Wells Fargo (WFC) investor relations material

Economic and client environment

• Client behavior has remained stable and resilient, with strong activity across consumer and commercial segments.

• Consumer spending is robust, with debit and credit card spend up 9% year-on-year in May, driven partly by higher gas prices.

• Employment remains strong, supporting good credit performance across portfolios.

• Rising debt levels are offset by income growth, keeping debt-to-income ratios healthy for most clients.

• Lower-income clients face more financial pressure, while those with investments or liquidity are faring well.

Consumer banking and lending

• Checking account growth has improved, with net growth up almost every quarter for the past 11-12 quarters.

• Credit card sales through branches have increased, and new product vintages from 2022-2024 are now profitable.

• Wealth management services for affluent clients, integrated into the consumer segment, are expected to drive further growth.

• Auto lending has expanded, focusing primarily on prime customers, with 70% of new originations above a 700 FICO score.

Wealth management

• Significant investments in people, technology, and products have driven momentum across three primary channels.

• Attrition among financial advisors has dropped, and recruitment of high-quality teams has increased.

• Technology upgrades, including a modern advisor workstation, have been completed.

• The independent advisor channel is growing rapidly, with increased recruitment from both traditional and independent providers.