Wells Fargo 2014 Annual Report Download - page 6

Our results also reflected our
commitment to protect the interests
of our stakeholders. For example,
in2014 the credit quality of our loans
was the best I can recall in my 33years
at the company. Credit losses fell to
$2.9billion, a 35percent improvement
over $4.5billion in2013. Net charge-
os as a percentage of average
loans remained near historic lows—
0.35percent in2014, compared with
0.56percent in2013.
WellsFargo is one of the
most valuable companies
intheworld
By market value as of Dec.31, 2014
(inbillions)
Apple 
ExxonMobil 
Microsoft 
Berkshire Hathaway 
Google 
PetroChina (China) 
Johnson & Johnson 
WellsFargo 
Walmart 
ICBC (China) 
U.S. companies except where stated
Source: Bloomberg
Our capital also grew, remaining
well above regulatory minimum levels.
At the end of 2014, our Common
Equity Tier1 capital was $137.1billion,
resulting in a Common Equity Tier1
capital ratio of 11.04percent under
BaselIII (General Approach). Under
BaselIII (Advanced Approach, fully
phased-in), our 2014 estimated
Common Equity Tier1 capital ratio
was 10.43percent.1
In2014, our shareholders continued
to see strong returns. Full-year return
on assets was 1.45percent, and full-
year return on equity was 13.41percent,
well within our target performance
ranges. We returned $12.5billion to
our shareholders through dividends
and net share repurchases. We
1 For more information regarding our regulatory capital and
related ratios, please see the “Financial Review — Capital
Management” section in this Report.
increased the quarterly dividend rate
by 17percent to 35cents per share,
and we purchased 87million shares
of our common stock on a net basis.
During the year, shareholders also
saw the price of our common stock
rise 21percent.
Because we believe culture
influences performance,
WellsFargo counts among its 2014
accomplishments some notable
recognition: “Most Respected
Bank” by Barron’s magazine, “Most
Admired” among the world’s largest
banks byFortune magazine, “Best
U.S. Bank” by TheBanker magazine,
and “Most Valuable Bank Brand”
by Brand Finance,® a global brand
valuation company. However, just as
we think about profits, the accolades
would ring hollow if we didn’t believe
they were the result of doing what’s
right for our customers.
Customers
Our passion for helping customers
motivates our team members. It
gratifies us when we hear how our
banking and financial services improve
lives and transform businesses. For
even as we increasingly serve tens of
millions of customers through digital
and mobile means, our business is
still about people helping people.
Some call this a “Main Street” focus.
We also call it helping individuals
and businesses in the “real economy.”
From checking accounts and
debit cards to savings products to
treasury management services, we
help customers manage their daily
financial lives. We help families
buy that first home or new car. We
provide funding to businesses, small
and large, to expand and hire. We
help our customers plan and save for
retirement. So convinced are we that
this is WellsFargo’s core purpose
that in2014 we began sharing stories
of how we serve customers and
communities through “WellsFargo
Stories,” a new online journal located
at wellsfargo.com/stories.
One story that especially touched
us involved Sam and Kerri Taylor of
Ocean Springs, Mississippi. Before
the recession, the family built a
dream home. But when illness caused
Kerri to cut back on her work, the
family’s income fell, and financial
challenges followed.
Fortunately, we were able to modify
the Taylors’ mortgage—one of more
than 1million mortgage modifications
we have completed since 2009—
tohelp them avoid foreclosure.
Sadly, there are times when families
simply can’t aord to remain in their
current home, but our mortgage
servicing team works extremely hard
to help our customers find solutions
to sustain homeownership. Over
the past six years, WellsFargo has
been able to work with families like
the Taylors to forgive more than
$8.4billion of mortgage principal.
“All I can say is WOW,” Sam
Taylor told us. “Angela [Ludwig,
a WellsFargo Home Mortgage
specialist] not only helped us get
approved for the modification and
keep our home, she displayed the
most professional and courteous
attitude I’ve ever seen.”
We also hear “wows” from our
business customers. In2014,
WellsFargo extended $18billion
in new loan commitments to small
businesses. Additionally, for the
12th consecutive year, we were the
nation’s largest small business lender
in dollars, based on Community
Reinvestment Act government
data (2002–2013; 2014 data will be
released later in 2015). Last year, we
also launched WellsFargo Works
forSmall Business,
SM a broad initiative
to deliver resources, guidance,
and services to small businesses,
including a goal to extend $100billion
in new loans by the end of 2018.
We’re proud to lend to entrepreneurs
like David Dorrough of Boise, Idaho.
Our relationship with David began
not long after he became frustrated
with the quality of commercially
available stud finders when installing
bookshelves at his home. David
put his electrical engineering skills
to work to create a more accurate
