Wells Fargo 2005 Annual Report Download - page 9

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7
commission discounts with a linked WellsTrade®account. In
just five months, balances across all our deposit and brokerage
accounts increased over $4 billion.
Our Investment Management and Trust businesses are growing,
too. In addition to more basic wealth planning services—such as
trust and estate services —we’ve added alternative asset classes
and we’re offering “best of class” outside money managers for
our high net worth clients. They, in turn, have given us more
of their business. As a result, we’ve achieved five consecutive
quarters of record sales, a 40 percent increase in revenue year
over year from wealth planning and insurance.
Good progress but, here again, we can and must do better,
faster. Our market share of our customers’ investment business
should be two to three times higher than it is. There’s no reason
why we can’t attract many more new customers. More of our
Private Banking and Personal Trust customers should want to give
us their investment management and brokerage business. We also
should be satisfying more of the investment needs of our small
business customers and the executives of our middle-market, real
estate, and large corporate customers. We should be their first
choice for personal investment and banking business.
Preparing for more growth
We continue to invest in new stores and operation centers to
help satisfy all our customers’ financial needs. During 2005,
we opened 92 banking stores, remodeled another 485 banking
stores to improve customer service, and opened 47 mortgage
stores, 20 consumer finance stores, seven regional commercial
banking offices and two commercial real estate offices. We also
completed four major operations facilities (and are about to
complete a fifth):
•West Des Moines, Iowa Our mortgage and consumer credit
group opened a 281,000 square foot center for about 1,500
team members. Two more buildings are scheduled to open
in mid-2006 and in 2007—for a total of almost one million
square feet—on a 160-acre campus, large enough to accom-
modate even more expansion.
Top 10 U.S. Full-Service Online Brokers
1. Smith Barney 6. Piper Jaffray
2. Wells Fargo 7. DB Alex Brown
3. UBS 8. A.G. Edwards
4. Wachovia 9. McDonald Investments
5. Merrill Lynch 10. Edward Jones
Source: Watchfire GomezPro 10/31/05
Private Client Services
Our private banking and investment business—Private Client
Services—also is growing. It ended 2005 with double-digit
revenue growth in the fourth quarter. We built the foundation for
this growth by integrating all banking, investment and insurance
services to serve all of our clients’ wealth management needs.
We’ve significantly increased the number of investment
professionals serving clients. We now have more than 700 private
bankers in our banking stores and wealth management offices,
up 150 percent the past two years—and 2,500 licensed bankers
and financial consultants, up more than 85 percent in three years.
In 2005, we were the first in our industry to announce low- and
no-cost online stock and mutual fund trades to benefit our most
loyal customers. Watchfire GomezPro ranked us the nation’s
second best, full-service on-line brokerage.
As a result, we’re earning more of our clients’ business. Our
loans to Private Banking customers grew 15 to 20 percent each
of the last five years. The last two years, deposits rose 38 percent,
and brokerage assets 14 percent. More than one million of our
customers now have a Wells Fargo Portfolio Management
Account®, or PMA®account—which combines all a customer’s
relationships with Wells Fargo, including checking, savings,
mortgage, personal loans, trust and brokerage. This relationship
product offers rewards, discounts, competitive money market
rates, bonus interest rates on linked savings accounts and CDs,
no monthly service fees on linked accounts, a Wells Fargo Visa®
Credit Card with waived fee for the Retention Rewards®program,
no annual fees on select line of credit accounts, free checks, and
Wells Fargo has achieved double-digit,
annual compound growth in revenue and
earnings per share, with total stockholder
return about double the S&P 500 for the
past five, 10, 15 and 20 years.