Wells Fargo & Company 2019 Annual Report
© 2020 Wells Fargo & Company. All rights reserved.
Deposit products offered through Wells Fargo Bank, N.A. Member FDIC.
CCM3520 (Rev 00, 1/each)
WELLS FARGO & COMPANY
420 MONTGOMERY STREET | SAN FRANCISCO, CA | 94104
XXXXXXXXXX | WELLSFARGO.COM
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Wells Fargo & Company
2019 Annual Report
Wells Fargo’s Extensive Network
digital (online and mobile) active customers
mobile active users
*Number of domestic and global locations. Includes Wells Fargo Advisors Private Client Group and Financial Network locations.
*Data as of November 2019.*
Data as of December 31, 2019.
N U M B E R O F D O M E S T I C L O C AT I O N S B Y S TAT E
CT: 90
MD: 121
NJ: 336
DC: 40
MA: 33
RI: 6
DE: 22
NH: 6
VT: 7
1
4
7
2
5
8
3
6
9
AK
53
1
2
4
5
6
7
8
9
3
WA
189
OR
128
CA
1,232
NV
119
ID
85
MT
43
ND
27
SD
55
NE
54
KS
31
OK
15
TX
740
MN
182
IA
85
MO
36
AR
37
LA
20
MS
25
AL
140
GA
302
SC
149
NC
352
FL
701
IL
103
MI
42
IN
34
OH
63
VA
313
WV
10
PA
324
NY
191
ME
4
KY
9
TN
44
WI
82
WY
30
CO
198
NM
91
UT
115
AZ
259
HI
6
Argentina
Australia
Bahamas
Bangladesh
Brazil
Canada
Cayman Islands
Chile
China
Colombia
Dominican Republic
France
Germany
Hong Kong
India
Ireland
Israel
Italy
Japan
Luxembourg
Netherlands
New Zealand
Philippines
Singapore
South Korea
Sweden
Taiwan
Thailand
United Arab Emirates
United Kingdom
Vietnam
A R O U N D T H E W O R L D
LOCATIONS*
7.4K
CUSTOMERS
70M+
MOBILE BANKING**
24.4M
ATMs
13K
WELLSFARGO.COM**
30.3M
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Contents
2 L e t t e r f r o m C h a i r o f t h e B o a r d
8 L e t t e r f r o m C E O
2 3 O u r P e r f o r m a n c e
2 4 B o a r d o f D i r e c t o r s
2 6 C o r p o r a t e R e s p o n s i b i l i t y : XXXXXXXXXX
E n v i r o n m e n t a l , S o c i a l , a n d G o v e r n a n c e H i g h l i g h t s
XXXXXXXXXXF i n a n c i a l R e p o r t
2 5 9 S t o c k P e r f o r m a n c e
E L I Z A B E T H A . D U K E
C h a i r , B o a r d o f D i r e c t o r s
W e l l s F a r g o & C o m p a n y
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3
F e b r u a r y 2 0 , XXXXXXXXXX
2019
ought a great deal of
change to Wells Fargo, including
the selection of our new CEO,
Charlie Scharf. Through it all,
the company’s foundational
commitment to helping
customers succeed fnancially
has remained a constant.
Working together, the company and our board continue to make
progress in our ongoing transformation. Although much work remains,
I am optimistic about our future as we move forward.
The board decided to conduct an external search for a new CEO after
Tim Sloan announced his retirement. I am pleased that our search led
to the appointment of Charlie as our CEO and president. Charlie is an
experienced CEO who has excelled at strategic leadership and execution.
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With more than 24 years in leadership roles in the banking
and payments industries, Charlie has demonstrated a strong
track record in initiating and leading change, driving results,
strengthening operational risk and compliance, and innovating
amid a rapidly evolving digital landscape.
Charlie embodies the traits our board’s search committee was
looking for in Wells Fargo’s next leader — namely, financial and
usiness acumen, integrity, passion for diversity and inclusion, and
commitment to strong talent management. His proven ability to
uild strong relationships with stakeholders, including customers,
employees, regulators, and investors, will be especially important
to rebuilding trust and resolving key regulatory issues. He has led
organizations in all our major business lines, and his experience with
usinesses that operate at the scale and complexity of Wells Fargo
has prepared him well for this role.
What we have observed in the first few months of Charlie’s
tenure only confirms our initial high expectations. He
ings to
Wells Fargo a willingness and ability to make important changes,
an urgency to address our regulatory issues, and a recognition of
the importance of actively engaging with our stakeholders. He is
actively developing his strategic priorities for the company and
evaluating them in light of our risk appetite and the capacity of
our risk management framework. He is making key organizational
changes and has already demonstrated a commitment to direct
and transparent communications.
I wish to thank the members of the board’s search committee —
Chair Jim Quigley, Wayne Hewett, Maria Mo
is, and Ron Sargent —
for conducting a thorough and successful search that was
comprehensive in its diligence and reach. I also would like to thank
Allen Parker for his exemplary service as interim CEO and president.
His leadership during a time of transition enabled Wells Fargo and
our team members to continue moving forward in a focused and
transparent way.
4
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N E W B O A R D M E M B E R S
As the company makes important changes, so does the Board
of Directors. We continued our efforts to further enhance board
efectiveness by adding more directors with expertise in fnancial
services, regulatory matters, and financial reporting.
In June 2019, we welcomed Chuck Noski to the board. Chuck
ings
oad experience as a corporate director through service
on numerous boards, including Booking Holdings Inc., and until
ecently Microsoft Corporation. He also has financial industry
experience through his prior roles as a director of Morgan Stanley
and as CFO of Bank of America. In addition to his extensive
experience in public accounting and as CFO of Fortune 500
companies, he is the immediate past chairman of the Board
of Trustees of the Financial Accounting Foundation, overseer
of the Financial Accounting Standards Board. Chuck serves on
our board’s Audit Committee.
Dick Payne joined the board in October. Dick is a seasoned
anking professional with more than 40 years of experience
in corporate and commercial banking as well as capital markets
with large financial institutions, serving middle-market and large
corporate customers in many of the same geographic markets and
usinesses served by Wells Fargo. He has a deep understanding
of banking and the regulatory environment and
ings experience
and valuable perspective to the board.
Both new directors are already contributing to our progress as
we work to transform Wells Fargo, meet the expectations of our
egulators, and rebuild trust with our stakeholders.
I also wish to thank John Baker, a member of the Board of Directors,
for his years of service and many contributions to the board.
John will retire as a director at the company’s 2020 annual meeting
of shareholders.
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L O N G -T E R M S H A R E H O L D E R VA L U E
While much of the work underway is necessary to meet our
egulatory requirements, it will also make us a stronger, nimbler, and
more efcient company. The board’s oversight is ultimately focused
on ensuring the alignment of strategy with risk management, and
our ability to satisfy the fnancial needs of customers while creating
value for shareholders. Several examples of actions taken over the
past few years include the following:
We changed the organizational structure of Wells Fargo from
a decentralized to a centralized model.
We reviewed, and continue to review, all business processes for
effectiveness and standardization.
We continued to make strategic choices about the businesses we
are in. Over the past few years, we have divested businesses that
did not meet our strategic objectives, such as the institutional
etirement business, commercial real estate
okerage, crop
insurance, property and casualty insurance, stock transfer agent,
and payroll services businesses.
In the Consumer Bank, management has continually reviewed and
evaluated the
anch network, closing some
anches and selling others
as a result of our customers’ steady migration to digital channels.
Throughout 2017 and 2018, the Auto business intentionally slowed
its originations in order to make needed changes to its business
structure, including centralizing back-off ice functions from over
50 locations into four hubs across the country, re-engineering
processes to improve eff iciency and the customer experience, and
etter managing risk. Following this restructuring, the Auto portfolio