Wells Fargo 2014 Annual Report Download - page 49

Table 9b - Wholesale Banking
(in millions, except average balances which are in billions)
Net interest income
Noninterest income:
Service charges on deposit accounts
Trust and investment fees:
Brokerage advisory, commissions and other fees
Trust and investment management
Investment banking
Total trust and investment fees
Card fees
Other fees
Mortgage banking
Insurance
Net gains from trading activities
Net gains (losses) on debt securities
Net gains from equity investments
Other income of the segment
Total noninterest income
$
2014
11,955
1,663
333
1,824
1,803
3,960
262
2,048
370
1,352
872
335
636
29
11,527
Year ended December 31,
2013 2012
12,298 12,648
1,559 1,383
270 235
1,789 1,672
1,839 1,341
3,898 3,248
231 200
1,993 2,219
426 407
1,559 1,585
1,211 1,426
45 (13)
425 511
419 478
11,766 11,444
Total revenue 23,482 24,064 24,092
Provision (reversal of provision) for credit losses
Noninterest expense:
Personnel expense
Equipment
Net occupancy
Core deposit and other intangibles
FDIC and other deposit assessments
Outside professional services
Operating losses
Other expense of the segment
Total noninterest expense
Income before income tax expense and noncontrolling interest
Income tax expense
Net income from noncontrolling interest
Net income
Average loans
Average core deposits
$
$
(266)
7,093
186
442
391
269
1,107
98
3,389
12,975
10,773
3,165
24
7,584
313.4
274.0
(445)
6,763
194
454
425
259
1,023
43
3,217
12,378
12,131
3,984
14
8,133
287.7
237.2
286
6,315
268
441
473
313
953
193
3,126
12,082
11,724
3,943
7
7,774
273.8
227.0
Wholesale Banking reported net income of $7.6 billion in
2014, down $549 million, or 7%, from $8.1 billion in 2013, which
was up 5% from $7.8 billion in 2012. The year over year decrease
in net income during 2014 was the result of lower revenues,
increased noninterest expense and higher provision for credit
losses. The year over year increase in net income during 2013
was the result of improvement in provision for credit losses and
stable revenue performance partially offset by increased
noninterest expense. Revenue in 2014 of $23.5 billion decreased
$582 million, or 2%, from $24.1 billion in 2013, as growth in
asset backed finance, asset management, commercial real estate
brokerage, corporate banking, equipment finance, international,
principal investing and treasury management was more than
offset by lower PCI resolution income as well as lower crop
insurance fee income. Revenue in 2013 of $24.1 billion was flat
from 2012, as business growth from asset backed finance, asset
management, capital markets and commercial real estate was
offset by lower PCI resolution income.
Net interest income of $12.0 billion in 2014 decreased
$343 million, or 3%, from 2013, which was down 3% from 2012.
The decrease in 2014 and 2013 was due to lower PCI resolutions
and net interest margin compression due to declining loan yields
and fees that was partially offset by increased interest income
primarily from strong loan growth. Average loans of
$313.4 billion in 2014 increased $25.7 billion, or 9%, from
$287.7 billion in 2013, which was up 5% from $273.8 billion in
2012. The loan growth in 2014 and 2013 was broad based across
many Wholesale Banking businesses. Average core deposits of
$274.0 billion in 2014 increased $36.8 billion, or 16%, from
2013 which was up 4%, from 2012, reflecting continued strong
customer liquidity for both years.
Noninterest income of $11.5 billion in 2014 decreased
$239 million, or 2%, from 2013 as business growth in asset
backed finance, asset management, commercial real estate
brokerage, corporate banking, equipment finance, international,
principal investing and treasury management was more than
offset by lower customer accommodation related gains on
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