Financial results:

• Revenue of $21.9 billion, down 2 percent from third quarter 2016

Net interest income of $12.5 billion, up $524 million, or 4 percent

Noninterest income of $9.5 billion, down $926 million, or 9 percent

• Noninterest expense of $14.4 billion, up $1.1 billion, or 8 percent, including $752 million higher operating losses

Third quarter 2017 included a $1 billion discrete litigation accrual (not tax-deductible), or $(0.20) per share, for previously disclosed mortgage-related regulatory investigations

• Total average deposits of $1.3 trillion, up $44.8 billion, or 4 percent
• Total average loans of $952.3 billion, down $5.1 billion, or 1 percent
• Return on assets (ROA) of 0.94 percent and return on equity (ROE) of 9.06 percent

Solid credit quality:

• Net charge-offs of $717 million, down $88 million from third quarter 2016

Net charge-offs were 0.30 percent of average loans (annualized), down from 0.33 percent

• Nonaccrual loans of $8.6 billion, down $2.4 billion, or 22 percent
• No reserve build or release1, consistent with third quarter 2016

• Strong capital position while returning more capital to shareholders:
• Common Equity Tier 1 ratio (fully phased-in) of 11.8 percent.

Returned $4.0 billion to shareholders in the third quarter through common stock dividends and net share repurchases

Net share repurchases of $2.0 billion, up 59 percent from third quarter 2016

Period-end common shares outstanding down 96.0 million shares from third quarter 2016

Quarterly common stock dividend of $0.39 per share, up from $0.38 per share in third quarter 2016

 

Wells Fargo & Company reported net income of $4.6 billion, or $0.84 per diluted common share, for third quarter 2017, compared with $5.6 billion, or $1.03 per share, for third quarter 2016, and $5.8 billion, or $1.07 per share, for second quarter 2017.

 

Chief Executive Officer Tim Sloan said, “Over the past year we have made fundamental changes to transform Wells Fargo as part of our effort to rebuild trust and build a better bank. While our financial performance in the third quarter included the impact of a litigation accrual for previously disclosed, pre-crisis mortgage-related regulatory investigations, I am proud of the commitment of our 268,000 team members who put our customers first. We saw total average deposit growth; loan growth in our residential mortgage, credit card and subscription finance portfolios; as well as higher assets under management in Wealth and Investment Management. We also continued to invest in customer-focused innovation and have begun the rollout of our online mortgage application and “Intuitive Investor,” our online platform for digital investing and professional advice. We’re also committed to helping our communities recover from the devastation of the recent hurricanes by providing payment relief and proactively waiving fees for impacted customers, and our foundation donated $2.6 million for hurricane relief efforts.”

 

Chief Financial Officer John Shrewsberry said, “Wells Fargo reported $4.6 billion of net income in the third quarter, which included the impact of the $1 billion, or $(0.20) per share, discrete litigation accrual. We continued to see good credit performance and our liquidity and capital remained exceptionally strong. During the quarter, our first under our 2017 Capital Plan, we returned $4.0 billion to shareholders through common stock dividends and net share repurchases, up from $3.4 billion in the second quarter. We remain committed to our target of $2 billion of expense reductions by the end of 2018 which will be reinvested in the business and an additional $2 billion by the end of 2019 intended to go to the bottom line.”