Wells Fargo (WFC) Bernstein 42nd Annual Strategic Decisions Conference summary

Macroeconomic and industry outlook

• Consumer and business financial health remains strong, with robust spending and low delinquencies.

• Businesses are cautious but continue to perform well and pursue strategic initiatives.

• Oil prices and global events are key risks, but current business conditions are favorable.

• Volatility is expected to persist, but positive trend lines support continued confidence.

Post-asset cap environment and growth strategy

• Removal of the asset cap and consent orders has enabled renewed focus on sustainable, intelligent growth.

• Client relationships have strengthened, with many deposits returning and positive external reception.

• Growth is prioritized across consumer banking, commercial banking, and investment banking, excluding mortgage.

• Investments in marketing, hiring, and product updates are driving increases in active accounts and engagement.

• Commercial and investment banking are seeing fee-based growth and market share gains.

Financial performance and profitability

• Revenue growth is outpacing expenses, supporting higher ROTCE targets.

• Initial growth may compress NIM, but is expected to be accretive to ROTCE.

• Net interest income guidance of ~$50 billion for 2023 is supported by loan and deposit growth.

• Deposit mix is normalizing as commercial deposits return, with mid-single digit growth expected.