Wells Fargo 2012 Annual Report Download - page 42

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Earnings Performance (continued)
Table 6 allocates the changes in net interest income on a
taxable-equivalent basis to changes in either average balances or
average rates for both interest-earning assets and
interest-bearing liabilities. Because of the numerous
simultaneous volume and rate changes during any period, it is
not possible to precisely allocate such changes between volume
and rate. For this table, changes that are not solely due to either
volume or rate are allocated to these categories on a pro-rata
basis based on the absolute value of the change due to average
volume and average rate.
Table 6: Analysis of Changes in Net Interest Income
Year ended December 31,
2012 over 2011 2011 over 2010
(in millions) Volume Rate Total Volume Rate Total
Increase (decrease) in interest income:
Federal funds sold, securities purchased under resale
agreements and other short-term investments $ (12) 45 33 89 26 115
Trading assets 78 (161) (83) 363 (21) 342
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies (25) 3 (22) 62 (54) 8
Securities of U.S. states and political subdivisions 499 (161) 338 424 (181) 243
Mortgage-backed securities:
Federal agencies 687 (1,051) (364) 135 (575) (440)
Residential and commercial 129 (482) (353) 9 (788) (779)
Total mortgage-backed securities 816 (1,533) (717) 144 (1,363) (1,219)
Other debt securities 475 (424) 51 349 (510) (161)
Total debt securities available for sale 1,765 (2,115) (350) 979 (2,108) (1,129)
Mortgages held for sale 465 (284) 181 24 (116) (92)
Loans held for sale (26) 9 (17) (100) 57 (43)
Loans:
Commercial:
Commercial and industrial 680 (593) 87 373 (665) (292)
Real estate mortgage 133 115 248 147 180 327
Real estate construction (182) 21 (161) (385) 389 4
Lease financing (13) (42) (55) (45) (218) (263)
Foreign 77 (34) 43 215 (311) (96)
Total commercial 695 (533) 162 305 (625) (320)
Consumer:
Real estate 1-4 family first mortgage 367 (786) (419) (440) (676) (1,116)
Real estate 1-4 family junior lien mortgage (424) (45) (469) (473) (120) (593)
Credit card 167 (76) 91 (120) (73) (193)
Other revolving credit and installment 13 (163) (150) (111) (173) (284)
Total consumer 123 (1,070) (947) (1,144) (1,042) (2,186)
Total loans 818 (1,603) (785) (839) (1,667) (2,506)
Other (21) 27 6 (35) 31 (4)
Total increase (decrease) in interest income 3,067 (4,082) (1,015) 481 (3,798) (3,317)
Increase (decrease) in interest expense:
Deposits:
Interest-bearing checking (12) (9) (21) (13) (19) (32)
Market rate and other savings 65 (309) (244) 112 (364) (252)
Savings certificates (135) (78) (213) (252) - (252)
Other time deposits 5 (48) (43) (30) (4) (34)
Deposits in foreign offices 13 (40) (27) 13 - 13
Total interest-bearing deposits (64) (484) (548) (170) (387) (557)
Short-term borrowings - - - 9 (21) (12)
Long-term debt (362) (506) (868) (1,227) 317 (910)
Other liabilities (25) (46) (71) 122 (33) 89
Total increase (decrease) in interest expense (451) (1,036) (1,487) (1,266) (124) (1,390)
Increase (decrease) in net interest income
on a taxable-equivalent basis $ 3,518 (3,046) 472 1,747 (3,674) (1,927)
40