Wells Fargo & Company (NYSE: WFC) today announced that the Federal
Reserve Board has not objected to the Company’s 2018 Capital Plan under
the recently concluded Comprehensive Capital Analysis and Review (CCAR)
of the nation’s largest banks.
“We are pleased by today’s CCAR result, which demonstrates the strength
of our diversified business model, our sound financial risk management
practices and our strong capital position, and is aligned with our goal
to be the financial services leader in creating long-term shareholder
value,” said CEO Tim Sloan.
Wells Fargo’s 2018 Capital Plan covers the four-quarter period from the
third quarter of 2018 through the second quarter of 2019. The plan
enables the Company to begin prudently returning excess capital to
shareholders, relative to its internal target – an opportunity resulting
from capital built in recent years through continued stable earnings and
a lower level of risk-weighted assets. The Company’s internal capital
target is established in connection with a rigorous risk-based capital
adequacy assessment process that includes comprehensive current and
forward-looking evaluations of the Company’s capital position relative
to its risk profile and the operating environment.
As part of the plan, the Company expects that it will, subject to
approval by the Company’s Board of Directors, increase its third quarter
2018 common stock dividend to $0.43 per share from $0.39 per share. The
plan also includes higher levels of common stock repurchases1
– up to $24.5 billion for the four-quarter period (third quarter 2018
through second quarter 2019), compared with Wells Fargo’s 2017 Capital
Plan, which covers the third quarter of 2017 through the second quarter
of 2018 and includes up to $11.5 billion of common stock
repurchases1, of which $8.5 billion of common stock has
been repurchased1, 2 through the first quarter of 2018. In
addition, the Company may consider redemptions or repurchases of other
capital securities as part of the plan.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, investments, mortgage, and consumer and
commercial finance through 8,200 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 265,000 team members, Wells Fargo serves one
in three households in the United States. Wells Fargo & Company was
ranked No. 26 on Fortune’s 2018 rankings of America’s largest
corporations.
Cautionary Statement about Forward-Looking Statements
This news release contains forward-looking statements about our future
regulatory capital levels and possible future capital actions, including
common stock dividends and common stock repurchases. Forward-looking
statements speak only as of the date made, and we do not undertake to
update them. Actual capital levels and capital actions may vary
materially from the expectations described in this news release due to a
number of factors, including those described in our reports filed with
the Securities and Exchange Commission and available at www.sec.gov.
The amount and timing of any future common stock dividends or
repurchases will depend on the earnings, cash requirements and financial
condition of the Company, market conditions, capital requirements
(including under Basel capital standards), common stock issuance
requirements, applicable law and regulations (including federal
securities laws and federal banking regulations), and other factors
deemed relevant by the Company’s Board of Directors, and may be subject
to regulatory approval or conditions.
1 Gross basis: Total common stock repurchases before issuance
amounts to employee benefit plans.
2 From third quarter 2017 through first quarter 2018, common
stock issuances for employee benefit plans were $2.2 billion.
