expense increased $99million, or
3percent, from third quarter 2012 on higher personnel expense and operating
losses. The provision for credit losses was $60 million in fourth quarter,
compared with a net reversal of $57 million in the third quarter. This was due
to both increased net loan charge-offs and a decrease in reserve release.

  *Five percent average loan and 7 percent average asset growth in fourth
    quarter 2012 compared to fourth quarter 2011. The growth came from nearly
    all portfolios, including asset backed finance, capital finance,
    commercial banking, commercial real estate, corporate banking and
    government and institutional banking
  *Ten consecutive quarters of average loan growth in Commercial Banking
  *Fourth quarter 2012 average core deposits, up 8 percent from fourth
    quarter 2011
  *Investment Banking full year revenue from commercial and corporate
    customers increased 30 percent from 2011 full year due to attractive
    capital markets conditions and continued momentum in cross selling
  *Wholesale businesses established a branch presence in Toronto, Canada in
    the quarter, expanding capabilities
  *Wells Fargo Asset Management announced that it had acquired a minority
    ownership stake in privately held The Rock Creek Group, a Washington,
    D.C.-based fund of hedge funds firm with approximately $7billion in
    assets under management
  *Cross-sell of 6.8 products per relationship, up from 6.7 in prior
    quarter^13

^13 As of September 2012.

Wealth, Brokerage and Retirement  provides a full range of financial advisory
services to clients using a planning approach to meet each client's needs.
Wealth Management provides affluent and high net worth clients with a complete
range of wealth management solutions, including financial planning, private
banking, credit, investment management and trust. Abbot Downing, a Wells Fargo
business, provides comprehensive wealth management services to ultra high net
worth families and individuals as well as their endowments and foundations.
Brokerage serves customers' advisory, brokerage and financial needs as part of
one of the largest full-service brokerage firms in the United States.
Retirement is a national leader in providing institutional retirement and
trust services (including 401(k) and pension plan record keeping) for
businesses, retail retirement solutions for individuals, and reinsurance
services for the life insurance industry.

                                                     
Selected Financial Information
                                  Quarter ended
                                  Dec. 31,    Sept. 30,    Dec. 31,
(in millions)                    2012    2012        2011
Total revenue                     $  3,094     3,033         3,042
Provision for credit losses          15        30            20
Noninterest expense                  2,513     2,457         2,520
Segment net income                   351       338           311
                                                             
(in billions)
Average loans                        43.3      42.5          42.8
Average assets                       171.7     163.8         160.6
Average core deposits            143.4   136.7       135.2
                                                             

Wealth, Brokerage and Retirement reported net income of $351 million, up 13
percent from fourth quarter 2011. Revenue was $3.1 billion, up 2 percent from
fourth quarter 2011. Fourth quarter 2011 results included a $153 million gain
on the sale of the H.D. Vest business. Excluding the gain on the sale of H.D.
Vest and $46 million in lower gains on deferred compensation plan investments
(offset in compensation expense), revenue was up 9 percent, predominantly due
to higher asset-based fees and brokerage transaction revenue, partially offset
by lower net interest income. Total provision for credit losses decreased $5
million from fourth quarter 2011. The provision in the fourth quarter 2012 and
fourth quarter 2011 included an $8million and a $12 million credit reserve
release, respectively. Noninterest expense was flat compared with the fourth
quarter 2011. Apart from a $41 million decrease in deferred compensation plan
expense (offset in trading income), noninterest expense increased 1 percent,
primarily due to higher broker commissions.

Net income was up 4 percent from third quarter 2012. Revenue was up 2 percent
from third quarter 2012. Excluding $32 million in lower gains on deferred
compensation plan investments, revenue was up 3 percent largely due to higher
asset-based fees. Total provision for credit losses decreased $15 million from
third quarter 2012; the provision in the third quarter 2012 included a $10
million credit reserve release. Noninterest expense increased 2 percent from
the third quarter 2012 driven by higher personnel expense, primarily increased
incentives, partially offset by lower deferred compensation expense and
reduced non-personnel costs. Apart from a $34 million decrease in deferred
compensation, noninterest expense increased 4 percent.

Retail Brokerage

  *Client assets of $1.2 trillion, up 8 percent from prior year
  *Managed account assets increased $50 billion, or 20 percent, from prior
    year driven by strong net flows and market performance
  *Strong deposit growth, with average balances up 9 percent from prior year
  *Wells Fargo launched an iPad app in December 2012, which, among other
    features, enables Wells Fargo Advisors clients to monitor accounts, get
    real-time quotes and execute trades; trading capability was also added for
    mobile brokerage clients via the Wells Fargo Mobile App and wf.com

Wealth Management

  *Client assets of $204 billion, up 3 percent from prior year

Retirement

  *Institutional Retirement plan assets of $266 billion, up 13 percent from
    prior year
  *IRA assets of $297 billion, up 11 percent from prior year

Conference Call

The Company will host a live conference call on Friday, January 11, at 7 a.m.
PST (10 a.m. EST). To access the call, please dial 866-872-5161 (U.S. and
Canada) or 706-643-1962 (International). No password is required. The call is
also available online at wellsfargo.com/invest_relations/earnings and
http://us.meeting-stream.com/wellsfargocompany_011113.

A replay of the conference call will be available beginning at approximately
noon PST (3 p.m. EST) on January11 through Friday, January 18. Please dial
855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter
Conference ID #69450441. The replay will also be available online at
wellsfargo.com/invest_relations/earnings.

Cautionary Statement about Forward-Looking Information

In accordance with the Private Securities Litigation Reform Act of 1995, we
caution you that this news release contains forward-looking statements about
our future financial performance and business. We make forward-looking
statements when we use words such as “believe,” “expect,” “anticipate,”
“estimate,” “target,” “should,” “may,” “can,” “will,” “outlook,” “project,”
“appears” or similar expressions. Forward-looking statements in this news
release include, among others, statements about: (i) future credit quality and
performance, and the appropriateness of the allowance for loan losses,
including our current expectation of future reserve releases; (ii) our
expectations regarding noninterest expense and our targeted efficiency ratio;
and (iii)our estimate regarding our Tier 1 common equity ratio under proposed
Basel III capital rules as of December 31, 2012.

Do not unduly rely on forward-looking statements as actual results could
differ materially from expectations. Forward-looking statements speak only as
of the date made, and we do not undertake to update them to reflect changes or
events that occur after that date. Several factors could cause actual results
to differ materially from expectations including: current and future economic
and market conditions, including the effects of further declines in housing
prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, and
the sovereign debt crisis and economic difficulties in Europe; our capital
requirements (including under regulatory capital standards as determined and
interpreted by applicable regulatory authorities such as the proposed Basel
III capital rules) 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 Wall Street Reform and
Consumer Protection Act), as well as our ability to mitigate the loss of
revenue and income from financial services reform and other regulation and
legislation; the extent of success in our loan modification efforts, including
the effects of regulatory requirements, or changes in regulatory requirements,
relating to loan modifications; the amount of mortgage loan repurchase demands
that we receive and our ability to satisfy any such demands without having to
repurchase loans related thereto or otherwise indemnify or reimburse third
parties; negative effects relating to mortgage servicing and foreclosures, as
well as effects associated with our settlement with the Department of Justice
and other federal and state government entities related to our mortgage
servicing and foreclosure practices, including changes in our procedures or
practices and/or industry standards or practices, regulatory or judicial
requirements, penalties or fines, increased servicing and other costs or
obligations, including loan modification requirements, or delays or
moratoriums on foreclosures; our ability to realize our efficiency ratio
target as part of our expense management initiatives when and in the range
targeted, 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; a failure in or
breach of our operational or security systems or infrastructure, or those of
our third party vendors and other service providers; recognition of
other-than-temporary impairment on securities held in our available-for-sale
portfolio; the effect of the current low interest rate environment or changes
in interest rates on our net interest margin and our mortgage originations,
mortgage servicing rights and mortgages held for sale; hedging gains or
losses; disruptions in the capital markets and reduced investor demand for
mortgage loans; our ability to sell more products to our customers; the effect
of fluctuations in stock market prices on fee income from our brokerage, asset
and wealth management businesses; our election to provide support to our money
market funds; changes in the value of our venture capital investments; changes
in our accounting policies or in accounting standards or in how accounting
standards are to be applied; changes in our credit ratings and changes in the
credit ratings of our customers or counterparties; mergers and acquisitions;
federal and state regulations; reputational damage from negative publicity,
fines, penalties and other negative consequences from regulatory violations
and legal actions; the loss of checking and saving account deposits to other
investments such as the stock market; and fiscal and monetary policies of the
Federal Reserve Board. There is no assurance that our allowance for credit
losses will be adequate to cover future credit losses, especially if housing
prices decline and unemployment worsens. Increases in loan charge-offs or in
the allowance for credit losses and related provision expense could materially
adversely affect our financial results and condition. 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, 2011, as filed with the SEC and
available on the SEC’s website at www.sec.gov. Any factor described above or
in our SEC reports could, by itself or together with one or more other
factors, adversely affect our financial results and condition.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified,
community-based financial services company with $1.4 trillion in assets.
Founded in 1852 and headquartered in San Francisco, Wells Fargo provides
banking, insurance, investments, mortgage, and consumer and commercial finance
through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com),
and has offices in more than 35 countries to support the bank’s customers who
conduct business in the global economy. With more than 265,000 team members,
Wells Fargo serves one in three households in the United States. Wells Fargo &
Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest
corporations. Wells Fargo’s vision is to satisfy all our customers’ financial
needs and help them succeed financially.

                                                                   
Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
                                                                         
                                                                         Pages
                                                                         
Summary Information
Summary Financial Data                                                   18-19
                                                                         
Income
Consolidated Statement of Income                                         20
Consolidated Statement of Comprehensive Income                           21
Condensed Consolidated Statement of Changes in Total Equity              21
Five Quarter Consolidated Statement of Income                            22
Average Balances, Yields and Rates Paid (Taxable-Equivalent              23-24
Basis)
Noninterest Income and Noninterest Expense                               25-26
                                                                         
Balance Sheet
Consolidated Balance Sheet                                               27-28
Five Quarter Average Balances, Yields and Rates Paid                     29
(Taxable-Equivalent Basis)
Securities Available for Sale                                            30
                                                                         
Loans
Loans                                                                    30
Nonperforming Assets                                                     31
Loans 90 Days or More Past Due and Still Accruing                        32
Purchased Credit-Impaired Loans                                          33-35
Pick-A-Pay Portfolio                                                     36
Non-Strategic and Liquidating Loan Portfolios                            37
Home Equity Portfolios                                                   37
Changes in Allowance for Credit Losses                                   38-39
                                                                         
Equity
Tier 1 Common Equity                                                     40
                                                                         
Operating Segments
Operating Segment Results                                                41-42
                                                                         
Other
Mortgage Servicing and other related data                                43-45
                                                                   

                                                                              
Wells Fargo &
Company and
Subsidiaries
SUMMARY
FINANCIAL                                                             
DATA
    
                   Quarter ended December      %           Year ended Dec. 31,         %
                    31,
($ in
millions,
except per       2012         2011       Change    2012        2011        Change
share
amounts)
For the
Period
Wells Fargo       $ 5,090           4,107       24     %   $ 18,897        15,869        19     %
net income
Wells Fargo
net income          4,857           3,888       25           17,999        15,025        20
applicable to
common stock
Diluted
earnings per        0.91            0.73        25           3.36          2.82          19
common share
Profitability
ratios
(annualized):
Wells Fargo
net income to       1.46        %   1.25        17           1.41          1.25          13
average
assets (ROA)
Wells Fargo
net income
applicable to
common stock
to average          13.35           11.97       12           12.95         11.93         9
Wells Fargo
common
stockholders'
equity (ROE)
Efficiency          58.8            60.7        (3   )       58.5          61.0          (4   )
ratio (1)
Total revenue     $ 21,948          20,605      7          $ 86,086        80,948        6
Pre-tax
pre-provision       9,052           8,097       12           35,688        31,555        13
profit (PTPP)
(2)
Dividends
declared per        0.22            0.12        83           0.88          0.48          83
common share
Average
common shares       5,272.4         5,271.9     -            5,287.6       5,278.1       -
outstanding
Diluted
average             5,338.7         5,317.6     -            5,351.5       5,323.4       1
common shares
outstanding
Average loans     $ 787,210         768,563     2          $ 775,224       757,144       2
Average             1,387,056       1,306,728   6            1,341,635     1,270,265     6
assets
Average core        928,824         864,928     7            893,937       826,735       8
deposits (3)
Average
retail core         646,145         606,810     6            629,320       595,851       6
deposits (4)
Net interest        3.56        %   3.89        (8   )       3.76          3.94          (5   )
margin
At Period End
Securities
available for     $ 235,199         222,613     6          $ 235,199       222,613       6
sale
Loans               799,574         769,631     4            799,574       769,631       4
Allowance for       17,060          19,372      (12  )       17,060        19,372        (12  )
loan losses
Goodwill            25,637          25,115      2            25,637        25,115        2
Assets              1,422,968       1,313,867   8            1,422,968     1,313,867     8
Core deposits       945,749         872,629     8            945,749       872,629       8
(3)
Wells Fargo
stockholders'       157,554         140,241     12           157,554       140,241       12
equity
Total equity        158,911         141,687     12           158,911       141,687       12
Capital
ratios:
Total equity        11.17       %   10.78       4            11.17         10.78         4
to assets
Risk-based
capital (5):
Tier 1              11.75           11.33       4            11.75         11.33         4
capital
Total capital       14.63           14.76       (1   )       14.63         14.76         (1   )
Tier 1              9.47            9.03        5            9.47          9.03          5
leverage (5)
Tier 1 common       10.12           9.46        7            10.12         9.46          7
equity (5)(6)
Common shares       5,266.3         5,262.6     -            5,266.3       5,262.6       -
outstanding
Book value
per common        $ 27.64           24.64       12         $ 27.64         24.64         12
share
Common stock
price:
High                36.34           27.97       30           36.60         34.25         7
Low                 31.25           22.61       38           27.94         22.58         24
Period end          34.18           27.56       24           34.18         27.56         24
Team members
(active,            269,200         264,200     2            269,200       264,200       2
full-time
equivalent)
                                                                   
                                                                                                
(1)The efficiency ratio is noninterest expense divided by total revenue (net interest income
and noninterest income).
(2)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.
(3)Core deposits are noninterest-bearing deposits, interest-bearing checking, savings
certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar
sweep balances).
(4)Retail core deposits are total core deposits excluding Wholesale Banking core deposits and
retail mortgage escrow deposits.
(5)The December 31, 2012, ratios are preliminary.
(6)See the "Five Quarter Tier 1 Common Equity Under Basel I" table for additional information.
                                                                                                

                                                                    
Wells Fargo &
Company and
Subsidiaries
FIVE QUARTER
SUMMARY                                                         
FINANCIAL
DATA
                
                   Quarter ended
                    Dec. 31,        Sept. 30,     June 30,      Mar. 31,      Dec. 31,
($ in
millions,
except per       2012         2012        2012        2012        2011
share
amounts)
For the
Quarter
Wells Fargo       $ 5,090           4,937         4,622         4,248         4,107
net income
Wells Fargo
net income          4,857           4,717         4,403         4,022         3,888
applicable to
common stock
Diluted
earnings per        0.91            0.88          0.82          0.75          0.73
common share
Profitability
ratios
(annualized):
Wells Fargo
net income to       1.46        %   1.45          1.41          1.31          1.25
average
assets (ROA)
Wells Fargo
net income
applicable to
common stock
to average          13.35           13.38         12.86         12.14         11.97
Wells Fargo
common
stockholders'
equity (ROE)
Efficiency          58.8            57.1          58.2          60.1          60.7
ratio (1)
Total revenue     $ 21,948          21,213        21,289        21,636        20,605
Pre-tax
pre-provision       9,052           9,101         8,892         8,643         8,097
profit (PTPP)
(2)
Dividends
declared per        0.22            0.22          0.22          0.22          0.12
common share
Average
common shares       5,272.4         5,288.1       5,306.9       5,282.6       5,271.9
outstanding
Diluted
average             5,338.7         5,355.6       5,369.9       5,337.8       5,317.6
common shares
outstanding
Average loans     $ 787,210         776,734       768,223       768,582       768,563
Average             1,387,056       1,354,340     1,321,584     1,302,921     1,306,728
assets
Average core        928,824         895,374       880,636       870,516       864,928
deposits (3)
Average
retail core         646,145         630,053       624,329       616,569       606,810
deposits (4)
Net interest        3.56        %   3.66          3.91          3.91          3.89
margin
At Quarter
End
Securities
available for     $ 235,199         229,350       226,846       230,266       222,613
sale
Loans               799,574         782,630       775,199       766,521       769,631
Allowance for       17,060          17,385        18,320        18,852        19,372
loan losses
Goodwill            25,637          25,637        25,406        25,140        25,115
Assets              1,422,968       1,374,715     1,336,204     1,333,799     1,313,867
Core deposits       945,749         901,075       882,137       888,711       872,629
(3)
Wells Fargo
stockholders'       157,554         154,679       148,070       145,516       140,241
equity
Total equity        158,911         156,059       149,437       146,849       141,687
Capital
ratios:
Total equity        11.17       %   11.35         11.18         11.01         10.78
to assets
Risk-based
capital (5):
Tier 1              11.75           11.50         11.69         11.78         11.33
capital
Total capital       14.63           14.51         14.85         15.13         14.76
Tier 1              9.47            9.40          9.25          9.35          9.03
leverage (5)
Tier 1 common       10.12           9.92          10.08         9.98          9.46
equity (5)(6)
Common shares       5,266.3         5,289.6       5,275.7       5,301.5       5,262.6
outstanding
Book value
per common        $ 27.64           27.10         26.06         25.45         24.64
share
Common stock
price:
High                36.34           36.60         34.59         34.59         27.97
Low                 31.25           32.62         29.80         27.94         22.61
Period end          34.18           34.53         33.44         34.14         27.56
Team members
(active,            269,200         267,000       264,400       264,900       264,200
full-time
equivalent)
                                                             
                                                                              
(1)The efficiency ratio is noninterest expense divided by total revenue (net interest
income and noninterest income).
(2)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.
(3)Core deposits are noninterest-bearing deposits, interest-bearing checking, savings
certificates, certain market rate and other savings, and certain foreign deposits
(Eurodollar sweep balances).
(4)Retail core deposits are total core deposits excluding Wholesale Banking core
deposits and retail mortgage escrow deposits.
(5)The December 31, 2012, ratios are preliminary.
(6)See the "Five Quarter Tier 1 Common Equity under Basel I" table for additional
information.
                                                                              

                                                                           
Wells Fargo &
Company and
Subsidiaries
CONSOLIDATED
STATEMENT OF                                                         
INCOME
                                                                                             
                     Quarter ended Dec. 31,      %          Year ended Dec. 31,       %
(in millions,
except per         2012       2011      Change    2012      2011      Change
share amounts)
Interest
income
Trading assets       $ 339           400         (15  ) %   $ 1,358      1,440       (6   ) %
Securities
available for          1,897         2,092       (9   )       8,098       8,475       (4   )
sale
Mortgages held         413           456         (9   )       1,825       1,644       11
for sale
Loans held for         3             16          (81  )       41          58          (29  )
sale
Loans                  9,027         9,275       (3   )       36,482      37,247      (2   )
Other interest     178        139         28          587       548         7
income
Total interest     11,857     12,378      (4   )      48,391    49,412      (2   )
income
Interest
expense
Deposits               399           507         (21  )       1,727       2,275       (24  )
Short-term             24            14          71           79          80          (1   )
borrowings
Long-term debt         735           885         (17  )       3,110       3,978       (22  )
Other interest     56         80          (30  )      245       316         (22  )
expense
Total interest     1,214      1,486       (18  )      5,161     6,649       (22  )
expense
Net interest           10,643        10,892      (2   )       43,230      42,763      1
income
Provision for      1,831      2,040       (10  )      7,217     7,899       (9   )
credit losses
Net interest
income after       8,812      8,852       -           36,013    34,864      3
provision for
credit losses
Noninterest
income
Service
charges on             1,250         1,091       15           4,683       4,280       9
deposit
accounts
Trust and
investment             3,199         2,658       20           11,890      11,304      5
fees
Card fees              736           680         8            2,838       3,653       (22  )
Other fees             1,193         1,096       9            4,519       4,193       8
Mortgage               3,068         2,364       30           11,638      7,832       49
banking
Insurance              395           466         (15  )       1,850       1,960       (6   )
Net gains from
trading                275           430         (36  )       1,707       1,014       68
activities
Net gains
(losses) on
debt                   (63     )     48          NM           (128      ) 54          NM
securities
available for
sale
Net gains from
equity                 715           61          NM           1,485       1,482       -
investments
Operating              170           60          183          567         524         8
leases
Other              367        759         (52  )      1,807     1,889       (4   )
Total
noninterest        11,305     9,713       16          42,856    38,185      12
income
Noninterest
expense
Salaries               3,735         3,706       1            14,689      14,462      2
Commission and
incentive              2,365         2,251       5            9,504       8,857       7
compensation
Employee               891           1,012       (12  )       4,611       4,348       6
benefits
Equipment              542           607         (11  )       2,068       2,283       (9   )
Net occupancy          728           759         (4   )       2,857       3,011       (5   )
Core deposit
and other              418           467         (10  )       1,674       1,880       (11  )
intangibles
FDIC and other
deposit                307           314         (2   )       1,356       1,266       7
assessments
Other              3,910      3,392       15          13,639    13,286      3
Total
noninterest        12,896     12,508      3           50,398    49,393      2
expense
Income before
income tax             7,221         6,057       19           28,471      23,656      20
expense
Income tax         1,924      1,874       3           9,103     7,445       22
expense
Net income
before                 5,297         4,183       27           19,368      16,211      19
noncontrolling
interests
Less: Net
income from        207        76          172         471       342         38
noncontrolling
interests
Wells Fargo       $ 5,090      4,107       24         $ 18,897    15,869      19
net income
Less:
Preferred
stock              233        219         6           898       844         6
dividends and
other
Wells Fargo
net income        $ 4,857      3,888       25         $ 17,999    15,025      20
applicable to
common stock
Per share
information
Earnings per         $ 0.92          0.74        24         $ 3.40        2.85        19
common share
Diluted
earnings per           0.91          0.73        25           3.36        2.82        19
common share
Dividends
declared per           0.22          0.12        83           0.88        0.48        83
common share
Average common
shares                 5,272.4       5,271.9     -            5,287.6     5,278.1     -
outstanding
Diluted
average common         5,338.7       5,317.6     -            5,351.5     5,323.4     1
shares
outstanding
                                                                   
                                                                                             
NM - Not
meaningful
                                                                                             

                                                                                  
Wells Fargo &
Company and
Subsidiaries
CONSOLIDATED
STATEMENT OF                                                                     
COMPREHENSIVE
INCOME
                                                        
                       Quarter ended Dec. 31,      %          Year ended Dec. 31,         %
(in millions)        2012      2011      Change    2012      2011      Change
Wells Fargo net     $ 5,090     4,107       24     %   $ 18,897    15,869      19     %
income
Other
comprehensive
income, before
tax:
Foreign currency
translation
adjustments:
Net unrealized
losses arising           (5     )     (8     )     (38  )       (6     )     (37    )     (84  )
during the
period
Reclassification
of net gains             -            -            -            (10    )     -            -
included in net
income
Securities
available for
sale:
Net unrealized
gains (losses)           (454   )     290          NM           5,143        (588   )     NM
arising during
the period
Reclassification
of net losses            19           (82    )     NM           (271   )     (696   )     (61  )
(gains) included
in net income
Derivatives and
hedging
activities:
Net unrealized
gains (losses)           (11    )     (15    )     (27  )       52           190          (73  )
arising during
the period
Reclassification
of net gains on
cash flow hedges         (93    )     (117   )     (21  )       (388   )     (571   )     (32  )
included in net
income
Defined benefit
plans
adjustment:
Net actuarial
losses arising           (757   )     (1,077 )     (30  )       (775   )     (1,079 )     (28  )
during the
period
Amortization of
net actuarial
loss and prior       33        28          18           144       99          45
service cost
included in net
income
Other
comprehensive            (1,268 )     (981   )     29           3,889        (2,682 )     NM
income (loss),
before tax
Income tax
(expense)            481       358         34          (1,442 )   1,139       NM
benefit related
to OCI
Other
comprehensive            (787   )     (623   )     26           2,447        (1,543 )     NM
income (loss),
net of tax
Less: Other
comprehensive
income (loss)        (2     )   (2     )     -           4         (12    )     NM
from
noncontrolling
interests
Wells Fargo
other
comprehensive        (785   )   (621   )     26          2,443     (1,531 )     NM
income (loss),
net of tax
                                                                                                 
Wells Fargo
comprehensive            4,305        3,486        23           21,340       14,338       49
income
Comprehensive
income from          205       74          177         475       330         44
noncontrolling
interests
Total
comprehensive       $ 4,510     3,560     27      $ 21,815    14,668    49   
income
                                                                                                 
NM - Not
meaningful
                                                                                                 

                                                          
CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN                                     
TOTAL EQUITY
                                                                 
                                       Year ended December 31,
(in millions)                            2012               2011      
Balance, beginning of period           $    141,687              127,889
Cumulative effect of fair
value election for certain               2                  -         
residential mortgage
servicing rights
Balance, beginning of period                141,689              127,889
- adjusted
Wells Fargo net income                      18,897               15,869
Wells Fargo other
comprehensive income (loss),                2,443                (1,531    )
net of tax
Common stock issued                         2,488                1,296
Common stock repurchased (1)                (3,918     )         (2,416    )
Preferred stock released by                 888                  959
ESOP
Preferred stock issued                      1,377                2,501
Common stock warrants                       (1         )         (2        )
repurchased
Common stock dividends                      (4,658     )         (2,537    )
Preferred stock dividends                   (898       )         (844      )
and other
Noncontrolling interests and             604                503       
other, net
Balance, end of period               $    158,911            141,687   
                                                                 
(1)For the year ended December 31, 2012, includes $200 million related to a
private forward repurchase transaction entered into in fourth quarter 2012
that is expected to settle in first quarter 2013 for an estimated 6 million
shares of common stock.


                                                                     
Wells Fargo &
Company and
Subsidiaries
FIVE QUARTER
CONSOLIDATED                                                       
STATEMENT OF
INCOME
                                                                                
                    Quarter ended
                     Dec. 31,           Sept.       June 30,      Mar. 31,      Dec.
                                        30,                                     31,
(in millions,
except per        2012             2012      2012        2012        2011
share amounts)
Interest
income
Trading assets     $ 339                299         343           377           400
Securities
available for        1,897              1,966       2,147         2,088         2,092
sale
Mortgages held       413                476         477           459           456
for sale
Loans held for       3                  17          12            9             16
sale
Loans                9,027              9,016       9,242         9,197         9,275
Other interest    178             151       133        125        139
income
Total interest    11,857          11,925    12,354     12,255     12,378
income
Interest
expense
Deposits             399                428         443           457           507
Short-term           24                 19          20            16            14
borrowings
Long-term debt       735                756         789           830           885
Other interest    56              60        65         64         80
expense
Total interest    1,214           1,263     1,317      1,367      1,486
expense
Net interest         10,643             10,662      11,037        10,888        10,892
income
Provision for     1,831           1,591     1,800      1,995      2,040
credit losses
Net interest
income after      8,812           9,071     9,237      8,893      8,852
provision for
credit losses
Noninterest
income
Service
charges on           1,250              1,210       1,139         1,084         1,091
deposit
accounts
Trust and
investment           3,199              2,954       2,898         2,839         2,658
fees
Card fees            736                744         704           654           680
Other fees           1,193              1,097       1,134         1,095         1,096
Mortgage             3,068              2,807       2,893         2,870         2,364
banking
Insurance            395                414         522           519           466
Net gains from
trading              275                529         263           640           430
activities
Net gains
(losses) on
debt                 (63     )          3           (61     )     (7      )     48
securities
available for
sale
Net gains from
equity               715                164         242           364           61
investments
Operating            170                218         120           59            60
leases
Other             367             411       398        631        759
Total
noninterest       11,305          10,551    10,252     10,748     9,713
income
Noninterest
expense
Salaries             3,735              3,648       3,705         3,601         3,706
Commission and
incentive            2,365              2,368       2,354         2,417         2,251
compensation
Employee             891                1,063       1,049         1,608         1,012
benefits
Equipment            542                510         459           557           607
Net occupancy        728                727         698           704           759
Core deposit
and other            418                419         418           419           467
intangibles
FDIC and other
deposit              307                359         333           357           314
assessments
Other             3,910           3,018     3,381      3,330      3,392
Total
noninterest       12,896          12,112    12,397     12,993     12,508
expense
Income before
income tax           7,221              7,510       7,092         6,648         6,057
expense
Income tax        1,924           2,480     2,371      2,328      1,874
expense
Net income
before               5,297              5,030       4,721         4,320         4,183
noncontrolling
interests
Less: Net
income from       207             93        99         72         76
noncontrolling
interests
Wells Fargo      $ 5,090           4,937     4,622      4,248      4,107
net income
Less:
Preferred
stock             233             220       219        226        219
dividends and
other
Wells Fargo
net income       $ 4,857           4,717     4,403      4,022      3,888
applicable to
common stock
Per share
information
Earnings per       $ 0.92               0.89        0.83          0.76          0.74
common share
Diluted
earnings per         0.91               0.88        0.82          0.75          0.73
common share
Dividends
declared per         0.22               0.22        0.22          0.22          0.12
common share
Average common
shares               5,272.4            5,288.1     5,306.9       5,282.6       5,271.9
outstanding
Diluted                        *Story
average common    5,338.7  too
shares                         large*
outstanding

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