Excellent franchise driven by a community-banking business model Broadly diversified revenue base stabilizes earnings Very strong preprovision earnings help offset credit costs Elevated, but manageable credit costs Challenging future loan growth Regulatory uncertainty related to ultimate implementation of the financial-services legislation Standard&Poor's Ratings Services' strong ratings on Wells Fargo&Co. reflect its exceptional presence in lower-volatility consumer and community banking and strong earnings that have withstood the current credit cycle. The core of Wells Fargo's business is taking deposits and making loans. In addition, Wells benefits from a broadly diversified revenue base that stabilizes earnings. Trust, investment and other fees, mortgage banking, and insurance revenues drive noninterest income, which equaled 48% of total quarterly revenues in first-quarter
