AP NEWS
ADVERTISEMENT
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Wells Fargo Issues Statement Regarding the Federal Reserve’s Stress Test Results

June 28, 2021 GMT

SAN FRANCISCO--(BUSINESS WIRE)--Jun 28, 2021--

Wells Fargo & Company (NYSE: WFC) today announced that it has completed the 2021 Comprehensive Capital Analysis and Review (CCAR) stress test process. The Company expects its stress capital buffer (SCB) to be 3.1%, which represents a percentage amount of incremental capital the company must hold above its minimum regulatory capital requirements. The Federal Reserve Board (FRB) has indicated that it will publish the Company’s final SCB by August 31, 2021.

The Company expects to increase its third quarter 2021 common stock dividend to $0.20 per share from $0.10 per share, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting in July. Additionally, the Company’s capital plan includes common share repurchases 1 of approximately $18 billion for the four-quarter period beginning third quarter 2021 through second quarter 2022. The Company will continue to prudently manage capital levels based on its internal capital adequacy framework.

ADVERTISEMENT

“We are pleased that this year’s CCAR stress test confirmed the significant strength of our capital position. Since the COVID-19 pandemic began, we have built our financial strength while providing significant support to our employees, customers, and communities, as well as continuing to remediate our legacy issues. We will continue to do so as we return a significant amount of capital to our shareholders,” said CEO Charlie Scharf. “The expected increase in our dividend is a priority, and our plan contemplates it will continue to increase as we grow earnings capacity, subject to future stress test results. We will also regularly evaluate market conditions, remaining pandemic related risks, and other risk factors, which may result in adjustments to the timing or amount of our expected capital actions.”

1 Gross basis: Total common stock repurchases before issuance amounts to employee benefit plans.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle market companies and small businesses in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health and a low-carbon economy. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.

ADVERTISEMENT

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

View source version on businesswire.com:https://www.businesswire.com/news/home/20210628005825/en/

CONTACT: Media

Peter Gilchrist, (704) 715-3213

Peter.gilchrist@wellsfargo.com

Investor Relations

John Campbell, (415) 396-0523

john.m.campbell@wellsfargo.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: FINANCE BANKING PROFESSIONAL SERVICES WHITE HOUSE/FEDERAL GOVERNMENT PUBLIC POLICY/GOVERNMENT

SOURCE: Wells Fargo & Company

Copyright Business Wire 2021.

PUB: 06/28/2021 05:35 PM/DISC: 06/28/2021 05:36 PM

http://www.businesswire.com/news/home/20210628005825/en