Barclays Capital

Americas Select Conference

John Stumpf
Ch i
Chairman andd Chi
Chieff Executive
E i Officer
Offi

May 23, 2011

© 2011 Wells Fargo Bank, N.A. All rights reserved.

Forward-looking statements and additional information
This presentation contains forward-looking statements about our future financial performance. These forward-looking
statements include statements using words such as “believe,” “expect,” “anticipate,” “estimate,” “should,” “could,”“may,”
“can,” “will,” “outlook,” “appears” or similar expressions. Forward-looking statements in this presentation include,
among others, statements about: expected or estimated future losses in our loan portfolios, including our belief that
quarterly provision expense and quarterly total credit losses have peaked and the allowance for loan losses is expected
to decline; mortgage repurchase exposure; exposure related to foreclosure practices; estimated future expenses,
expenses
including expected Wachovia integration costs and loan resolution/loss mitigation costs; and our estimates regarding our
Tier 1 common ratio under proposed Basel capital rules. Investors are urged to 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. For more
information about factors that could cause actual results to differ materially from expectations, refer to Wells Fargo’s
reports filed with the Securities and Exchange Commission,
Commission including our Quarterly Report on Form 10-Q 10 Q for the period
ended March 31, 2011, and our Annual Report on Form 10-K for the year ended December 31, 2010 including the
discussion under “Risk Factors” in that report.

Loans that were acquired from Wachovia that were considered credit impaired were written down at acquisition date in
purchase accounting to an amount estimated to be collectible and the related allowance for loan losses was not carried
over to Wells Fargo’s allowance. In addition, such purchased credit-impaired loans are not classified as nonaccrual or
nonperforming, and are not included in loans that were contractually 90+ days past due and still accruing. Any losses on
such loans are charged against the nonaccretable difference established in purchase accounting and are not reported as
charge-offs (until such difference is fully utilized). As a result of accounting for purchased loans with evidence of credit
deterioration, certain ratios of the combined company are not comparable to a portfolio that does not include purchased
p
credit-impaired loans. In certain cases,, the purchased
p credit-impaired
p loans may y affect portfolio
p credit ratios and trends.
Management believes that the presentation of information adjusted to exclude the purchased credit-impaired loans
provides useful disclosure regarding the credit quality of the non-impaired loan portfolio. Accordingly, certain of the loan
balances and credit ratios in this presentation have been adjusted to exclude the purchased credit-impaired loans.
References to impaired loans mean the purchased credit-impaired loans. Please see pages 30-32 of the first quarter
2010 press release for additional information regarding the purchased credit-impaired loans.

1
Overview
 Leading franchise

 Diversified business model

 Strong, consistent and high-quality earnings

 Growth opportunities
pp

 Expense discipline

 Significant
Si ifi t iimprovementt iin credit
dit quality
lit

 Strong capital position

2
Wells Fargo vision

“ We want to satisfy all our customers’

financial needs, help them succeed
financially, be the premier provider
of financial services in every one of
our markets, and be known as one
of America’s
America s great companies
companies.
”
3
Wells Fargo serves consumers and businesses in more
communities than any other U.S. Bank

▪ 70+MM customers
▪ 9,163 stores

Wells Fargo Bank stores

Wachovia Bank stores
Wells Fargo Advisors offices
Wells Fargo Home Mortgage stores

As of 1Q11.
4
 Distribution breadth and depth

Store Distribution Sales Force

Retail banking stores 6,300 Platform bankers 31,100

Wells Fargo Advisors offices 1,368 Financial advisors (1) 15,200

Wholesale stores 765 Home Mortgage consultants 11,000

Mortgage
g g stores 730 Other Distribution Channels
ATMs 12,112
Online banking customers 19.4mm

As of March 31, 2011.

(1) Series 7 brokers.
5
Fulfilling our responsibility to communities
 Credit extended (1) since Wachovia merger: $1.5 trillion
 Residential real estate originations since Wachovia merger: $890 billion
 Mortgage loan modifications since Wachovia merger: 665,000
 Wells Fargo team members (FTEs): 270,200

FORTUNE: World’s 41st Most Admired Company

BARRON’S: One of World’s 50 Most Respected Companies

NEWSWEEK: Among America's Top 50 Greenest Big Companies

DIVERSITY INC: Among

g the Top
p 50 Companies
p For Diversity
y

As of March, 31 2011.
Wachovia merger completed on December 31, 2008.
(1) Domestic lending commitments and origination activity.
6
Breadth of product/business lines
Deposits #2 in U.S. (1)

#1 Mortgage originator (2)

Residential mortgage
#2 Mortgage servicing portfolio (2)

#1 Small business banking (SBA lender) (3)

#1 Commercial real estate originator (4)

#1 Used car lender (5)
Lending
#2 Arranger of asset-based finance (6)
#2 Education finance lender (private)(7)
#3 Commercial loan syndications (8)
#1 Real estate loan syndications (lead arranger) (6)
Investment banking
#7 U.S. equity capital markets bookrunner (9)

Insurance #1 Bank-owned
Bank owned insurance brokerage (10)

#2 Bank-owned mutual fund family (11)

#2 Annuity distributor (based on sales) (12)
Wealth Management/Brokerage
#3 Retail brokerage (based on FAs and client assets) (13)
#4 Wealth management provider (based on AUM) (14)
#2 Debit card issuer (15)
Card Services
#1 U.S. bank managed remittance network overseas (16)

(1) FDIC data, June 2010. (2) Inside Mortgage Finance, 4/29/11 (3) CRA data, 2009. (4) Based on volume and dollars in the U.S. Mortgage Bankers Association,2010
(5) AutoCount, 2010. (6) Thomson Reuters, 1Q11. (7) Individual company reports, 2010. (8) Bookrunner by number of transactions, Thomson Reuters, 1Q11. (9)
SDC, 1Q11. (10) Business Insurance Magazine, July 2010. (11) Strategic Insight, 12/31/10. (12) SunLife Distributer Roundtable, May 2010. (13) Internal and peer
reports, 12/31/10. (14) Barron’s, September 2010. (15) Nilson Report, April 2011. (16) Inter-American Dialogue, 6/18/10.
7
The Wells Fargo brand is ranked as one
of the most valuable in the world
Brand strategy objectives:
BrandZ Top 100 Most Valuable
 Guide expression and customer Global Brands (1)
experience
 Gain new interest in Wells Fargo
 Provide momentum for cross-sell #16
 Create marketing efficiencies
Wells Fargo
 Reinforce team member pride
 Solidify our leadership Ranked most valuable U.S.
financial services brand

(1) BrandZ Top 100 Most Valuable Global Brands. Millward Brown Optimor, May 2011.

8
Broad-based revenues and earnings
($ in millions, 12 months ending 3/31/11)

Revenues Net Income (1)

Wholesale
Banking
$22,462 Community
Banking Wholesale
Community Banking
Banking
$7,750
$6,316
$53,162
WBR
$11 970
$11,970

WBR
$1,062

1Q11 ROA
Community Banking 1.16%
Wholesale Banking 1.68%
Wealth Brokerage & Retirement (WBR)
Wealth, 0 94%
0.94%

(1) Trailing twelve months segment net income after-tax excludes other net losses of $1,554 million which includes Wachovia integration expenses and the
elimination of items that are included in both Community Banking and Wealth, Brokerage & Retirement relating primarily to wealth management customers
serviced, and products sold, in the stores.
9
Our business model has produced significantly higher
operating margins than peer average over the past 10 years
Net Interest Margin Return on Assets
(10 year average 2001-2010) (10 year average 2001-2010)
NIM ROA

4 86%
4.86%
1.37%

3.36%
3.05% 0.95%

2.43% 0.79%

0.64%

WFC C BAC JPM WFC BAC C JPM

Source: SNL. Data through 4Q10.

10
And remained strong in the first quarter
Net Interest Margin Return on Assets
(1Q11) (1Q11)
NIM ROA

4.05% 1.23%

1.07%
2.91%
2.89%
2 66%
2.66%

0.63%

0.36%

WFC C JPM BAC WFC JPM C BAC

Source: SNL.
11
Cross-sell, convenience and customer retention have produced
a significant and sustainable advantage in core deposits
Percent of Funding from Deposits Percent of Deposits in Checking/Savings
(1Q11)
Percent of funding from deposits Percent of deposits in(1Q11)
checking/savings
(3Q 2010) (3Q 2010)

67
90 89 87 87
45
45 44

WFC JPM BAC C C WFC JPM BAC

Average Cost of Deposits Deposits per Branch

Average cost of deposits
(1Q11) (As of 6/30/10, $ in millions)
(YTD 3Q 2010)
Bps
119

0.84 80 80
66

0.30 0.33 0.40

WFC BAC JPM C C BAC WFC JPM

12
Record 1Q11 earnings
Net Income  $3.8 billion record 1Q11 quarterly net
($ in millions)
income, up 10% linked quarter and
48% YoY
3 759
3,759  $0
$0.67
67 per share,
share up 10% linked
3,414 quarter and 49% YoY
3,339
3,062

2 547
2,547

1Q10 2Q10 3Q10 4Q10 1Q11

13
Period-end loans
Declines reflect continued reduction in non-strategic/liquidating portfolio
Period-end Loans
($ in billions)

781.4 766 3
766.3 753 7
753.7 757 3
757.3 751.2

155.0 146.8 133.2

139.7 126.8

626.4 619.5 614.0 624.1 624.4

1Q10 2Q10 3Q10 4Q10 1Q11

(1)
All other loans Non-strategic portfolio

Period-end balances.
(1) The non-strategic/liquidating portfolio includes the Pick-a-Pay, liquidating home equity, legacy WFF indirect auto, legacy WFF debt consolidation, Education
Finance government and Commercial, Commercial Real Estate and other PCI loan portfolios.
14
Deposits
Strong growth and reduced average cost
Average Core Deposits
($ in billions)
 Average core deposits in 1Q11 up
$37.7 billion, or 5%, from 1Q10

794.8 796.8
 Average checking and savings in
759.2 1Q11 up $58
$58.1
1 billion,
billion or 9%,
9% from
185.5 221.0 212.7
1Q10
 Consumer checking accounts up
573.8 584.1
573.7
7.4% from 1Q10
- 7.9% growth in California
1Q10 4Q10 1Q11 - 8.5% growth in North Carolina
Retail Core Deposits Other Core Deposits
- 12.0% growth in Florida
Average Checking and Savings
($ in billions)

715.7 722.5
664.4

1Q10 4Q10 1Q11

15
Retail bank cross-sell opportunities

Retail Bank Household Cross-sell (1)

14-16

7.30
6.21
5.79
5.22

East Combined Wells West Top Region Avg. U.S.

Fa go
Fargo Financial Services
Se ices
Consumer

(1) Number of products per household as of 1Q11.

16
Legacy Wells Fargo cross-sell capability was built over 20 years
and proven over time
We continue to grow households The more products our customers have,
the more value we can provide
Retail Bank household growth (1)(2)(3) Total package penetration (3)

(combined consumer and business)

84%
3.7%
3.5% 3.3%
3.1% 2.9% 3.0%
2.5%

26%

Leg WF Leg WF Leg WF Leg WF Leg WF Leg WF Com b'd Legacy WF 2003 West 1Q11
2004 2005 2006 2007 2008 2009 WF 2010

The longer we know our customers, the more we can

satisfy their needs and remain relevant over time
Retail Bank household cross-sell by tenure (1)(2)

2004 Legacy WF
6.8 7.2
1Q11 Comb'd WF
5.5 5.1 5.6
47
4.7 4.3
3.8 3.7
2.9

<1 2 to 3 5 to 6 10 to 20 20+
Tenure in years

(1) Retail Bank Households for combined company for 2009 and 2010 periods (unless otherwise noted); household growth reflects rolling 12 months.
(2) Period-ending results.
(3) Legacy WF includes legacy WF states (not Kansas), East includes WB stand alone states except for Kansas, and the West includes legacy WF states, including
overlapping states and Kansas.
17
Retail bank opportunities

Retail Bank household

Metric
product penetration
Retail households West East West East

Households / Store 3,650 3,450 Retail Checking 91% 90%

Household Cross-sell 6.21 5.22 Debit 85% 77%

Households / Platform FTE (1) 635 885 Retail Savings 75% 66%

Credit Card 33% 14%

Solutions/Productivity
Insurance 10% 5%
Platform FTE / Store (1)
5.7 3.9
Mortgage 14% 10%
Platform FTE (1) 20,300 10,800

 We have opportunity
pp y to cross-sell new retail p
products to our Eastern customer bases

As of 1Q11.
(1) Effective 1Q11, Platform FTE in the East excludes Regional Banking Private Bankers.
18
Wholesale Banking opportunities
Cross-Sell Potential
 Opportunity to increase revenue in the Eastern U.S. by implementing legacy Wells Fargo model
 Investment banking revenue from commercial customers has grown as we leverage our product set,
distribution channels and strong customer base

− 1Q11 investment banking revenue with corporate and commercial customers increased 68% from 1Q10

Investment Banking Capital Markets

 U.S. investment banking
g market share (1) of 4.7% in 1Q11
Q up
p from 4.2% in FY2010

 Investing in and growing our talent base

− Added more than 500 team members since the merger, with strategic hires in key sectors

International Capabilities

 Deepen cross-sell through our Global Financial Institutions (GFI) business

 Build out global banking to U.S. commercial and corporate customers

Treasury Management
 Leading treasury management franchise with technology competitive advantages
- Customers are already heavy technology users and this continues to increase

(1) Source: Dealogic U.S. investment banking fee market share.

19
Wealth, Brokerage and Retirement opportunities
Wells Fargo Household Balance (1)

Cross-Sell Potential – Wells Fargo bank customers

HH Balances
 Penetrate 5.2 million affluent Wells Fargo households that increase
hold $1.7 trillion in investment assets with other firms, 6X
Bank &
but no investments with WBR Brokerage
Relationship
 5% penetration
t ti could
ld generate
t over $600MM annuall
revenue

Optimizing Financial Advisor Performance – Bank Only

Relationship
Bank Only
Relationship
Best Practices
Advisory AUM
($ in billions)
 Success measured by penetration of investment planning
(Envision), growth in advisory assets, advice-based balance
$235
sheet growth including loans and deposits and increased client
loyalty $82
 Strong growth in advisory client assets (19% CAGR 2004-
2010)
2004 2010
 91% of FAs have advisory AUM
51 Estimated Number of U.S. Retirees
 86% of FAs have clients in Envision 50

49

Retirement Opportunity 48

Millions
47
 Wells Fargo is uniquely positioned to capitalize on this
46
opportunity:
45
- Dedicated unit devoted to meeting client’s retirement
44
needs
43
- Advice-based focus on planning
42

% of US 2011 2012 2013 2014 2015

(1) Household balances include deposits and investments. population 14.5% 14.8% 15.1% 15.4% 15.6%

20
Focused on expense discipline
Noninterest Expense  1Q11 Noninterest expense down 5%
($ in millions)
from 4Q10
 1Q11 expenses include:
13,340
- $472 million of operating losses,
12,733
12,117
12,746
12,253 substantially all related to litigation
accruals for foreclosure-related matters
- $440 million of merger integration costs,
down $94 million from 4Q10
- Seasonally higher incentive
compensation and employee benefit
expenses
 Continued to focus on corporate-wide
1Q10 2Q10 3Q10 4Q10 1Q11 expense reductions

21
Credit quality
Continued decline in provision expense
Provision Expense  $3.2 billion 1Q11 net charge-offs,
($ in billions)
down $629 million from 4Q10 and
41% from 4Q09 peak
6.11
5.91  Provision expense of $2
$2.2
2 billion,
billion
1.00 0.50 5.33 down $779 million from 4Q10
5.09

4.56 0.70 3.99

 Allowance for credit losses = $22.4
(0.50) 3.45 billion
1.30 (0.65) 2
2.99
99
(0.85)
2.21
(1.0)
5.41 5.33
5.11
4 39
4.39 4 49
4.49
4.10
3.84
3.26 3.21

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

Net Charge-offs Credit Reserve Build

Reserve Release

22
Credit quality
Credit metrics showed continued improvement
Nonperforming Assets Nonperforming Loan Flows
($ in billions)
34.6
31.5 32.9 32.4
6.3 30.6
5.1 ($ in billions) 1Q11 4Q10 3Q10 2Q10 1Q10
4.2 6.2
5.6 Commercial
Inflows 1.9 2.3 2.8 2.5 2.8
Outflows (2.9) (3.6) (2.4) (2.6) (2.2)
Ending balance 10.3 11.3 12.6 12.2 12.3
27.3 27.8 28.3 26.2 25.0 Consumer
Inflows 4.0 4.3 4.9 4.8 6.1
O tfl
Outflows (4.2)
(4 2) (5.1)
(5 1) (4.8)
(4 8) (4.2)
(4 2) (3.8)
(3 8)
Ending balance 14.7 14.9 15.7 15.6 15.0

1Q10 2Q10 3Q10 4Q10 1Q11 Total $ 25.0 26.2 28.3 27.8 27.3
Nonperforming loans REO/Foreclosed assets/Other

L
Loans 90+ DPD and
d Still A
Accruing
i (1) Early Stage Delinquencies – Retail Businesses
($ in billions) (30+ days past due - balances and rates)
4.9 $30
3.9
2.3 $25 7.54%
3.2 7.34% 7.14%
ns)
7.18%
17
1.7 26
2.6
1.0 2.4 ($ in billion 6.20%
0.6 $20
0.7
2.6 2.2 2.1 2.0 1.7
$15

$10
1Q10 2Q10 3Q10 4Q10 1Q11
1Q10 2Q10 3Q10 4Q10 1Q11
Consum er Com m ercial
(1) Excludes mortgage loans insured/guaranteed by the FHA or VA and student loans whose repayments are predominantly guaranteed by guarantee agencies on
behalf of the U.S. Department of Education under the Federal Family Education Loan Program. The carrying value of PCI loans contractually 90 days or more
past due was $10.8 billion in 1Q11, $11.6 billion in 4Q10, $13.0 billion in 3Q10, $15.1 billion in 2Q10 and $16.8 billion in 1Q10. Consumer includes mortgage
loans held for sale 90 days or more past due and still accruing.
23
Mortgage servicing
Residential Mortgage Servicing Portfolio 4Q10 Servicing Portfolio Delinquency
$1.8 Trillion Performance (1)
(as of March 31, 2011) (Data as of December 31, 2010)

16%
7% 14.30%
14%
6% Foreclosure Rate
12% 11.60% 4.16%
Delinquency Rate 11.25%

10%
8.96% 4.29% 3.63%
19% 8.02%
8%
2.74%
2.19%
6%
10.14%
68% 4% 7.31% 7 62%
7.62%
5.83% 6.22%
2%

0%
(2)
Wells Fargo Citi JPM Chase Bank of America Industry
Agency
R t i d and
Retained d acquired
i d portfolio
tf li
Non-agency securitizations of
WFC originated loans
 Wells Fargo total delinquency and
Non-agency acquired servicing
and private whole loan sales foreclosure ratio for 1Q11 was 7.22%,
down from a peak of 8.96% in 4Q09

(1) Inside Mortgage Finance.

(2) Industry is all large servicers ($6.7 trillion) including WFC, C, JPM and BAC.
24
Capital
Capital remained strong and continued to grow internally
Tier 1 Common Equity Ratio  Tier 1 common +63 bps in 1Q11
 Other capital ratios growing
8.93% - Tier 1 Capital = 11.5%
8.30%
8.01% - Tier 1 Leverage = 9.3%
7.61%
7.09%  Tier 1 common equity ratio under
Basel III is estimated to be 7.2%
at 3/31/11

1Q10 2Q10 3Q10 4Q10 1Q11

See Appendix page 29 and 30 for more information on Tier 1 common equity.

25
Capital
Capital actions taken
 Quarterly common stock cash dividend rate increased to $0.12 per share and
paid fully in 1Q11; 2Q11 dividend of $0.12 per share declared and will be paid
on June 1

 Common stock repurchase authority increased by an additional 200

million shares

 $3.2 billion of trust preferred securities called

− Weighted average coupon of 7.49%
− Redemption funded through internal sources
− Impact already reflected in 1Q11 capital ratios

26
We remain focused
 Growing our customer base and deepening existing relationships

 Managing expenses and improving efficiency

 Being disciplined with our liquidity and investment strategy

 Growing capital internally and returning capital to shareholders

…All while completing the biggest banking merger in U.S. history

27
Appendix

28
Tier 1 common equity reconciliation
Wells Fargo & Company and Subsidiaries
(1)
TIER 1 COMMON EQUITY

Quarter ended
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, Sept. 30,
($
$ in billions) 2011 2010 2010 2010 2010 2008
Total equity $ 134.9 127.9 125.2 121.4 118.1 47.3
Noncontrolling interests (1.5) (1.5) (1.5) (1.6) (2.0) (0.3)
Total Wells Fargo stockholders' equity 133.4 126.4 123.7 119.8 116.1 47.0
Adjustments:
(2)
Preferred equity (10.6)
(10 6) (8 1)
(8.1) (8 1)
(8.1) (8 1)
(8.1) (8 1)
(8.1) -
Goodwill and intangible assets (other than MSRs) (35.1) (35.5) (36.1) (36.7) (37.2) (14.2)
Applicable deferred taxes 4.2 4.3 4.7 5.0 5.2 -
MSRs over specified limitations (0.9) (0.9) (0.9) (1.0) (1.5) (1.3)
Cumulative other comprehensive income (4.9) (4.6) (5.4) (4.8) (4.0) 2.8
Other (0.1) (0.3) (0.3) (0.3) (0.3) (0.6)
q y
Tier 1 common equity ((A)) $ 86.0 81.3 77.6 73.9 70.2 33.7
(3)
Total risk-weighted assets (B) $ 962.9 980.0 968.4 970.8 990.1 525.7
Tier 1 common equity to total risk-weighted assets (A)/(B) 8.93 % 8.30 8.01 7.61 7.09 6.41

(1) T ier 1 common equity is a non-generally accepted accounting principle (GAAP) financial measure that is used by investors, analysts and bank regulatory
agencies to assess the capital position of financial services companies. T ier 1 common equity includes total Wells Fargo stockholders' equity, less preferred
equity, goodwill and intangible assets (excluding MSRs), net of related deferred taxes, adjusted for specified T ier 1 regulatory capital limitations covering
deferred taxes, MSRs, and cumulative other comprehensive income. Management reviews T ier 1 common equity along with other measures of capital as part of
its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in
such information on the part of market participants.
(2) In March 2011, we issued $2.5 billion of Series 1 Preferred Stock to an unconsolidated wholly-owned trust.
(3) Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are
assigned to one of several broad risk categories according to the obligor or,
or if relevant,
relevant the guarantor or the nature of any collateral.
collateral T he aggregate dollar
amount in each risk category is then multiplied by the risk weight associated with that category. T he resulting weighted values from each of the risk categories
are aggregated for determining total risk-weighted assets.

29
Tier 1 common equity under Basel I and Basel III
Wells Fargo & Company and Subsidiaries
(1)
TIER 1 COMMON EQUITY UNDER BASEL 1 AND BASEL III
Mar. 31,
($ in billions) 2011

Total Equity $ 134.9

Noncontrolling interests (1.5)

g stockholders' equity
Total Wells Fargo q y 133.4

Adjustments:
Preferred equity (10.6)
Goodwill and intangible assets (other than MSRs) (35.1)
Applicable deferred taxes 4.2
MSRs over specified limitations (0.9)
Cumulative other comprehensive income (4.9)
Oth
Other (0 1)
(0.1)
Tier 1 common equity under Basel I (A) $ 86.0

Adjustments from Basel I to Basel III:

(2)
Cumulative other comprehensive income 4.9
(2) (3)
Threshold deductions defined under Basel III (6.8)
Tier 1 common equity anticipated under Basel III (B) $ 84.1
(4)
Total risk-weighted
g assets under Basel I ((C)) $ 962.9
96 .9
(4)
Total risk-weighted assets anticipated under Basel III (D) $ 1,167.1
Tier 1 common equity to total risk-weighted assets under Basel I (A)/(C) 8.93 %
Tier 1 common equity to total risk-weighted assets anticipated under Basel III (B)/(D) 7.21 %

(1) Tier 1 common equity is a non-generally accepted accounting principal (GAAP) financial measure that is used by investors, analysts and bank regulatory
agencies to assess the capital position of financial services companies. Tier 1 common equity includes total Wells Fargo stockholder's equity, less preferred
equity, goodwill and intangible assets (excluding mortgage servicing rights (MSRs)), net of related deferred taxes, adjusted for Tier 1 regulatory capital
limitations specified under Basel I and currently anticipated under Basel II and III primarily related to deferred taxes, MSRs, and cumulative other comprehensive
income. Wells Fargo reviews Tier 1 common equity along with other measures of capital as part of its financial analyses and has included this non-GAAP
financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.
The anticipated Tier 1 common equity under Basel III is preliminary and will require approval by regulatory authorities.
(2) Volatility in interest rates can have a significant impact on the valuation of cumulative other comprehensive income and MSRs and therefore, impact
adjustments under Basel III in future reporting periods.
(3) Threshold deductions under Basel III include individual and aggregate limitations, as a percentage of Tier 1 common equity (as defined under Basel III), with
respect
p to MSRs, deferred tax assets and investments in unconsolidated financial companies.
p
(4) Under the regulatory guidelines for risk-based capital under Basel I, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet
items are assigned to one of several broad risk categories according to the obligor or, if relevant, the guarantor or the nature of any collateral. The aggregate
dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk
categories are aggregated for determining total risk-weighted assets. Under current Basel proposals, risk-weighted assets incorporate different classifications of
assets, with certain risk weights based on a borrower's credit rating or Wells Fargo's own risk models, along with adjustments to address a combination of
credit/counterparty, operational and market risks, and other and Basel III elements. The amount of risk-weighted assets anticipated under Basel III is preliminary
and subject to change depending on final promulgation of Basel III capital rulemaking and interpretations thereof by regulatory authorities.
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