Wholesale Banking. Dave Hoyt Senior Executive Vice President Head of Wholesale Banking. May 22, Wells Fargo & Company. All rights reserved.

Transcription

1 Wholesale Banking Dave Hoyt Senior Executive Vice President Head of Wholesale Banking May 22, Wells Fargo & Company. All rights reserved.

2 Agenda Business overview - Distribution - Segment highlights Financial performance - Business results Strategic opportunities - Cross-sell - Treasury Management & Innovation - Wells Fargo Securities (John Shrewsberry) - International (Richard Yorke) Wholesale Banking 1

3 Wholesale Banking Dave Hoyt Senior Executive Vice President Head of Wholesale Banking Wholesale Banking Wells Fargo Securities International Group Wholesale Banking 2

4 Business Overview Business Overview Financial Performance Strategic Opportunities Wholesale Banking 3

5 Wholesale Banking Wholesale Banking serves large corporations, middle-market businesses, governments, and institutions with annual revenues of $20 million and above More than 34,000 team members 731 Domestic and 62 international offices 1Q12 Average assets: $467.8 billion 1Q12 Average core deposits: $220.9 billion 1Q12 Average loans: $268.6 billion Revenue: 1Q12 $6.0 billion; FY 2011 $21.6 billion Net income: 1Q12 $1.9 billion; FY 2011 $7.0 billion Wholesale Banking 4

6 Coast-to-coast distribution 731 Offices More than 32,000 Wholesale Team Members in the U.S. Wholesale Banking 5

7 International distribution 62 Offices 1,800 Wholesale Team Members Working Outside the U.S. Seven cities include multiple sales offices; Cayman Islands branch not included in office count. Wholesale Banking 6

8 A diversity of businesses Commercial Banking Commercial Banking Government & Institutional Banking Corporate Banking Energy Group U.S. Corporate Banking Financial Institutions Group Power and Utilities Group Financial Sponsors Group Gaming Division Restaurant Finance Equity Funds Group Commercial Real Estate Institutional & Metro Markets Group Regional Private Markets Group REIT Finance Group Hospitality Finance Group Real Estate Merchant Banking Portfolio Management Group Commercial Real Estate Services Specialized Lending, Servicing, & Trust Asset-Backed Finance Multifamily Capital Commercial Mortgage Banking Equipment Finance First Union Rail Community Lending & Investment Real Estate Capital Markets Commercial Mortgage Servicing Corporate Trust Services Shareowner Services Asset Management Group Funds Management Group Wells Capital Management Affiliated Managers European Credit Management Galliard Golden Capital Nelson Capital Peregrine Insurance Group Commercial insurance brokerage and consulting Consumer risk and insurance services Rural community insurance services International Group Global Banking Global Financial Institutions Global Transaction Banking Foreign Exchange Global Payment Services Global Trade Services International Treasury Management Treasury Management & Internet Solutions Treasury Management Health Benefit Services Commercial Electronic Office portal CEO Mobile service Wells Fargo Capital Finance Corporate Finance Group Retail Finance & Commercial Services Industries Group Wells Fargo Securities Investment Banking & Capital Markets Industry, Financial Sponsor, and Middle Market Coverage Debt Capital Markets Equity Capital Markets Loan Syndications Advisory Eastdil Secured Municipal Products Fixed Income Sales & Trading Corporate Credit Sales & Trading Mortgage and Asset-Backed Sales & Trading Interest Rate Risk Management Commodities Equities Sales & Trading Investment Solutions Research & Economics Asset-Backed Finance & Securitization Principal Investments Wholesale Banking 7

9 Loan portfolio diversification ($ in billions, 1Q12 average balances) 1Q10 1Q12 Growth % 1Q10 1Q12 Growth % (excl. PCI (2) ) Total Wholesale Banking $269 13% 17% Commercial Real Estate Divisions $75 2% 11% Commercial Lending Divisions (1) $194 18% 19% Middle-Market Commercial $57 25% Wells Fargo Capital Finance $29 24% Asset-Backed Finance $24 29% Large Corporate $24-11% International Equipment Finance $16 $22 144% 7% Other Commercial $21-16% (1) Portfolios do not add to $194B due to rounding. (2) Purchased credit-impaired loans. Wholesale Banking 8

10 Commercial Banking Serves middle-market businesses with annual revenues of $20 million and above Vast majority of Commercial Banking customers are privately held businesses Specialty finance capabilities include: - Technology and venture banking - Beverage finance - Environmental services - Food and agribusiness - Heavy equipment dealers - Investor real estate Government & Institutional Banking, a division of Commercial Banking, serves local governments, non-profit healthcare organizations, non-profits, and educational institutions Key facts Increased lending in 2011 to government, nonprofit, nonprofit healthcare, and higher education clients More than 1,300 sales professionals Average team member tenure is 11 years 130+ Commercial and Government Banking offices nationwide Industry rankings #1 in lead relationship share of middle-market companies (1) #1 in number of lending relationships with middlemarket companies (1) #1 Senior manager of negotiated municipal notes (2) Growth drivers Superior local distribution with national coverage Robust product capabilities Experienced team with lengthy tenure (1) TNS 2011 Commercial Banking Momentum Monitor. Continental U.S. (2) Thomson Reuters Wholesale Banking 9

11 Commercial Real Estate Serves regional/national owners, operators, and developers, real estate funds, and REITs Delivers an integrated suite of services balance sheet lending, capital markets advisory and distribution, specialized lending and origination through close alignment of our businesses - Institutional and Metro Markets - Eastdil Secured - Regional Private Markets - Real Estate Capital Markets - Homebuilder Banking - Asset-Backed Finance - REIT Finance - Community Lending & Investment - Hospitality Finance - Multifamily Capital - Real Estate Merchant Banking - Commercial Mortgage Servicing - Portfolio Management Industry rankings Growth drivers #1 Total commercial real estate originations in the U.S. and in the following categories: (1) Loan purchases from deleveraging U.S. and Office buildings Hospitality Investment funds European banks Affordable housing Healthcare REITs Fannie Mae New Homebuilder Banking Retail Mortgage REITs FHA/Ginnie Mae Division and improvement Industrial in residential markets #1 Multifamily direct lender (1) #1 Commercial mortgage servicer (2) Diversified products and services driving cross-sell #1 Bookrunner of preferred stock REIT equity issuance by transaction number (3) #1 Most active brokerage of office and hotel commercial real estate sales (4) (1) MBA Commercial Real Estate/Multifamily Finance Firms Annual Origination Volumes, year ending 12/31/11. (2) MBA Commercial/ Multifamily Mortgage Servicer Rankings, year ending 12/31/11. (3) Thompson Financial, year ending 12/31/11. (4) Real Estate Alert Composite Ranking, year ending 12/31/11. Wholesale Banking 10

12 Corporate Banking Group A diverse set of general corporate and industry specialty relationship businesses that serve a broad range of large corporate, middle-market, investment grade, non-investment grade, public, and private businesses Business groups include: - U.S. Corporate Banking - Financial Institutions - Power and Utilities - Energy - Financial Sponsors - Gaming - Restaurant Finance Key facts Nearly 70% of Fortune 500 companies are customers of the group (1) 36 Offices in the U.S., 1 office in Canada (Calgary) Industry rankings #1 in commitment to long-term relationships (2) #1 Bookrunner of Restaurant syndicated loans (3) #2 Bookrunner of Energy syndicated loans (3) #2 Bookrunner of Utilities syndicated loans (3) #2 Bank-affiliated equipment finance company in U.S. by both net assets and new business volume (4) #4 Bookrunner of U.S. Financial Services syndicated loans (3) Growth drivers New client acquisitions Cross-sell existing and new customers Opportunistic portfolio and add-on acquisitions Energy Group expansion in Canada (1) Wells Fargo 2011 Fortune 500 penetration analysis, Feb (2) Greenwich Associates, (3) Thompson Reuters LPC, 1Q12. (4) 2011 Monitor 100 industry ranking. Wholesale Banking 11

13 Wells Fargo Capital Finance Provides traditional asset-based lending, specialized junior and senior secured financing, factoring and financing for domestic and international trade Clients are in a range of industries, including consumer and industrial manufacturers, wholesalers and distributors, service companies, software and technology providers, specialty finance companies, retailers, and trucking and transportation companies Serves companies throughout the U.S. and Canada, and provides asset-based financing to companies in the U.K. through Burdale Financial Limited, a Wells Fargo Company (acquired February 2012) We help customers with: Working capital Mergers & acquisitions Growth Recapitalization Bankruptcy Shareholder buyouts Industry-specific lending Domestic and international trade Industry rankings #1 Most active asset-based lender in 2011 and 1Q12, committing more than $18 billion to 233 syndicated transactions (1) #2 Most active left lead arranger in 1Q12 with 19 syndicated asset-based transactions totaling over $4.7 billion of volume (2) Growth drivers Account retention and competitive positioning Increase syndicated deals Portfolio acquisitions Maximize cross-sell opportunities (1) Represents broadly syndicated transactions of $100 million or more for deals closed in 2011 and 1Q12. Sources: Wells Fargo Capital Finance and Thomson Reuters. (2) Represents deals of $100 million and above. Source: Thomson Reuters Asset-Based Left Lead league table for 1Q12. Wholesale Banking 12

14 Asset Management Group (AMG) Provides investment management services for $444B in separate accounts and mutual fund products Organized into three primary areas - Wells Fargo Advantage Funds: $210B AUM - Wells Capital Management: $123B AUM in Separate Accounts; $187B AUM sub-advised for Wells Fargo Advantage Funds - Affiliated Managers: $103B AUM (ECM $10B; Galliard $80B; Golden $7B; Peregrine, Nelson, Overland $6B) Broad range of highquality products 80% of WellsCap composites beat 3-year benchmark 51% of funds rated 5- and 4-star vs. industry average of 32.5% 37 investment teams 23 Equity 10 Fixed income 1 Money market 3 Alternative Industry rankings #18 U.S. asset manager (AMG and WBR) (1) #11 Fund complex group (2) #2 Bank-sponsored mutual fund company (2) #2 Stable value 401k and retirement plan manager (3) #8 Manager of mutual funds most used by defined contribution plans (3) Growth drivers Target key growth segments external brokers and retirement plans, select institutional account segments, and international customers with active management products Leverage Wells Fargo international opportunities New product launches Modest acquisitions Data as of 3/31/12 unless otherwise noted. (1) Institutional Investor 300 rankings published July 2011 based on 12/31/10 assets. Wealth, Brokerage & Retirement accounted for 20% ($112B) of overall AUM. (2) Strategic Insights. (3) Pension & Investments 2011 survey. Wholesale Banking 13

15 Asset-Backed Finance & Securitization Provides warehouse, permanent financing, and capital markets services to originators and aggregators of assets Structures loans to be held by Wells Fargo, syndicated, or sold as securities to institutional investors - Provides direct structured lending, often in partnership with other business lines - Underwrites asset-backed securities on behalf of finance companies - Assists with securitization and structured financing activities for the following asset classes: Middle-market loans Motorcycle loans, marine Broadly syndicated loans Student loans Small business loans Consumer ABS bonds CLO bonds Non-agency & agency whole loans Auto loans & leases Non-performing whole loans Credit cards Servicing advances Warehouse lending Large ticket equipment Small ticket equipment Large corporate leasing Commercial real estate CMBS bonds Industry rankings #1 Bookrunner of U.S. Subprime Auto in 1Q12 (1) #3 Global CMBS in 2011 (2) #8 Bookrunner of worldwide CLOs in 2011 (3) #9 Manager of U.S. ABS in 2011 (3) #10 Global structured origination in 2011 (3) Growth drivers New client acquisitions Opportunistic portfolio and add-on acquisitions Cross sell existing and new customers (1) IFR Markets, April 20, (2) Commercial Mortgage Alert, January 6, (3) Asset Backed Alert, January 6, Wholesale Banking 14

16 Corporate Trust and Shareowner Services Corporate Trust Services - Provides trustee, agency, and fiduciary services for bondholders, investors, and lenders; also serves as a third-party corporate escrow agent among two or more parties - Services typically used on asset- and mortgage-backed securitizations, municipal bonds, and warehouse/conduit programs created by corporations and government entities Wells Fargo Shareowner Services - Offers stock transfer and record-keeping services, dividend disbursement and reinvestment plan services, stock purchase plans, proxy tabulation, and shareholder meeting services LaCrosse Global Fund Services (acquired 2011) - Serves the hedge fund market with traditional fund administration, operational support, derivatives processing, bank debt processing, and cash/collateral management Industry rankings (as of 12/31/11) #1 Certificate administrator for CMBS (1) #1 Trustee for GNMA Multiclass REMIC Program (2) #2 Trustee for high yield debt, trustee for convertible debt (3) #2 Trustee for single-family housing debt, trustee for Delaware statutory trust services (4) #3 Trustee for ABS and MBS (5) #3 Trustee for municipal debt (3) #3 Trustee for multi-family housing debt (4) Growth drivers Balance growth from corporate debt and escrows Fee growth from 2011 acquisition of LaCrosse hedge fund services Cross-sell of diversified products and services (1) Commercial Mortgage Alert. (2) Government National Mortgage Association. (3) Securities Data Corporation. (4) Rankings utilizing raw data extract include: Multi and Single Family Housing debt. Source: Securities Data Corporation; Delaware Statutory Trust Services. Source: DE Division of Corporations. (5) Asset Backed Alert. Wholesale Banking 15

17 Insurance Group Wells Fargo Insurance provides commercial, personal, and crop insurance through three lines of business: - Wells Fargo Insurance Services USA, Inc. provides a wide array of commercial insurance, including property & casualty, employee benefits, and professional risk through brokers across the country - Wells Fargo Insurance, Inc. provides auto, homeowners, life, umbrella liability, and crop insurance, as well as identity theft protection and payment protection products through the mail, over the phone, and online at wellsfargo.com - Rural Community Insurance Services (RCIS) provides multi-peril crop insurance programs authorized by the Risk Management Agency (RMA) of the U.S. Department of Agriculture, as well as crop hail and other private crop programs, and property & casualty products Industry rankings #4 Insurance brokerage in the U.S. (1) #5 Insurance brokerage in the world (1) #1 Bank-owned insurance brokerage (1) #1 U.S. crop insurer with 22% market share (2) Recipient of the 2011 Greenwich Broker Excellence Award for customer satisfaction (3) Growth drivers Create closer alignment with Wells Fargo businesses to increase cross sell Use strategic partnerships with insurance carriers to expand innovative product offerings Improve efficiency (1) Insurance (2011), based on 2010 insurance brokerage revenues of $1.65 billion. (2) National Crop Insurance Services (NCIS) based on 2011 gross written premium. (3) Greenwich Associates 2011 Large Corporate Insurance study. Wholesale Banking 16

18 Financial Performance Business Overview Financial Performance Strategic Opportunities Wholesale Banking 17

19 Wholesale revenues and earnings contribution Share of Wells Fargo revenues and earnings 2011 Revenues Wholesale revenues by category 27% 54% Net interest income 2011 Earnings Trust & investment fees 13% 10% 8% 3% Other 2% Trading gains 2% Operating leases 2% Equity investment gains 6% Service charges External fees & commissions Insurance 44% Wholesale Banking 18

20 Net income growth ($ in billions) $7.0 $5.9 $3.9 $0.8 $0.8 $1.0 $1.1 $1.1 $1.4 $1.7 $1.7 $2.2 $2.3 $1.4 $ Q12 As reported in most recent annual reports and earnings release legacy Wells Fargo only. Wachovia included beginning Wholesale Banking 19

21 Balanced spread and fee revenue mix ($ in billions) $22.4 $21.6 $ % 49% 46% $7.8 $8.5 $8.2 $2.4 $2.6 43% 46% 57% 54% $3.7 48% 52% $4.3 $4.6 $4.9 49% 51% 55% 51% 49% 45% $5.6 61% 39% $6.1 61% 39% 59% 41% 58% 42% 45% 55% 50% 51% 54% $6.0 47% 53% Q12 Net Interest Income Non-Interest Income As reported in most recent annual reports and earnings release legacy Wells Fargo only. Wachovia included beginning Wholesale Banking 20

22 Deposits and loans Core deposits ($ in billions, average balances) $209 $223 $221 $140 $138 $148 $163 $162 $162 $171 $185 $185 $191 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Loans ($ in billions, average balances) $283 $263 $252 $243 $237 $228 $227 $230 $235 $243 $253 $265 $269 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Wholesale Banking 21

23 Strategic Opportunities Business Overview Financial Performance Strategic Opportunities Wholesale Banking 22

24 Competitive position vs. large competitors Strong distribution Local consistent presence Consistent approach to the business Relationship focus Products focused on the middle market Our reputation for doing the right thing for our customers vs. regional competitors Consistent local presence Consistent approach to the business Relationship focus Balance sheet and financial capacity Product depth and focus on the middle market Product sophistication Our reputation for doing the right thing for our customers Wholesale Banking 23

25 Cross-sell has increased over time Number of Products per Wholesale Relationship Commercial West Commercial East Wholesale Banking Integration of Wachovia and Wells Fargo systems and portfolios Note: Legacy Wells Fargo only Data as of Q4 of each year. Single product types are counted only once per relationship. Wholesale Banking 24

26 Product usage ramps up over the relationship Vintage Analysis for Products per Relationship Corporate and Commercial Banking Avg. # of products Years with Wells Fargo Note: Analysis based on relationship count as of February 2012, and includes existing relationships that began in June 2008 or later. Wholesale Banking 25

27 Deepening relationships through cross-sell Longer Tenure = More Cross-sell Avg. # of products Tenure (years) More Cross-sell = More Revenue Avg. annual revenue ($000) $6,000 $5,255 $4,000 $2,465 $2,000 $- $1,190 $170 $240 $ # of Products Data includes Corporate and Commercial Banking relationships as of February Wholesale Banking 26

28 Treasury Management Deliver core cash management services to customers through a single, nationwide platform #1 Penetration (22.8%) of treasury management services among middlemarket companies (annual sales of $20 million to $500 million) (1) #2 Penetration (48.7%) of treasury management services among large corporate companies (annual sales above $500 million) (1) Our products, services, and technology help customers make and receive payments more efficiently by embedding connections to Wells Fargo into existing customer workflows Annuity fee business with high risk-adjusted returns (and future upside from rates) Award-winning capabilities attract and retain low-cost deposits from customers Powerful economies of scale Long-term investments in technology, product development, and sales team expansion create significant barriers to entry for competitors Innovation is a competitive advantage (1) Phoenix-Hecht, 2012 Treasury Management Monitor. Wholesale Banking 27

29 Continuing investment in innovation 2000: Launched the single sign-on Commercial Electronic Office portal - CEO portal has 96,000 active companies and more than 570,000 active users (1) - More than 80% of Commercial and Corporate Banking relationships with treasury management services use the CEO portal (1) - Nearly $11.2 trillion flows through the CEO portal annually 2001: Ethnography studies in-depth analysis of customers financial workflows to help them identify opportunities to streamline their processes 2005: Desktop Deposit service remote deposit through the CEO portal 2007: CEO Mobile service first bank to offer mobile banking to corporate customers - $7.3 billion flows through mobile channel annually 2009: CEO Workstation combining services into a sub-portal 2011: CEO Mobile Deposit service designed specifically for businesses (1) As of February Wholesale Banking 28

30 People as a competitive advantage Wholesale business heads average 23 years with Wells Fargo Wholesale managers average 14 years with Wells Fargo Average tenure for all Wholesale team members is 10 years Total Wholesale team members grew from more than 32,000 at the end of 2009 to more than 34,000 by the end of 2011 Data as of February Wholesale Banking 29

31 Long-term goals Focus on building relationships Acquire new customers Deepen relationships through cross-sell Retain customers by optimizing customer experience Practice our core values Do the right thing for customers Understand, price, and manage risk Anticipate serving relationships for the long term, through all business cycles Build on our post-merger platform Broader distribution Expanded capabilities Wholesale Banking 30

32 Wells Fargo Securities John Shrewsberry Executive Vice President Head of Wells Fargo Securities Wholesale Banking Wells Fargo Securities International Group Wells Fargo Securities 31

33 Customer centric business model Relationship Focused Strong relationships and industry knowledge combine with excellent capital markets and advisory capabilities to serve our geographic, corporate and institutional customer footprint Leveraging the Wholesale organization Provide debt and equity capital raising, advisory, hedging and market making capability for thousands of Wholesale customers Capabilities enhanced with Wachovia merger Expanded product offerings and expertise allow for deepened relationships and the ability to help clients with critical financial and strategic activities where Wholesale could not have previously assisted Wells Fargo Securities 32

34 Meeting the needs of Wholesale customers Customer Needs Capital Raising Risk Management Advisory Customers Corporate, Middle Market, Commercial Real Estate, ABL Borrowers, Financial Sponsors, Global Banks, Municipalities, Business Banking, Institutional WFS Products & Services Equity Capital Markets High Grade Debt High Yield Debt Loan Syndications Research Interest Rate Risk Mgmt. Commodities Research M&A Advisory Real Estate Advisory Research WFS Customer Coverage Asset Backed Finance, Consumer, Commercial Real Estate, Energy & Power, Financial Institutions, Financial Sponsors, Gaming, Healthcare, Industrials, Media, Middle Market, Public Finance, Technology, Telecom Support of Institutional Customers Distribution and Market Making Research Wells Fargo Securities 33

35 Focusing on the customer relationship 2011 Investment Banking relationships had an average 15 years tenure with Wholesale Banking 88% of 2011 Investment Banking relationships used other Wholesale Banking products. 75% of the total revenue generated by these relationships came from non-investment Banking products 43% of Wholesale Corporate and Commercial relationships (1) used WFS Investment Banking products (2) in the last 12 months (1) Corporate and Commercial Banking relationships with >$10mm in commitments. (2) Debt, Equity, Advisory, Syndications, Public Finance, Derivatives. Does not include FX. Wells Fargo Securities 34

36 Delivering for Wholesale relationships in its announced sale to $5 Billion Acquisition of has acquired Merger of Equals $600 Million Exclusive Sellside Advisor $3.7 Billion Senior Credit Facility Financial Advisor to Buyer Left Lead Arranger Undisclosed Exclusive Buyside Advisor $1.6 Billion Financial Advisor to Snyder s of Hanover, Inc. and Lance, Inc. 5+ years Wholesale Commercial Banking relationship 15+ years Wholesale Corporate Banking relationship 60+ years Wholesale Commercial Banking relationship 30+ years Wholesale Corporate Banking relationship Exclusive Sellside Advisor Left Lead Arranger & Left Bookrunning Manager on $540MM committed financing to fund acquisition Exclusive Buyside Advisor on largest M&A transaction in Paper/Packaging sector since 2008 Left Lead Arranger on $3.7B Senior Credit Facilities Exclusive Buyside Advisor Joint Lead Arranger on Committed Financing Financial Advisor to Snyder s of Hanover, Inc. and Lance, Inc. Wells Fargo Securities 35

37 Diversified income generation WFS 2011 Revenue By Product Public Finance 8% Real Estate M&A Advisory Advisory 9% 3% Corporate Debt Activities 34% WFS revenues and earnings are: - Balanced by product area and industry - Disproportionately earned through fee generation vs. trading revenue Rates / Commodities 25% Sales & Trading 35% Equity Activities 15% Asset Backed Activities 6% Investment Banking 65% WFS 2011 Origination Revenue (1) By Industry/Sector Technology, Media & Telecom 8% Mortgage & Asset Backed 3% Other 9% Real Estate 23% Public Finance 9% Consumer, Healthcare & Gaming 14% Industrials 10% Energy & Power 15% Financial Institutions 9% (1) Includes origination revenue for Corporate Debt (excluding Net Interest Income from loan book held in Corporate Banking), Asset-Backed, Equity, Rates/Commodities, Public Finance, M&A Advisory and Real Estate Advisory products. Wells Fargo Securities 36

38 % Share Growth in scale and leadership Continued growth in Investment Banking market share (1) Only firm to gain market share in both 2010 and % 6.0% 5.6% 5.2% 4.8% 4.4% 4.0% 3.6% 4.1% Rank #9 Up 24% 4.2% Rank #9 5.1% Rank #8 FY 2009 FY 2010 FY 2011 Fee Based Market Share Change 2009 vs vs CS 2.2% JPM 1.0% DB 1.2% WFS 0.9% JEF 1.0% MS 0.8% BC 0.7% RBS 0.3% UBS 0.2% C 0.1% LAZ 0.2% BAC 0.1% WFS 0.1% BC -0.1% BAC -0.3% LAZ -0.4% JPM -1.7% UBS -0.4% MS -2.5% CS -0.5% GS -2.6% DB -0.9% C -3.3% GS -1.5% Served our customers extensive capital markets needs with over 1,500 executions (2) in 2011 Ranked #3 in total executions for domestic investment banking (1) High Yield (4) 85 Deals $10B Volume High Grade (3) 145 Deals $29B Volume Leveraged Loan Syndications (3) 373 Deals $55B Volume Interest Rate Derivatives (2) 5,750 Trades $128B Notional Investment Grade Loan Syndications (3) 404 Deals $95B Volume 2011 Activity (6) Mortgage & Asset Backed (2) 76 Deals $51B Volume (1) Dealogic, 2011, fee-based, U.S. Corporate Only. (2) Internal WFS reporting. (3) Thomson Reuters, domestic, (4) Bloomberg, domestic, (5) SDC, domestic, (6) Scale not representative of data. Equities (5) 97 Deals $8B Volume Advisory (3) 29 Deals $28B Volume Public Finance (3) 170 Deals $13B Volume Wells Fargo Securities 37

39 Capitalizing on Wells Fargo s strengths Wells Fargo Areas of Strength Product Expertise Market Leadership Deep corporate and middle market relationships created through the combination of Wells Fargo and Wachovia Broad lending platform and strong balance sheet in large corporate, middle market, ABL, government and commercial real estate Access to extensive retail brokerage distribution platform (Wells Fargo Advisors) #1 mortgage originator (Wells Fargo Home Mortgage) Leading and growing market positions across key segments of the economy Commercial Real Estate, Energy & Power Equity Capital Markets Loan Syndications (4) High Grade & Non-Investment Grade Bonds Municipal Bonds (4) M&A Advisory Asset Securitization #1 MLPs and BDCs (1) #2 Yield-oriented securities (1) #2 Closed-end funds (2) #2 Ranked Equity Research (3) #2 Middle Market #2 Real Estate/#3 REITs #2 Asset Based Lending #2 Oil & Gas/#3 Utilities #2 Preferreds (5) #5 Ranked Fixed Income Research (6) #1 Negotiated Notes #2 Competitive Notes Largest YoY revenue growth of WFS Investment Banking products (7) Top 10 Global Structured Origination (8) #3 Global CMBS (9) (1) Dealogic, domestic, (2) CEFA, domestic, (3) StarMine, stock picking among top 25 brokers, (4) Thomson Reuters, domestic, (5) Bloomberg, domestic, (6) Institutional Investor All-America Survey, (7) Internal WFS. (8) Asset Backed Alert, January 6, (9) Commercial Mortgage Alert, January 6, Wells Fargo Securities 38

40 Simplified business model Relationship Focused We prefer to provide investment banking services for clients with whom we have a broader relationship Trading Focused on Support of Issuing Clients Sales and Trading platform focused on amount of trading necessary to support issuing clients Primarily Domestic Focused International platform primarily supports the distribution of U.S. products, reducing operational complexity Wells Fargo is a significant provider of credit to middle market, corporate, government, institutional banking, commercial real estate and home mortgage customers Each of these areas involves customers and activities that require capital markets capabilities Broad distribution capabilities focused on providing market making and new issue support for customer activities Activities aligned from issuer origination through investors and from product and industry expertise 1,300 industry and product bankers aligned with sales, trading and research for distribution and market making Focus on facilitating our U.S. customers needs internationally Offices in 40 cities in the U.S., Europe and Asia Wells Fargo Securities 39

41 Core competency of managing risk through cycles Strong Risk Management Competency Simplified product set - we trade what is necessary to serve our clients. We do not have significant pre-crisis issues and positions Disciplined governance - robust oversight functions performed by internal WFS teams along with independent teams within Wholesale and at corporate level - Market risk, credit risk, operational risk, finance, accounting, compliance, legal, technology & operations, transaction & oversight committees Segregated credit culture - decision to extend credit to our customers primarily takes place in major lending groups outside of WFS, while fee-based businesses are housed within WFS $350 $300 $250 $200 $150 $100 $50 $0 $450 $400 $350 $300 $250 $200 $150 $100 $50 $- Average Daily VaR ($ in millions) Peer Comparison (1) C JPM GS BAC MS WFC Net Trading Assets ($ in billions) Peer Comparison (2) WFC is <25% of our peer average WFC is <25% of our peer average C JPM GS BAC MS WFC Peer Avg. (1) Individual company annual reports. Figures shown at confidence levels reported by each firm WFC includes both Wells Fargo and Wachovia VaR. (2) Y-9C Schedule HC-D as of 12/31/2011. Includes derivative receivables. Wells Fargo Securities 40

42 Opportunity for growth Significant opportunity to continue to deepen relationships by delivering Investment Banking & Capital Markets solutions to our Wholesale customer base Opportunity exists to offer more execution, clearing, custodial and transactionoriented services to our customers - Pending acquisition of Merlin Securities, LLC is an example of a transaction involving a modest, low risk business designed to expand our product offering to current and future customers Growth Drivers Strengthen awareness of Wells Fargo Securities Investment Banking expertise and experience across the Wholesale customer base Continue to uptier our strategic position and value-added idea flow with customers Drive leadership roles across Loan, Capital Markets, and Advisory executions for customers, generating higher economic returns for Wells Fargo Continue to balance activity by industry and product Wells Fargo Securities 41

43 International Group Richard Yorke Executive Vice President Head of International Group Wholesale Banking Wells Fargo Securities International Group International Group 42

44 Overview of International Group Wells Fargo s International Group leverages strong relationships and core product competencies in solving our customers global financial services needs and delivering exceptional value to commercial/corporate and financial institution customers Businesses with Global Needs Global Financial Institutions Wells Fargo International Transaction Banking Products International Group 43

45 Extensive global reach and foundation for growth Enterprise presence in 37 countries (incl. U.S.) Vancouver Calgary Toronto Mexico City Guayaquil Montreal United States Over 700 Wholesale offices New Providence Santo Domingo Cayman Islands Bogotá Dublin St. Helier Paris Madrid London Frankfurt Moscow Milan Seoul Istanbul Beijing Tokyo New Delhi Shanghai Cairo Dhaka Taipei Dubai Mumbai Hong Kong Hanoi Chennai Ho Chi Minh City Bangkok Manila Kuala Lumpur Singapore Jakarta Sáo Paulo Santiago Buenos Aires Johannesburg Sydney Representative offices International branches Sales offices Wells Fargo Bank International International Group 44

46 Focused on deep relationships Customer Focus Financial Institutions (Global Financial Institutions) U.S. and international banks Multilateral organizations (1), central banks and non-bank financial institutions U.S. Customers International Needs (Global Banking) U.S. middle market and corporate clients with presence internationally Serve international needs, in the U.S. and overseas Foreign Multinationals in the U.S. (Global Banking) Serve the U.S. needs of foreign multinationals Product Global Transaction Banking FX, Int l Treasury Management, Global Payment Services, Global Trade Services Serve the enterprise: Wholesale/Community Banking/Wealth Management and Brokerage customers (1) Organizations formed between three or more nations to address issues related to all countries in the organization. International Group 45

47 Global Financial Institutions An industry-leading business GFI manages relationships with financial institutions, multilateral organizations, and sovereign wealth funds Serves 3,200+ financial institutions (1) in 130 countries by offering payments, trade financing, credit solutions, deposit taking, and other products (2) from 35 cities (international branches and rep offices) around the world GFI Presence Manages approximately $21 billion (3) in loan outstanding balances; processes over 80,000 wires a day for ~$38 trillion per annum - Robust risk discipline across the globe with long-standing in-market expertise, a predominantly short-term portfolio and a strong track record of low loan losses Market leader with a consistent customer-focused relationship management model (1) Includes U.S. financial institution customer base. (2) Including Asset Management, Capital Finance, Wells Fargo Securities and Corporate Trust. (3) Average 1Q12 balances. International Group 46

48 Global Banking Clear mission to follow our commercial and corporate customers Position Wells Fargo as The Global Choice for our existing middlemarket and corporate customers by building out a core set of global credit, FX, trade and treasury management capabilities Support the U.S. needs of foreign multinational corporations Expand Wells Fargo s physical presence, products and services to select target countries around the world - Existing product capabilities present in the U.K., Canada, China, Germany, Ireland/European Economic Area and Hong Kong SAR - International offices work closely with 14 U.S. Global Banking offices - Future expansion based on customer needs Provide consistent global customer experience - Customer at center of our strategy - Leverage core global platform Existing Global Banking Presence International Group 47

49 Global Transaction Banking Localized support for global opportunities Offering financial institutions and corporations the tools and support necessary to serve their international needs Foreign Exchange and International Treasury Management - Largest U.S.-based FX sales team of any bank (1) (14 offices in U.S. and trading desks in London and Hong Kong) - Provider of ACH to 40 countries and multi-currency accounts in 32 currencies Global Payment Services - Provides integrated suite of global payment products, including USD and multi-currency payment, collection, and depository services - Partners closely with GFI for both domestic and international financial institutions Global Trade Services - Provides a comprehensive range of trade finance products and back-office processing services for financial institutions and corporations - Comprehensive global trade processing network with one of the world s largest trade operations in Hong Kong - Advises 5% of all L/Cs in favor of Chinese beneficiaries (2) (1) Based on company estimates and available external sources. (2) Based on SWIFT 1Q12 market share report. International Group 48

50 Established leading market position Greenwich Associates Reuters 2011 Greenwich Associates Excellence Award for providing international services to U.S. middle market companies #1 Most accurate overall FX forecaster globally from Reuters in 2011 Export-Import Bank of the U.S Lender of the Year award from the Export-Import Bank of the United States as the top lender under its working capital guarantee program FImetrix #1 Globally in institutional satisfaction from FImetrix in 2011 #1 Market share and customer satisfaction in Asia/Pacific and #2 in Western Europe for commercial payments from FImetrix in 2011 Trade Finance Asian Banker Best Trade Bank in the U.S. from Trade Finance magazine in 2011 Best Trade Finance Bank in Asia Pacific from Asian Banker magazine in 2012 International Group 49

51 Diversified revenue streams 2011 International Revenue Total International Group (IG) Revenue 73% 27% Other Wells Fargo International Related Revenue (1) IG Revenues by Sub-Segment Global Financial Institutions 45% IG Revenues by Geography U.S. (2) 21% Europe, Middle East & Africa IG Revenues by Source Net Interest Income 23% 13% Global Banking 55% 14% Asia FX 42% (1) International revenue associated with Asset Management, Capital Finance, Wells Fargo Securities, Corporate Trust, Wealth Management and Brokerage. (2) Includes International Group businesses such as FX and GFI U.S. 9% Latin America 1% Canada 77% Non-Interest Income International Group 50

52 Primary Growth Drivers International opportunities for growth Meeting the increasing global needs of our customers Deepen Market-Leading GFI Business Deepen existing relationships by expanding cross-sell with a broader set of products (e.g. FX, Wells Fargo Securities, Asset Management) Develop/broaden relationships with select non-bank financial institutions Global Banking Build Out Build capabilities to meet international needs of U.S. - based commercial and corporate customers, and the U.S. needs of foreign corporations Focus on priority international banking needs - credit, treasury management, trade, and FX Build/Upgrade Infrastructure to Serve Wells Fargo Clients Focus on leveraging current capabilities Upgrade infrastructure (systems, regulatory permissions etc.) to broaden our ability to serve our customers Provide non-u.s. regional platform and governance to rest of enterprise International Group 51

53 International group Summary Focus on serving customers increasing global needs Stay true to Wells Fargo philosophy Partner with other Wholesale businesses to focus on U.S. companies doing business internationally and the U.S.-based business of foreign owned companies Enable globally integrated and consistent customer experience Do the right thing for customers serve relationships for the long term, through business cycles, both domestically and internationally Deepen relationships through cross-sell bring the best and the breadth of Wells Fargo Manage risk short-term GFI credit portfolio, strong risk management track record Build on our broader post-merger platform Broader distribution leverage GFI footprint Expanded capabilities multi-currency payments, cross-sell of additional capabilities such as Wells Fargo Securities, Asset Management International Group 52

54 Wholesale Banking s long-term goals Focus on building relationships Acquire new customers Deepen relationships through cross-sell Retain customers by optimizing customer experience Practice our core values Do the right thing for customers Understand, price, and manage risk Anticipate serving relationships for the long term, through all business cycles Build on our post-merger platform Broader distribution Expanded capabilities Wholesale Banking 53

55 Biographies Wholesale Banking 54

56 Dave Hoyt Senior Executive Vice President, Wholesale Banking Dave Hoyt oversees Asset Management, Capital Markets, Commercial Banking, Commercial Real Estate, Corporate Banking, Insurance, International, Investment Banking, Specialized Lending, Servicing and Trust, and Wells Fargo Capital Finance. Based in San Francisco, the 30-year company veteran has managed Wholesale Banking since He formerly managed the Capital Markets Group, the workout-related groups for Wholesale Banking, and was involved in various functions relating to the overall credit quality of the bank s portfolio. He also was senior credit officer for the Real Estate Group, manager of the bank s credit training function, and manager of the East Bay office of the Real Estate Group. He is a board member of the Shanghai Commercial Bank Ltd., the California Academy of Sciences, and San Francisco Symphony. Dave graduated from the University of California, Berkeley, where he earned his bachelor s degree in business administration. Wholesale Banking 55

57 John Shrewsberry Executive Vice President, Wells Fargo Securities John Shrewsberry is group head of Wells Fargo Securities, based in San Francisco, Calif. He is responsible for investment banking, capital markets, institutional fixed income, equity, and derivatives sales and trading, investment research, and a credit-intensive principal investment portfolio. Wells Fargo Securities has offices in the U.S., Europe and Asia. He is also a member of the Wells Fargo Management Committee. With more than 20 years of experience in banking and investing, John assumed his current role in From 2001 through 2005, he was the group head of Wells Fargo Commercial Capital, the successor to a commercial finance company he co-founded that became part of Wells Fargo in Previously, John worked at Goldman Sachs and Credit Suisse First Boston in the principal finance areas. He earned his B.A. in economics from Claremont McKenna College, in Claremont, Calif., and an M.B.A from the Yale School of Management. He currently serves on the boards for the Committee on Capital Markets Regulation and the American Bankers Association Securities Association, as well as on the boards of The Robert Day School of Economics and Finance and the San Francisco Chapter of the Juvenile Diabetes Research Foundation. Wholesale Banking 56

58 Richard Yorke Executive Vice President, International Group Richard Yorke is the group head of the Wells Fargo International Group, which provides a wide range of international services to small businesses, corporations, financial institutions, multilateral organizations, and individuals. The group serves the needs of its customers through offices across the U.S. and more than 30 overseas locations, including branches in Hong Kong, London, Seoul, Shanghai, Singapore, Taipei, Tokyo, and the Cayman Islands. He is also a member of the Wells Fargo Management Committee and is based in San Francisco. Prior to joining Wells Fargo, he worked for HSBC for 20 years in various international roles and spent time in Dubai, Hong Kong, Indonesia, Jersey in the Channel Islands, and the U.S. Most recently, he served as the president and CEO of HSBC Bank (China) Company Limited. He earned a bachelor s degree with honors in German and economics from the University of St. Andrews in Scotland. Active in promoting the foreign-banking industry in China, he was the first director of the China Banking Association s Foreign Bank Working Committee in He was named an Honorary Citizen of Shanghai in 2009 for his contributions to developing Shanghai into a financial services center, training local people in the banking industry, and supporting education and social welfare development in the city. He received the Magnolia Award from the Shanghai Municipal Government and served as a member of the board of trustees of Shanghai s Tongji University. He currently serves on the boards of Shanghai Commercial Bank, Wells Fargo Bank International, and Wells Fargo International Banking Corporation. Wholesale Banking 57