Wells Fargo & Co at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Goldberg - Barclays - Analyst : Maybe we could put up the first ARS question. We've been asking all the -- for all the companies this question calling up at the end. So Mike, maybe we could start just big picture. Obviously, well served. This is a broad way of consumers high net worth individuals, commercial, institutional investors. Maybe just tell me kind of what you're hearing and seeing across segments as you kind of grapple with a slowing economy, elevated inflation, economic uncertainty, declining rates potentially and the like.

Question: Jason Goldberg - Barclays - Analyst : Helpful. Well, I'd love running through the financials with you, but maybe we could start in kind of some of the kind of bigger picture strategic areas and questions we get on wealths. Maybe just start with kind of retail banking since the asset cap branch counts down by more than 25%, Bank of America and JPMorgan are obviously now expanding more aggressively into new markets, some where you're kind of the leader in. Maybe just talk to your retail banking strategy currently in the current landscape? And how does this change when the asset cap gets moved?

Question: Jason Goldberg - Barclays - Analyst : And then I guess in the last three years or so, well, is completely revamped its credit card business, I think, nine new cards. Just where are you kind of in that product build-out? And how should we think about its contribution as profitability, the portfolio matures?

Question: Jason Goldberg - Barclays - Analyst : And then I guess on the corporate and investment bank had a lot of new talent over the last several years, new co-CEO. Trading has clearly kind of become a bigger portion of the revenue stream. Just where are you in that journey? And kind of what are your aspirations there?

Question: Jason Goldberg - Barclays - Analyst : And then the wealth management business probably most adversely impacted by the asset cap, although it fears like adviser retention has improved to late and your ability to serve the independent advisory channel. Just how you're thinking about that business.

Question: Jason Goldberg - Barclays - Analyst : Helpful. I guess, now turning to the financials. So I guess the NII guide at the start of the year was down 7% to 9% kind of pointed to the worst of that range in July going to increase deposits and we could then expect loan growth. We're going to kind of maybe unpack that. But maybe just on an interest income or square after that, any update to the 2024 guidance of down 8% to 9%?

Question: Jason Goldberg - Barclays - Analyst : Got it. And then maybe a couple of questions on deposits. You talked about the sweep deposit increase. It looks like you went to 5%, you then went to 5%. Morgan Stanley, UBS, closer to 2%. I guess, why go over the 5%? Has it impacted balances at all? I know it's only one segment of these deposits, but is there concerns that you may have to scribe across additional deposits?

Question: Jason Goldberg - Barclays - Analyst : Got it. And then maybe shifting gears to loan growth. Card has kind of been strong but kind of seeing weakness elsewhere. I think consistent with others. Any signs of improvement or some signs of optimism. And do you think the Fed cut next week could maybe potentially be a catalyst? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 11:30AM, WFC.N - Wells Fargo & Co at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : If we could put up the next ARS question. I guess, like putting it together, you gave us a little bit of a nugget in terms of $50 million full quarter impact in Q -- the full impact of the deposits in Q3. Obviously, interest rates are moving as well. We talked about loan growth. I guess to kind of put all that together, how should we think about the net interest income trajectory into next year?

Question: Jason Goldberg - Barclays - Analyst : Very, very even distribution around change.

Question: Jason Goldberg - Barclays - Analyst : I guess on the fee income side, it's certainly been a sort of strength on the last six quarters of year-over-year growth. I think from some of the investments you talked earlier, obviously, more conditions that helps. Maybe just walk through kind of some of the larger categories and what you're hearing and thinking?

Question: Jason Goldberg - Barclays - Analyst : I guess on the expense front, you kind of guided up to $54 billion. Some of that was FDIC special assessment will give you a pass, some of that revenue related. That's a good thing. Some of it with operating losses being, I guess, higher than expected. And I guess, first, you still feel good about the $54 billion. And then secondly, how do we think about operating losses looking out? I would have thought most of your issues would have been behind you right now.

Question: Jason Goldberg - Barclays - Analyst : And I guess, maybe sticking with expenses, head count is, I think, down 16 straight quarters as you kind of embark on continued efficiency initiatives yet, including green efficiency ratio probably higher than you'd want. Maybe what else could be done sort of to kind of get expenses or get efficiency ratio better? And just how you're kind of thinking about the 2025 budget?

Question: Jason Goldberg - Barclays - Analyst : And then touch on credit quality earlier, but charge-offs were up last quarter. Office and credit card appears are playing a role in you and others. I think you were talking about lower credit card charge-offs for Q3 at one point. Is that still true? And just maybe talk about just credit quality more broadly.

Question: Jason Goldberg - Barclays - Analyst : I guess just sticking with the credit thing you touched on the allowance, but you've kind of built allowances over the last couple of years. We see more releases in the first part of this year. Maybe just talk to kind of what's driving that and just how do we think about allowance going forward in the kind of rising unemployment, continued offers trust and the like.

Question: Jason Goldberg - Barclays - Analyst : Got it. And then maybe on capital, 14% dividend increase, $12 billion buyback in the first half of the year, definitely well received, 11% CET1, maybe a little bit closer now to your kind of I think, 9.8% revised target for new target -- or not new target, requirement. I guess, first of all, I guess, the SCB came in higher than we expected probably higher than you expected. Does that kind of change anything? I think I have the biggest increase on it any things. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2024 / 11:30AM, WFC.N - Wells Fargo & Co at Barclays Global Financial Services Conference

Question: Jason Goldberg - Barclays - Analyst : I guess you mentioned it, but 10:00 AM allegedly next Thursday, get a proposal side with the original. So I guess, it goes with the expectation that capital inflation will be half originally expected.

Question: Jason Goldberg - Barclays - Analyst : I guess just any thoughts in terms of how that plays out? And how would the industry perceive? Initially, this was expected to -- really no increase to capital. They got to like a 20% increase, now maybe a 10% increase to capital requirements. Just any thoughts around that.

Question: Jason Goldberg - Barclays - Analyst : Fair enough. We'll come back to you on that. Asset [cap]. I guess it's been five years since Charlie started as CEO, and since they want talked about operational compliance risk. Although it does like the tone around kind of that sounded a bit maybe more upbeat this year, although obviously, the asset cap remains in place. I know it's a regulatory decision, but just any update to provide. And we can put up the next ARS question while Mike answers that.

Question: Jason Goldberg - Barclays - Analyst : I think that's the seventh in a row we asked the audience this question and they've yet to get it right or I shouldn't say that. Number five, always seems to be an answer. But I want to ask you to a fine. But I guess this is probably the most optimistic we've seen it. I'll leave it at that. I guess if we can go to the next ARS question and maybe, Mike, maybe tying together a lot that we talked about today -- just maybe talk about -- if you think about like the July earnings, I guess July earnings call, no maybe a bit worse than expected, expenses a bit worse than expected, SCB higher than expected. Does that kind of impact at all kind of your timing or how you think about kind of the ultimate kind of ROTCE 15% and maybe talk about the biggest opportunities and strengths for that objective?

Question: Jason Goldberg - Barclays - Analyst : I guess that we can put up the next ARS question. I guess that was kind of my next follow through is like 15% the audience team to think 2026, 2027 type time frame, we'll see. But ultimately.

Question: Jason Goldberg - Barclays - Analyst : What was your --

Question: Jason Goldberg - Barclays - Analyst : Yeah. We can go forward. But just ultimately, what -- I mean do you think this company is capable of?