Last Updated: 19th November 2022
Wells Fargo is a US headquartered multi-national financial services company. Its primary business is Wells Fargo Bank - the fourth largest bank in the United States by total assets with over 8,000 branches across the country.
Employees: 107,700
Revenue: $51bn for FY2021
HQ Location: San Francisco, California and operational HQ in Manhattan, New York
Their vision and priorities:
Top priority is a new risk management approach. The company has been affected by poor compliance and processes that is incurring fines today.
Digitalisation is essential if the company is going to compete in the future. The new CEO (joined 2019) has declared that the company needs to put technology at the heart of the business.
What they do:
Provide a range of financial products to consumers, private and large public companies.
Banking and Insurance, to Investment and Asset Management products.
Three things to know right now
A focus on risk, control and regulatory
In the 2021 Annual Report CEO Charles W. Scharf highlights the focus on changing the culture and priorities of the company, including prioritising the development and implementation of an appropriate risk and control framework across the company.
“We are laser focused on meeting our own expectations and those of our regulators”
New leaders
Since the CEO joined in 2019, 11 of the 16 Operating Committee members are new to the company.
This indicates a lot of new ideas and strategies that will materially affect how this company operates moving forwards.
“We embrace direct conversations to push us to improve”
Technology
“At the heart of our ability to compete over the long term will be a different approach to technology”
a platform based, APO-driven architecture to allow the company to offer similar services across multiple banking products - see their Digital Infrastructure Strategy announced in 2021
Technology first approach to business to allow the company to compete with fintech companies.
“We won’t win by running the company as we have for the past few decades. If we don’t change how we approach our customers, our company will go through a process of slow and steady decline”
What does each business unit do?
Personal
Providing checking and savings accounts, credit cards and loans to consumers
Investing and Wealth Management
Self-serve and assisted investment products and services for consumers and high net worth individuals.
Commercial Banking
Banking services for private, family owned and certain public companies, including bank services and commercial financing and treasury management.
Small Business
Providing checking and savings accounts, credit cards, loans, merchant services (point of sale), and payroll services to small companies.
Corporate & Investment Banking
Broad industry expertise and services for large organisations. Access to institutional finance, foreign exchange, commercial real estate and global services.
Their financial calendar
Q1: January-March - Earnings 14th April
Q2: April-June - Earnings 18th July
Q3: July-September - Earnings 13th October
Q4: September-December - Earnings 17th January ‘24
Positives from the last earnings report:
Revenue of $19.5bn - up 4%
“We continue to invest in our technology platforms, digital platforms and an expanded product set”
Higher interest rates positively impacts revenue
Challenges from the last earnings report:
$2bn operating losses related to litigation, customer remediation and regulatory matters.
Average deposits of $1.4 trn, down 3%
Next Earnings Report:
13th January 2023
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