Wells Fargo 2012 Annual Report Download - page 105

Forward-Looking Statements
This Report contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as
“anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,”
“expects,” “target,” “projects,” “outlook,” “forecast,” “will,”
“may,” “could,” “should,” “can” and similar references to future
periods. Examples of forward-looking statements in this Report
include, but are not limited to, statements we make about: (i)
future results of the Company, including the potential effect of
recent strong loan and deposit growth on future financial
performance; (ii) our targeted efficiency ratio range as part of
our expense management initiatives; (iii) future credit quality
and expectations regarding future loan losses in our loan
portfolios and life-of-loan estimates; our foreign loan exposure;
the level and loss content of NPAs and nonaccrual loans; the
appropriateness of the allowance for credit losses, including our
current expectation of future allowance releases in 2013; and the
reduction or mitigation of risk in our loan portfolios and the
effects of loan modification programs; (iv) future capital levels
and our estimate regarding our Tier 1 common equity ratio under
proposed Basel III capital standards as of December 31, 2012; (v)
the quality of our residential mortgage loan servicing portfolio,
our mortgage repurchase exposure and exposure relating to our
mortgage foreclosure practices; (vi) our expectations regarding
the satisfaction of our obligations under our settlement in
principle with the Department of Justice and other federal and
state government entities related to our mortgage servicing and
foreclosure practices, including our estimates of the impact of
the settlement on our future financial results; (vii) the expected
outcome and impact of legal, regulatory and legislative
developments, including the Dodd-Frank Act; and (viii) the
Company’s plans, objectives and strategies, including our belief
that we have more opportunity to increase cross-sell of our
products.
Forward-looking statements are based on our current
expectations and assumptions regarding our business, the
economy and other future conditions. Because forward-looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Our actual results may differ materially from
those contemplated by the forward-looking statements. We
caution you, therefore, against relying on any of these forward-
looking statements. They are neither statements of historical fact
nor guarantees or assurances of future performance. While there
is no assurance that any list of risks and uncertainties or risk
factors is complete, important factors that could cause actual
results to differ materially from those in the forward-looking
statements include the following, without limitation:
x current and future economic and market conditions,
including the effects of declines in housing prices, high
unemployment rates, U. S. fiscal debt, budget and tax
matters, the sovereign debt crisis and economic difficulties
in Europe, and the overall slowdown in global economic
growth;
x our capital and liquidity requirements (including under
regulatory capital standards, such as the proposed Basel III
capital standards, as determined and interpreted by
applicable regulatory authorities) and our ability to generate
capital internally or raise capital on favorable terms;
x financial services reform and other current, pending or
future legislation or regulation that could have a negative
effect on our revenue and businesses, including the Dodd-
Frank Act and other legislation and regulation relating to
bank products and services, as well as the extent of our
ability to mitigate the loss of revenue and income from
financial services reform and other legislation and
regulation;
x the extent of our success in our loan modification efforts, as
well as the effects of regulatory requirements or guidance
regarding loan modifications or changes in such
requirements or guidance;
x the amount of mortgage loan repurchase demands that we
receive and our ability to satisfy any such demands without
having to repurchase loans related thereto or otherwise
indemnify or reimburse third parties, and the credit quality
of or losses on such repurchased mortgage loans;
x negative effects relating to our mortgage servicing and
foreclosure practices, including our ability to meet our
obligations under the settlement in principle with the
Department of Justice and other federal and state
government entities, as well as changes in our procedures or
practices and/or industry standards or practices, regulatory
or judicial requirements, penalties or fines, increased
servicing and other costs or obligations, including loan
modification requirements, or delays or moratoriums on
foreclosures;
x our ability to realize our efficiency ratio target as part of our
expense management initiatives when and in the range
targeted, including as a result of business and economic
cyclicality, seasonality, changes in our business composition
and operating environment, growth in our businesses
and/or acquisitions, and unexpected expenses relating to,
among other things, litigation and regulatory matters;
x losses relating to Super Storm Sandy, including the result of
damage or loss to our collateral for loans in our consumer
and commercial loan portfolios, the extent of insurance
coverage, or the level of government assistance for our
borrowers;
x the effect of the current low interest rate environment or
changes in interest rates on our net interest margin and our
mortgage originations, MSRs and MHFS;
x hedging gains or losses;
x a recurrence of significant turbulence or disruption in the
capital or financial markets, which could result in, among
other things, reduced investor demand for mortgage loans, a
reduction in the availability of funding or increased funding
costs, and declines in asset values and/or recognition of
OTTI on securities held in our available-for-sale portfolio
due to volatility or changes in interest rates, foreign
exchange rates and/or debt, equity and commodity prices;
x our ability to sell more products to our existing customers
through our cross-selling efforts;
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