Wholesale Banking Presentation
Wholesale Banking Presentation
Wholesale Banking Presentation
Business highlights:
Over 35,000 team members
More than 400 domestic and international locations
1Q14 average assets: $517.4 billion
1Q14 average core deposits: $259.0 billion
1Q14 average loans: $301.9 billion
Revenue: 1Q14 $5.6 billion; FY 2013 $24.1 billion
Net income: 1Q14 $1.7 billion; FY 2013 $8.1 billion
Wells Fargo 2014 Investor Day Wholesale Banking 3
A diverse set of businesses
(1) TNS Commercial Banking Momentum Monitor, 2013; Middle market is defined as companies with revenues between $25MM and $500MM. (2) MBA
Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, year ending 12/31/13. (3) MBA Commercial/ Multifamily Mortgage Servicer
Rankings, year-end 2013. (4) Thomson Reuters LPC, 2013. (5) Dealogic, U.S. only fee-based ranking, 2013. (6) FImetrix Global Report on Bank-to-Bank
Transaction Services, 2013. (7) Commercial Finance Association (CFA) 2014 Annual Factoring Survey.(8) NACHA - The Electronic Payments Association, 2014.
(9) Thomson Reuters LPC, 2013. (10) Ernst & Young: 2013 Cash Management Survey of fee-equivalent revenues. (11) Securities Data Corp., December 2013.
(12) Commercial Mortgage Alert, 2013. (13) Dealogic, Jan. 2014; U.S. only; Excludes Public and Asset Backed Finance.
Provide a broad product offering that can serve customers over time
5% Trading gains
5% Other
2013 Earnings
51%
Net interest
income
Wholesale: 37%
7.0
5.9
2.2 2.3
1.7 1.7
1.4 1.4
1.0 1.1 1.1
0.8 0.8
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
1.08%
0.94%
0.56% 0.56%
0.47%
0.36% 0.34%
0.29% 0.33%
0.19%
0.10% 0.12% 0.08%
0.00% 0.02%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q14
-0.07% -0.08%
($ in millions)
Total Revenue
CAGR = 5.6%
$24,092 $24,064
Net Income
$8,133
$7,774
$6,987
FY11 FY12 FY13
Noninterest Expense
CAGR = 5.2%
$12,378
FY11 FY12 FY13 $12,082
$11,177
$285
$288 Corporate Banking and Asset Backed
$283 Finance grew across many sectors
Wells Fargo Capital Finance grew
across asset-based lending divisions
International grew from GFI demand
in Asia
1Q13 2Q13 3Q13 4Q13 1Q14
Total Deposits
4Q13 deposits increased on broad-
($ in billions, average balances)
based organic growth in Corporate
$316
$313 Banking, Commercial Banking, and
Govt/Inst. Banking, including
increases from a few large customers
$290 preparing for acquisitions
$278 1Q14 deposits increased 17% YoY
$269
Tim Sloan
7.2
6.9
6.7
Single product types are counted only once per relationship. Cross-sell reported on a one-quarter lag.
International
Investments
Risk Management
Corporate Trust
Insurance
Shareowner Services
Data as of February 2014 for all Wholesale Banking relationships >$10K Pre-tax pre-provision profit (PTPP). PTPP is total revenue less noninterest expense.
$2,849
$1,388
$611
$227 $301
Data as of February 2014. Average number of products and average annual revenue shown is per relationship.
Independently assess and challenge line-of-business market risk exposures, when appropriate.
Operational
Customers expect we will be a reliable provider of services.
Wholesale decision makers have primary responsibility for risk. Corporate Risk functions provide oversight,
enterprise view, and appropriate challenge.
Wholesale Banking has no tolerance for willful or negligent violation of laws, regulations, or company
policies.
(1) TNS Commercial Banking Momentum Monitor (2013); Middle market is defined as companies with revenues
between $25MM and $500MM.
(2) Data as of February 2014. Industry classifications based on NAICS level 2 codes.
A local approach to serve the middle market via our Commercial Banking offices
(1) In addition to these primary U.S. offices, there are 17 satellite offices in the U.S. and 2 offices in Canada.
74,239
CAGR = 6.2%
3,903 4,064
64,110 3,605
CAGR = 10.7%
Net income: 8.4%
53,338
50,906
43,528
Foreign Exchange
10%
2%
2%
Asset Management Net Interest
5% Income 50% 51%
Investment 48%
Banking &
Capital 7% 49%
Markets
52% 50% 49%
5%
Commitment
and LC Fees
2011 2012 2013
20%
Noninterest Income
Net Interest Income
Treasury
Management
(% of relationships)
Sole-bank lender 80%
(non-syndicated)
International
Investments
Risk Management
Insurance
Corporate Trust
Shareowner Services
24.5%
22.5%
18.7%
11.9%
12.2%
Non Lead Bank
10.9% 11.2% Lead Bank
8.4%
7.6%
12.6% 4.4%
10.3%
7.8%
3.6% 4.0%
Beverage
The expertise
32 offices across the U.S. and Canada have specialized Food & Agribusiness
Food & experts
Agribusiness Leading provider of U.S. farm loans, by volume (1)
Environmental
& Waste The opportunity
Management Providing less than 10% of the total U.S. farm loan volume (1)
Added experts in five offices in last 12 months focused on growing market
share for Food & Agribusiness east of the Mississippi
Heavy
Equipment
Technology
Technology&
Venture
BankingBanking
Group
Investor Real
Estate
(1) American Bankers Association; FDIC, data as of 4Q13 for total Wells Fargo.
Beverage
Food &
Agribusiness Expansion strategy driven by the geographic growth of Commercial
Banking and Technology sectors
Environmental
& Waste
Management Internet movement; Expanded to Launched
Late launched Technology Southern CA National Clean
2006 2010 Tech team
90s Banking Group focused
on four sectors (1)
Increased Life
Expanded to L.A.
Sciences focus
Heavy
Equipment
Investor Real
Estate
(1) Initial four sectors included semiconductors, software, hardware/networking, and internet.
CAGR = 12%
$847 Million
Initial Public Offering
September 2013
Bookrunning Manager
Business description
2,000+ relationships
Bank nearly 3 out of 4 Fortune 500 companies
18-year average bank relationship tenure
10 products per relationship
(1) Data as of February 2014 for Corporate Banking relationships >$10K PTPP.
Calgary
Aberdeen,
Scotland
34,401
CAGR = 24.7%
30,291 CAGR = 13.2%
22,130
3,337 3,589
2,801
42,861
Loans, revenue, PTPP, and net income include the credit for products and services to customers in multiple businesses that are
eliminated in Wholesale segment reporting.
(1) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense.
7% Asset Management
Net Interest Foreign Exchange
3%
Income 3% Risk Management
3%
34% 66% 66%
68%
34% 34%
24% Investment 32%
Banking &
Capital
Markets 2010 2011 2012 2013
Equity 2%
Investment
Gains Non Interest Income
9%
Net Interest Income
Other 15%
Treasury
X%
Management
Energy
#1 U.S. oil & gas loan syndications bookrunner (1)
#1 energy investment banking (2)
Restaurants
#1 restaurant loan syndications bookrunner (4)
Financial institutions
#2 U.S. and Bermuda insurance investment grade bond issuance (5)
#3 U.S. financial services loan syndications bookrunner (6)
(1) Thomson Reuters LPC, by number of deals and by volume, 2013. (2) Dealogic, U.S. only fee-based ranking, 2013. (3) Thomson Reuters LPC, by
number of deals and by volume, 2013. (4) SIC 5812, by number of deals, 2013. (5) Dealogic, excludes FA notes, 2013. (6) Thomson Reuters LPC, by
volume, 2013.
85% of Corporate Banking relationships have a credit product and 73% have a
Treasury Management product with Wells Fargo
Investments
International
Corporate Trust
Risk Management
Shareowner Services
Insurance
Business description
One of the largest capital providers in the Energy
sector
Active across the upstream, midstream, and
services sectors for companies of all sizes
Experienced management team
Energy
platform Dedicated, industry-focused Energy group for 40+
today years
Management team has a 13-year average tenure
at Wells Fargo
Team members
Over 400 team members across the Wholesale
platform located throughout the U.S., Canada,
and U.K. dedicated to serving Energy customers
Other
4%
Midstream
20%
Upstream
54%
Services &
equipment
22%
(1) Data as of February 2014 for Corporate Banking Energy relationships >$10K PTPP.
(2) Commitments as of 12/31/2013.
(1) WFS and Dealogic, by deals, 2013. (2) Thomson Reuters LPC, 2013. (3) Dealogic, U.S. only fee-based ranking, 2013. (4) Dealogic, by number of deals,
2010-2013. (5) Dealogic, by fees and number of deals, 2013.
A broad and deep platform that allows us to help our customers grow
Start-up
- Basic treasury Growth
management
- Revolving credit
- Expand treasury Corporate/public
management
- Second lien - Foreign exchange
- Leasing
- Derivatives hedging - International treasury
- Syndicated financing
- Direct equity management
- Term loan
investment - Initial public offering/
- High-yield issuance equity issuance
- Advisory - Shareowner services
- Corporate trust - Wealth management
CAGR = 34.5%
12,565 CAGR = 23.0%
11,204
Loans, revenue, PTPP, and net income include the credit for products and services to customers in multiple businesses that are
eliminated in Wholesale segment reporting.
(1) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense.
8%
Risk Management
6%
6% 5%
Equity
Treasury
Investment
Management
Gains
(1) MBA Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, year ending 12/31/13. (2) MBA Commercial/ Multifamily Mortgage
Servicer Rankings, year-end 2013. (3) Company filings. (4) Real Estate Alert, 2013. (5) Dealogic, 2013. (6) Thomson Reuters LPC, 2013.
47,412
CAGR = 17.9%
2,322 2,517
1,811
8,331
Net income: 37.3%
6,917
Loans, revenue, PTPP, and net income include the credit for products and services to customers in multiple businesses that are
eliminated in Wholesale segment reporting.
(1) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense.
2% Commitment
and LC Fees 80%
84%
81%
80%
Net Interest
Income
2011 2012 2013
Noninterest Income
Net Interest Income
Outstandings % of Top 20
Rank Bank ($ in millions) Banks
1 Wells Fargo $129,254 22%
5 US Bancorp $39,353 7%
6 PNC $32,653 6%
(1) Source: Federal Reserve Form FRY-9C Filings. Includes HFS, foreign, and other loans secured by RE as of 12/31/13.
Top 20 Banks represents 35% of total industry bank lending.
Strong balance sheet, industry commitment, and track record of performance through
all cycles
Wells Fargo commercial real estate platform held relatively consistent origination levels
during 2008 2013 (1), benefitting our reputation and our experience
Wells Fargo
Number of Wells transaction Percent of total
Fargo volume (1) transactions in
Year transactions (1) ($ in millions) market (1)
(1) MBA Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, years ending 12/31/08 - 12/31/13.
Sacramento, CA
San Diego, CA
Seattle, WA
Washington, DC
(1) MBA Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, year ending 12/31/13. Includes Eastdil Secured.
With a comprehensive, end-to-end real estate platform, Wells Fargo offers customers a broad platform of
individual asset acquisition and balance sheet solutions to meet their investment, capital, and liquidity needs.
Customer
Asset Corporate
level investment
banking banking
Commercial real
Securities
estate lending
CMBS, mezzanine & Private & public
warehouse lending equity
Loan syndications
Public debt
Debt placement
Risk Management
Investments
Corporate Trust
Insurance
International
Shareowner Services
Top 50 CRE credit relationships have an average of 14 bank products and an average
tenure of 17 years with Wells Fargo
Data as of February 2014 for Commercial Real Estate relationships >$10K PTPP.
Range of solutions
All securities products and services offered through Wells Fargo Securities, LLC.
Strong industry focus and willingness to use our balance sheet to provide
certainty of execution at all times for our relationships
Uniquely broad and diverse platform makes us a one-stop shop for all
financial solutions for this sector
Trading
87 applications Market-Linked
600
Investments
Cash
Forecasting
Insurance
CEO Mobile
Channel
Health Savings
Accounts 400
Remote Deposit
Commercial Card
Reporting
Trust &
Investments
Active CEO users (1)
200
Self Administration (thousands)
Wires & ACH
Payments
Credit & TM
Reporting
FX
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(1) Active users are those with a log-in in the 6 months ending December 31, 2013.
Relationship
Customer Product
Manager overall
service Average
effectiveness
Large Corporate A+ A+ A+
Middle Market A+ A A
Local Easy to do
distribution business with
Continuous Voice
Attract & Anytime Multi-channel
investment cultivate of the anywhere access
in our people talent
Customer
Highly
Differentiated
integrated &
products
customizable
Innovative
Build vs. buy product
philosophy solutions
Wells Fargo 2014 Investor Day Wholesale Banking 79
Investing for the future
Our competitive edge is increasingly based on how, not just what, we deliver
(1) Ernst & Young: 2013 Cash Management Survey of fee-equivalent revenues.
We expanded our sales force 16% in the past 3 years, and have invested in
internal tools and training to empower effectiveness in the field
Sales teams are organized and dedicated to specific market opportunities
Relationship
Industry verticals Specialized products
segments
Paper to electronic
Aligning our
Customers look to us as a trusted adviser to facilitate change in
customer their business processes
solutions
High-cost treasury operations are pushing customers to shift to
with market electronic and automated tools
trends Integrating their systems with our platforms enables customers
to realize efficiencies of straight-through processing
Rising rates
Proven leadership