Wells Fargo & Company (NYSE:WFC) today reported Retail Banking customer
activity data for October 2016. Tim Sloan, President and Chief Executive
Officer, noted, “As part of our ongoing commitment to transparency, we
are providing a monthly update of the trends we are seeing in Retail
Banking. In October, we were pleased to see that in general our existing
customers were actively using their accounts and valued their
relationships with Wells Fargo. As expected, we continued to see
declines in new account openings. We remain focused on meeting our
customers’ financial needs by providing great service and quality
products and will provide our next update in mid-December.”
Mary Mack, head of Community Banking, added, “Trends continued as
expected in October, with relatively stable deposit balances and
transaction levels, but slower new account openings. Because the sales
practices settlement was announced on September 8th, October
data reflects the first full month of impact. For comparative purposes
it is also important to note that October 2016 had one fewer business
day than both September 2016 and October 2015. That being said, we
recognize we have work to do and we are focused on strengthening our
relationships with existing customers and building new ones with
potential customers.”
Key Takeaways
Customer Interactions
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Customer interactions with tellers were down 10% from October 2015
(year-over-year “YoY”) as customers increasingly transacted through
mobile channels, with digital sessions up 7% YoY
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Branch banker interactions were down from September 2016 (linked month
“LM”) and YoY primarily driven by a slowdown in new account openings
Deposit Balances and Accounts
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Average consumer and small business deposit balances were in line LM
and up 8% YoY
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The number of primary checking account customers, who are by
definition the most active customers, was in line LM and up 3.9% YoY
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Consumer account opens were down 27% LM and 44% YoY primarily due to a
full month impact of customer reaction to the sales practices
settlement and reduced marketing activities
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Customer-initiated account closures were up modestly, 3%, both LM and
YoY
Debit and Credit Cards
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Customers continued to actively use their debit and credit cards
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Debit point-of-sale active cards and transactions were both up LM
and YoY
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Point-of-sale active credit card accounts were up YoY and were
unchanged from September 2016; purchase volume was up 8% YoY and
in line with September 2016; credit card balances outstanding were
up both LM and YoY
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New credit card applications continued their downward trend with
applications down 35% LM and 50% YoY primarily due to reduced
marketing activities and a full month impact of customer reaction to
the sales practices settlement
Customer Experience Surveys
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Customer loyalty scores were down both LM and YoY, with scores showing
some improvement from lows seen early in October
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Survey results of satisfaction with most recent visit were 73.9% in
October, down modestly LM and down from 77.4% in October 2015
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Oct 2016
change from: (1)
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(in millions, unless otherwise noted)
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Oct
2016
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Sept
2016
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Aug
2016
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Oct
2015
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Sept
2016
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Oct
2015
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Customer Interactions (2)
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Total Branch Interactions
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52.2
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53.8
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56.2
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58.4
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-3
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%
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-11
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%
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Teller Transactions
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49.2
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50.5
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52.4
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54.6
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-3
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%
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-10
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%
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Branch Banker Interactions
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3.0
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3.3
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3.9
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3.8
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-11
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%
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-22
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%
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Total Phone Banker Interactions
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9.1
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9.2
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9.9
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9.2
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-1
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%
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0
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%
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Total Digital (Online and Mobile) Secure Sessions
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477.2
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488.4
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497.8
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447.4
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-2
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%
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7
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%
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Total Digital (Online and Mobile) Active Customers (3)
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27.4
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27.5
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27.4
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Consumer Checking Account Opens
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0.3
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0.4
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0.6
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0.6
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-27
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%
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-44
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%
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Consumer Checking Account Customer-Initiated Closures (4)
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0.2
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0.2
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0.2
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0.2
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3
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%
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3
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%
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Deposit Balance and Account
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Consumer and Small Business Banking Deposits (period end, $ in
billions)
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$
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745.0
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$
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751.2
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$
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744.7
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$
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698.5
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-1
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%
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7
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%
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Consumer and Small Business Banking Deposits (average, $ in
billions)
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$
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744.7
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$
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745.7
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$
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739.7
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$
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690.2
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0
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%
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8
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%
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Primary Consumer Checking Customers (5)
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23.6
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23.7
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23.6
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22.7
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0
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%
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4
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%
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Primary Consumer Checking Customers YoY Growth (5)
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3.9
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%
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4.5
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%
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4.7
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%
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5.7
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%
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Debit Cards (Consumer and Business)
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Point-of-Sale Active Cards
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26.3
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26.1
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26.2
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25.4
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1
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%
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3
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%
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Point-of-Sale Transactions
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686.0
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658.3
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685.8
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638.6
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4
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%
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7
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%
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Consumer Credit Cards
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Point-of-Sale Active Accounts
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7.8
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7.8
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7.9
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7.2
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0
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%
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9
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%
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Applications
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0.2
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0.3
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0.4
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0.4
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-35
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%
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-50
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%
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Balances (period end, $ in billions)
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$
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26.9
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$
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26.7
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$
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26.7
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$
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24.7
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1
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%
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9
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%
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Purchase Volume ($ in billions)
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$
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5.6
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$
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5.6
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$
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6.0
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$
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5.2
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2
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%
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8
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%
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Customer Experience Survey Scores with Branch
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Customer Loyalty
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52.3
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%
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57.7
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%
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62.6
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%
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61.2
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%
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Overall Satisfaction with Most Recent Visit
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73.9
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%
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75.7
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%
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78.0
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%
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77.4
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%
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Percentage changes are calculated using whole numbers. If the %
change were based on the rounded amounts presented, it would
produce a different result for Branch Banker Interactions, Phone
Banker Interactions, Consumer Checking Account Opens, Consumer
Checking Account Customer-Initiated Closures, Debit Card POS
Active Cards, Consumer Credit Cards POS Active Accounts, Consumer
Credit Card Applications and Consumer Credit Card Purchase Volume,
but all differences are attributable to rounding. (1) October 2016
had 20 business days, September 2016 had 21 business days while
October 2015 had 21 business days. (2) A customer communication or
transaction qualifies as a customer traffic interaction, which is
consistent with the definition used by management for each
customer channel presented. Preparation of customer traffic
interaction metrics requires the application of interpretive
judgement for each communication or transaction. Management uses
these metrics to monitor customer traffic trends within the
Company’s Retail Banking business. (3) Primarily includes retail
banking, consumer lending, small business and business banking
customers. (4) Does not include accounts closed by the bank. (5)
Customers who actively use their checking account with
transactions such as debit card purchases, online bill payments,
and direct deposit.
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Conference Call
The Company will host a live conference call on Thursday, November 17,
at 7 a.m. PT (10 a.m. ET). You may participate by dialing 866-872-5161
(U.S. and Canada) or 706-643-1962 (International). The call will also be
available online at https://www.wellsfargo.com/about/investor-relations/events/
and https://engage.vevent.com/rt/wells_fargo_ao~19183872.
A replay of the conference call will be available beginning at 10 a.m.
PT (1 p.m. ET) on Thursday, November 17 through Thursday, December 1.
Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID #31498547. The replay will also
be available online at https://www.wellsfargo.com/about/investor-relations/events/
and https://engage.vevent.com/rt/wells_fargo_ao~19183872.
Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements about our future
financial performance and business. Because forward-looking statements
are based on our current expectations and assumptions regarding the
future, they are subject to inherent risks and uncertainties. Do not
unduly rely on forward-looking statements as actual results could differ
materially from expectations. Forward-looking statements speak only as
of the date made, and we do not undertake to update them to reflect
changes or events that occur after that date. For information about
factors that could cause actual results to differ materially from our
expectations, refer to our reports filed with the Securities and
Exchange Commission, including the discussion under “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2015 and
our Quarterly Report on Form 10-Q for the quarter ended September 30,
2016, as filed with the Securities and Exchange Commission and available
on its website at www.sec.gov.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Founded in 1852
and headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial finance
through more than 8,600 locations, 13,000 ATMs, the internet
(wellsfargo.com) and mobile banking, and has offices in 42 countries and
territories to support customers who conduct business in the global
economy. With approximately 269,000 team members, Wells Fargo serves one
in three households in the United States. Wells Fargo & Company was
ranked No. 27 on Fortune’s 2016 rankings of America’s largest
corporations. Wells Fargo’s vision is to satisfy our customers’
financial needs and help them succeed financially.
