SAN FRANCISCO--(BUSINESS WIRE)--
Wells Fargo & Company (NYSE: WFC) today commented on the Federal Reserve’s stress test results.
In light of the impact on the global economy from the COVID-19 pandemic, the Federal Reserve required the nation’s largest banks, including Wells Fargo, to update and resubmit their capital plans in November 2020. The Federal Reserve released their stress test results today.
“Today’s stress test results continue to demonstrate Wells Fargo’s strong capital position and the benefits of our diverse franchise and sound financial risk management practices,” said CEO Charlie Scharf. “We remain committed to supporting our customers, employees, and communities during this challenging time, and we will continue to take appropriate measures to maintain strong capital and liquidity levels.”
In addition to announcing Wells Fargo’s stress test results, the Federal Reserve today announced that it has extended, until March 31, 2021, the deadline for the Federal Reserve to provide notice of whether Wells Fargo’s stress capital buffer requirement will be recalculated. In addition, the Federal Reserve is revising the capital distribution authorization requirements it announced on September 30, 2020. Specifically, as long as Wells Fargo does not increase the amount of its common stock dividends, the Federal Reserve has authorized Wells Fargo, for the first quarter of 2021, to:
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pay common stock dividends and make share repurchases that, in the aggregate, do not exceed an amount equal to the average of the firm’s net income for the four preceding calendar quarters;
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make share repurchases that equal the amount of share issuances related to expensed employee compensation; and
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redeem and make scheduled payments on additional tier 1 and tier 2 capital instruments.
“Returning capital to shareholders remains a priority for Wells Fargo,” said Scharf. “While we expect to have modest capital distribution capacity in the first quarter, we continue to have significant excess capital above regulatory requirements.”
The company will provide additional information on its capital distribution plans during its fourth quarter earnings call on January 15, 2021.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.92 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, investment and mortgage products and services, as well as consumer and commercial finance, through 7,200 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 31 countries and territories to support customers who conduct business in the global economy. Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo.
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 share 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 expectations 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.
News Release Category: WF-CF
Source: Wells Fargo & Company