Wells Fargo 2005 Annual Report Download - page 8

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6
identification to help these customers move from the risky,
cash economy to secure, reliable financial services.
• In Los Angeles and Orange counties, we launched a pilot
program to offer mortgage loans to employed, taxpaying cus-
tomers who have an individual taxpayer identification number
(ITIN) issued by the IRS but do not have a Social Security
number.1If successful, we hope to roll this mortgage product
out across all 23 of our community banking states.
• We increased the Company’s quarterly dividend more than
8 percent to 52 cents a share, the 18th consecutive year we’ve
increased our dividend, our 23rd dividend increase since 1988.
We’re the nation’s 13th largest dividend payer and one of less
than 3 percent of more than 10,000 North American-listed,
dividend-paying common stocks classified as a “Dividend
Achiever”—a publicly-traded company that has increased its
dividends for the last 10 or more consecutive years.2If you
had invested $10,000 in 1986 in our predecessor company,
Norwest Corporation, it would have been worth $435,000
at year-end 2005 with dividends reinvested.
• Our total managed and administered assets rose 6 percent
to $880 billion. The new Wells Fargo Advantage FundsSM —
the result of the merger of Wells Fargo Funds®and Strong
Funds®—is the nation’s 18th-largest mutual fund company,
managing $108 billion in assets, with 120 funds spanning
almost all asset classes and investment styles.
• We announced a 10-point commitment to integrate
environmental responsibility into our business practices.
This includes a pledge to provide more than $1 billion in the
next five years, in lending, investments and other financial
commitments to environmentally-beneficial business oppor-
tunities including sustainable forestry, renewable energy,
water-resource management, waste management, “green
home” construction and development, and energy efficiency.
1 Qualified individuals must have been customers of Wells Fargo Bank for six months, paid U.S. taxes
for two years,must be able to prove two years of California residence.
2 Mergent,Inc.
Double-Digit Annual Compound
Growth – for 20 Years
Total Stockholder Return
Years EPS Revenue Wells Fargo S&P 500®
5 14% 10% 5% 0.5%
10 11 13 17 9
15 12 12 21 11
20 14 12 21 12
Impressive results, indeed. We’re very proud of them. But, believe
it or not, we can do even better. In recent annual reports, we told
you that we’ve not been growing our business banking and
investment businesses at a rate consistent with their potential.
I’m pleased to report we’re making significant progress.
Business Banking
Just two years ago, our average Business Banking customer—
businesses with annual revenue up to $20 million—had only
about 2.7 products with us—dead last in cross-sell among all
our businesses. Also, less than one of every four of our Business
Banking customers did their personal banking with Wells Fargo.
Less than one of every 10 gave us their investment business.
Two years ago we said that by 2008 we wanted to double rev-
enue and cross-sell and dramatically increase our market share
for both deposits and loans from our small business customers.
I’m pleased to report that our Business Banking cross-sell grew
11 percent for the year. Our Business Banking team surpassed
an average of 3.0 products (or “solutions”) per customer.
The number of business customers actively using online banking
grew 24 percent. Our Business Banking deposits—which grew
10 percent in 2004—rose another 9 percent in 2005. During
those same years our loans and lines of credit—primarily less
than $100,000, sold to our small business customers through
our banking stores, online, direct mail, teleconsulting and
in-bound calls—rose 17 percent and 18 percent, respectively.
Our business customers are buying their financial products
from someone. Since we believe we can offer them a superior
value, there’s no reason we shouldn’t earn all their financial
services business—business, personal and investments. In 2004
Wells Fargo was #1 for the third year in a row in loans under
$100,000 to small businesses, with 15 percent market share
nationally. We also were the #1 lender to small businesses in
low-to-moderate income neighborhoods, with almost 16 percent
market share, nationwide.