Wells Fargo 2013 Annual Report Download - page 5

To Our Owners,
2013 was another great year
thanks to the dedication of our
more than 264,000 team members
working together toward our
common vision: To satisfy all our
customers’ financial needs and
help them succeed financially.
Our focus on serving customers
drove outstanding results.
In2013, WellsFargo generated
record earnings for the fifth
consecutive year— infact, we
were the most profitable U.S.
bank— andranked as the world’s
most valuable bank by market
capitalization.
Accomplishments like these are no accident. They are
aresult of:
•  Having the right people— team members who work
together to fulfill our customers’ financial needs.
•  Doing business in the right markets— both domestically
and internationally.
•  Operating the right business model— businesses
diversified by opportunity, size, and geography that
can perform well across a variety of economic and
interest rate environments.
We also understand and embrace the critical role we
play in our customers’ lives and communities. Although
the U.S. economy is rebounding, it has been a slow and
uneven recovery with many people continuing to struggle
to find jobs, start businesses, or save for the future.
We believe banking— andWellsFargo— isat its best
when supporting the “realeconomy” by creating new jobs,
helping businesses grow, and promoting the financial
well-being of individuals. For us, this means keeping
deposits safe, lending responsibly and fairly, helping
students pay for college and customers plan for their
financial futures, supplying needed capital to businesses
of all sizes, and investing in communities. Italso
means instilling confidence in our customers as their
financial partner— from providing checking accounts
and automobile loans to treasury management and
investment banking services.
As we have grown over the years, we have never
lost our focus on the basics of banking— providing
our customers products and services when, where, and
how they need them— andwe’ve never lost touch with
our roots as a “MainStreet” financial provider, even as
we’ve developed a global reach to support our business
customers. These roots and our vision provide the
foundation for WellsFargo’s continued success.
Financial results
In2013, we enjoyed another strong year. Our net income
for the year was $21.9billion, up 16percent from 2012.
Diluted earnings per common share rose 16percent to
$3.89. Our 2013 revenue of $83.8billion was balanced
between net interest income and noninterest income,
reflecting the strength of our diversified business model.
Each primary business segment grew net income year
over year: Community Banking by 21percent, Wholesale
Banking by 5percent, and Wealth, Brokerage and
Retirement by 29percent.
We increased loans and deposits, a good sign
for the overall economy. Total loans finished 2013 at
$825.8billion, up 3percent from 2012. Loan growth
occurred across multiple portfolios, including commercial
loans, mortgages, credit cards, and automobile lending.
Total deposits reached a record $1.1trillion, up 8percent
from the prior year.
Credit quality continued to improve as 2013 credit
losses fell to $4.5billion, a 50percent improvement over
$9.0billion in2012. Net charge-os dropped to their
lowest levels in recent history— 0.47percent of average
loans in fourth quarter 2013, compared with 1.05percent
in fourth quarter 2012.
