US Commercial Banking industry analysis

COMPANY PROFILE

Wells Fargo & Company

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Wells Fargo & Company TABLE OF CONTENTS

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TABLE OF CONTENTS

Company Overview ........................................................................................................3 Key Facts.........................................................................................................................3 Business Description .....................................................................................................4 History .............................................................................................................................5 Key Employees .............................................................................................................18 Key Employee Biographies .........................................................................................21 Major Products & Services ..........................................................................................25 SWOT Analysis .............................................................................................................27 Top Competitors ...........................................................................................................30 Company View ..............................................................................................................31 Locations And Subsidiaries ........................................................................................36

Wells Fargo & Company Company Overview

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Company Overview

COMPANY OVERVIEW

Wells Fargo & Company (Wells Fargo) is a provider of financial services to individuals, businesses and institutions. The company The company offers corporate, commercial and retail banking services, consumer finance, wholesale banking, equipment leasing, mortgage banking, securities brokerage, agricultural finance and investment banking services. It also provides commercial finance, trust services, computer and data processing services, venture capital investment, mortgage-backed securities servicing, and investment advisory services. Wells Fargo serves its customers through a network of banking locations, offices and other distribution channels such as the internet. It has business presence across North America, Asia, Europe and UAE. The company is headquartered in San Francisco, California, the US.

The bank reported interest income of (US Dollars) US$64,647 million for the fiscal year ended December 2018 (FY2018), an increase of 9.7% over FY2017. The net interest income after loan loss provision of the bank was US$48,251 million in FY2018, compared to net interest income after loan loss provision of US$47,029 million in FY2017. In FY2018, the bank recorded a net margin of 22.2%, compared to a net margin of 22.7% in FY2017. The bank reported interest income of US$16,986 million for the second quarter ended June 2019, a decrease of 0.1% over the previous quarter.

Key Facts

KEY FACTS

Head Office Wells Fargo & Company 420 Montgomery Street San Francisco California San Francisco California USA

Phone 1 866 8785865 Fax Web Address www.wellsfargo.com Revenue / turnover (USD Mn) 101,060.0 Financial Year End December Employees 258,700 New York Stock Exchange Ticker WFC

Wells Fargo & Company Business Description

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Business Description

BUSINESS DESCRIPTION

Wells Fargo & Company (Wells Fargo or ‘the company) is a financial services company that provides corporate, commercial and retail banking services. The company also offers other financial services through its subsidiaries, which include consumer finance, wholesale banking, equipment leasing, mortgage banking, securities brokerage, agricultural finance, investment banking, commercial finance, trust services, computer and data processing services, venture capital investment, mortgage-backed securities servicing, and investment advisory services. Wells Fargo offers its services businesses, individuals, and institutions through a network of banking locations, offices and other distribution channels such as the internet in the District of Columbia, all 50 states and in other countries. It operates through 7,800 locations, more than13,000 automated teller machines (ATMs), the internet, and mobile banking, and has offices in 37 countries.

Wells Fargo classifies its business into three operating segments: Community Banking; Wholesale Banking; and Wealth and Investment Management (WIM).

The Community Banking segment offers various financial products and services to consumers and small businesses. These products and services include credit and debit cards, student, automobile, home equity, mortgage and small business lending. It serves customers through various channels, such as ATMs, traditional and in-supermarket and other small format branches, digital (social, mobile and online), and contact centers (email, phone and correspondence). As of December 31, 2018, the company served 11,000 auto dealers and three million auto loan customers through Wells Fargo Auto. In FY2018, the Community Banking reported revenue of US$46,913 million, which accounted for 51% of the company’s total revenue.

The Wholesale Banking segment provides financial solutions to businesses across the US and to financial institutions globally. This segment provides a range of capital markets, commercial, cash management, corporate and real estate banking products and services. These include letters of credit, traditional commercial loans and lines of credit, equipment leasing, asset-based lending, trade financing, international trade facilities, foreign exchange services, collection services, investment management, treasury management, commodity and equity risk management, institutional fixed-income sales, interest rate, and online/electronic products such as corporate trust fiduciary and agency services, and investment banking services. In FY2018, Wholesale Banking reported revenue of US$28,706 million, which accounted for 31.2% of the company’s total revenue.

The Wealth and Investment Management (WIM) segment provides personalized wealth management, investment and retirement products and services to clients across the US based businesses, such as The Private Bank, Wells Fargo Advisors, Wells Fargo Institutional Retirement and Trust, Abbot Downing, and Wells Fargo Asset Management. The company offers private banking, financial planning, fiduciary, investment management and credit services to ultra-high-net worth and high-net worth individuals and families. It also provides investment management capabilities to global institutional clients through Wells Fargo Funds and separate accounts. In FY2018, WIM segment reported revenue of US$16,376 million, which accounted for 17.8% of the company’s total revenue.

Wells Fargo & Company History

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History

HISTORY

Divestiture

Year: 2019

In April, Wells Fargo agreed to sell its retirement plan services business to Principal Financial Group Inc. for US$1.2 billion.

Plans/Strategy

Year: 2019

In September, the company announced its plan to introduce new internal settlement service Wells Fargo Digital Cash, which will run on the company’s first DLT platform.

Plans/Strategy

Year: 2019

In September, Wells Fargo announced its plan to introduce new internal settlement service Wells Fargo Digital Cash, which will run on the company’s first DLT platform.

New Products/Services

Year: 2019

In September, WFC launched Wells Fargo Digital Cash, the tokenized dollar.

Corporate Changes/Expansions

Year: 2019

In October, the bank opened its new downtown bank branch.

New Products/Services

Year: 2019

In November, the company introduced corporates real-time payment services on RTP network.

New Products/Services

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Year: 2018

In February, the company announced that its customers will use Garmin’s new vívoactive 3 smartwatch.

New Products/Services

Year: 2018

In February, the company introduced AI enhancement to mobile app.

Divestiture

Year: 2018

In February, the company divested auto finance business in Puerto Rico for US$1.7 billion.

Corporate Changes/Expansions

Year: 2018

In March, the company selected Blackhawk network to expand its Go Far rewards portfolio.

Contracts/Agreements

Year: 2018

In April, Wells Fargo partnered with NextEra Energy on 14 wind projects in California, Indiana, Nebraska, the US, to boost clean energy.

Corporate Changes/Expansions

Year: 2018

In April, the company's Middle Market Banking group opened a new regional office in New England, expanding its presence.

Contracts/Agreements

Year: 2018

In April, the company signed consent orders with the Office of the Comptroller of the Currency (OCC) and Consumer Financial Protection Bureau (CFPB) to address matters related to the company’s compliance risk management program.

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Financing Agreements

Year: 2018

In January, Visible Alpha raised US$38 million in equity financing round led by Wells Fargo, BNP Paribas and others.

Contracts/Agreements

Year: 2018

In August, the company granted US$530 million construction loan facility to BPP for One Manhattan West.

Contracts/Agreements

Year: 2018

In August, the company and Origis Energy entered into a financing contract for a solar generation facility located in Orange County, Florida.

Contracts/Agreements

Year: 2018

In August, Wells Fargo and Origis Energy entered into a financing contract for a solar generation facility located in Orange County, Florida.

New Products/Services

Year: 2018

In August, Wells Fargo introduced new iteration of its Target My Retirement solution for 401(k) plan participants to get access to a personalized investment solution.

Others

Year: 2018

In August, Wells Fargo invested US$5 million to establish grid alternatives tribal solar accelerator fund.

New Products/Services

Year: 2018

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In October, Wells Fargo launched the Control Tower, a personal finance management app nationwide.

Contracts/Agreements

Year: 2018

In October, the company's Wells Fargo Home entered into an agreement with eOriginal to allow the purchase of eNotes via Wells Fargo Funding, the Wells Fargo’s correspondent channel.

Contracts/Agreements

Year: 2018

In November, Wells Fargo Capital Finance and LBC Credit Partners partnered to recapitalize AirBorn.

Acquisitions/Mergers/Takeovers

Year: 2018

In December, a consortium of Investors including the company, Prudential, JPMorgan, HSBC, Credit Suisse, NEXT Investors, and Barclays acquired a majority stake in Simon Markets from Goldman Sachs.

Plans/Strategy

Year: 2018

In December, Wells Fargo Asset Management announced its plan to open branches in Frankfurt and Paris.

New Products/Services

Year: 2018

In June, the company and American Express launched a Propel Card with triple points and without an annual fee.

Contracts/Agreements

Year: 2017

Wells Fargo entered into an agreement with Intuit Inc., which allows the company's customers who use financial management tools such as QuickBooks Online, Mint, and TurboTax Online to use an application-programming interface (API) when importing their bank account information.

Contracts/Agreements

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Year: 2017

In June, USI Insurance Services signed an agreement with Wells Fargo to acquire Wells Fargo Insurance Services USA.

Commercial Operation

Year: 2017

In July, Wells Fargo to utilize Zelle, a new peer-to-peer payment app.

Contracts/Agreements

Year: 2017

In June, the company and Doosan Fuel Cell America, Inc. partnered to expand its business in the US.

New Products/Services

Year: 2017

In November, the company launched Intuitive Investor, a hybrid online offering from Wells Fargo Advisors.

Contracts/Agreements

Year: 2017

In November, the company entered into contract with Expensify and PointServe regarding the data- exchange models.

Corporate Changes/Expansions

Year: 2017

In October, Wells Fargo Corporate Banking, part of Wells Fargo & Company, announced formation of Hotel Franchise Finance division for provision of real estate financing to multiunit owners and operators of franchised hotels in the select-service and extended-stay segments.

Business / Operations Closure

Year: 2017

In October, Wells Fargo announced closing of call center at 1015 Club Avenue, in the Lehigh Shopping

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Center.

Contracts/Agreements

Year: 2017

In November, Wells Fargo in collaboration with American Express, JPMorgan Chase and Bank of America, formed TruSight to transform third-party risk management.

New Products/Services

Year: 2017

In November, the company launched Intuitive Investor, a hybrid online offering which simplifies the experience of investing.

New Products/Services

Year: 2017

In October, the company introduced a new way to use company’s ATMs without their card, tap and pay near-field communication (NFC) functionality.

New Products/Services

Year: 2017

In October, the company announced contactless withdrawals from phones or payment-enabled wearable devices at more than 5,000 of its ATMs.

Acquisitions/Mergers/Takeovers

Year: 2016

Wells Fargo Rail purchased GE Rail Services business from GE Capital. Wells Fargo launched Wells Fargo Propel American Express Card including the Propel 365 Card and Propel World Card. The company’s First Union Rail changed its name to Wells Fargo Rail. Wells Fargo acquired GE Capital's commercial distribution finance and vendor finance platforms as well as a portion of its corporate finance business. Wells Fargo Bank, N.A. enabled its customers the ability to use Samsung Pay, the new mobile payment service from Samsung. The company introduced ‘Go FarTM Rewards’, available to customers with a rewards-based credit card from Wells Fargo. Zurich American Insurance Company (ZAIC), acquired Rural Community Insurance Agency (RCIA) and its subsidiary Rural Community Insurance Co. (RCIC) from Wells Fargo Insurance for $700 million. Wells Fargo Securities was designated as a Primary Dealer by the Federal Reserve Bank of New York. The company launched FastFlexSM Small Business Loan. Wells Fargo also launched Wells Fargo Wallet, the new mobile wallet. The company announced

Wells Fargo & Company History

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yourFirstMortgageSM, a new home loan program. Wells Fargo entered into an agreement with Xero. The agreement creates data-sharing platform for customers to manage their finances. The company also launched Wells Fargo Cash Wise, a new Visa credit card that offers unlimited 1.5% cash rewards on net purchases. Wells Fargo completed the acquisition of GE Capital’s Commercial Distribution Finance in Asia, Australia, New Zealand, Europe, Middle East and Africa. The company announced the formation of a new Payments, Virtual Solutions and Innovation group. Wells Fargo announced to eliminate all product sales goals in retail banking, effective January 1, 2017. Wells Fargo Securities announced that SS&C Technologies Holdings, Inc., a provider of financial services software and software-enabled services, has agreed to acquire its fund administration business, Wells Fargo Global Fund Services (GFS).

Plans/Strategy

Year: 2016

In July, the company to open its European headquarters in the City of London valued GBP330 million.

Corporate Changes/Expansions

Year: 2016

In March, the company to expand its operations with a new commercial banking regional office in Manchester.

Plans/Strategy

Year: 2016

In July, the company planned to initiate a robo-advisory service in 2017.

Corporate Changes/Expansions

Year: 2016

In August, the company opened its first Middle Market Banking office in Albany, NY.

Corporate Changes/Expansions

Year: 2016

In May, the company to open a regional commercial banking in downtown Wichita, US.

Acquisitions/Mergers/Takeovers

Year: 2015

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The company announced that its customers participating in The Wells Fargo Rewards Program would be able to redeem their rewards at more than 12,500 Wells Fargo ATMs. Wells Fargo launched the HomeLIFT program for Fresno, Modesto and Stockton to help boost homeownership and strengthen Central Valley neighborhoods. Wells Fargo launched Smart2Go, a mobile application for advisor and client conversations. Later, Wells Fargo launched new Innovation Group, focused on research and development; innovation strategies; payment strategies; design and delivery; and analytics. Wells Fargo Bank withdrew from mortgage marketing services and desk rental agreements with real estate firms, builders and certain other referral sources. Wells Fargo removed its foreign transaction fees on all business credit card and business line of credit access card transactions made outside the US effective October 1, 2015.

Corporate Changes/Expansions

Year: 2015

In December, the company opened its first Regional Commercial Banking Office in New York’s outer boroughs.

Corporate Changes/Expansions

Year: 2015

In August, the company oped it snew office at Charles Hight Square off Turner McCall, Rome, Georgia.

Acquisitions/Mergers/Takeovers

Year: 2014

The company provided a £75 million ($102.9 million) line of credit to Legal & General Property (LGP), an institutional asset manager in the UK, for its second UK Property Income Fund. Later, the company entered into an agreement to fund, issue and service Dillard's Inc.'s branded private label and co-brand credit cards. Wells Fargo Insurance completed a transaction with USI Insurance Services to sell 40 of its primarily smaller regional insurance brokerage and consulting locations. At the same time, Wells Fargo and American Express launched the new Propel 365 and Propel World credit cards. Wells Fargo introduced a new feature on Wells Fargo CEO Mobile for its commercial card customers. This feature enables its customers to immediately upload paper receipts for processing and reimbursement by simply snapping their photos. Wells Fargo added Philippine National Bank (PNB) to its ExpressSend remittance network. Wells Fargo and PNB will allow Wells Fargo ExpressSend customers to send money to family and friends in more than 600 PNB locations in the Philippines. Wells Fargo added SCOTIABANK and Remesas BAC Credomatic to its network of ExpressSend payout locations in El Salvador. The new remittance network members will bring the total number of payout locations in El Salvador to more than 500, along with more than 1,200 ATMs. Wells Fargo Bank, N.A. announced that it would offer customers the ability to use Apple Pay, the new mobile payment service from Apple. Apple Pay would offer Wells Fargo customers the ability to make purchases by integrating Apple-designed hardware, software and services. Wells Fargo Advisors (WFA), the brokerage unit of Wells Fargo, launched Income Center, an extension of the company's proprietary Envision planning process. The Income Center is a suite of

Wells Fargo & Company History

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applications that provides clients nearing or in retirement, a detailed view of their retirement income and offers them the ability to explore various retirement income solutions with their advisor. Wells Fargo joined OptBlue, the new merchant acquiring program that extends US small merchant coverage. Wells Fargo started providing a full, one-stop servicing solution for American Express Card acceptance to eligible US merchants with projected American Express charge volume of less than $1 million per year. Wells Fargo NeighborhoodLIFT program invested $5 million to boost homeownership in Salt Lake City. Wells Fargo launched Private Student Loan Modification Program. This program is to provide assistance to customers experiencing financial hardship or distress. Wells Fargo's Wealth, Brokerage and Retirement (WBR) division launched Wells Fargo Investment Institute (WFII). WFII brings together the investment research, strategy, manager research and publications teams from WBR's four lines of business to create a single group with a goal of providing advice to the Wells Fargo's financial and wealth advisors and clients.

Contracts/Agreements

Year: 2013

Wells Fargo Securities joined the CME Group, a derivatives exchange and clearing house, as a direct listed futures and options clearing member. The company announced that it would expand its commercial real estate services in the UK. Wells Fargo Insurance, a part of Wells Fargo, expanded its International Specialty Group by establishing three teams to serve the insurance and risk management needs of the US multinational companies.The company's subsidiary, Wells Fargo Capital Finance acted as left lead arranger, book manager, and administrative agent on a $1 billion, multi-currency, senior secured revolving credit facility for Novelis, Inc. Wells Fargo Securities formed a client trade services group within Wells Fargo Securities' Markets division to bring together its businesses that offer clearing, trade execution, technology and operational solutions to corporate and institutional clients. The company acquired Commerzbank's Hypothekenbank Frankfurt (formerly Eurohypo), the UK commercial real estate portfolio. The company's wholly owned subsidiary, Wells Fargo Ventures, LLC, withdrew from its eight joint ventures in mortgage lending. Wells Fargo entered into a partnership with American Express to issue credit cards accepted on the AE network. The company reached an agreement with the Federal Home Loan Mortgage Corporation (Freddie Mac) to resolve all repurchase liabilities related to loans sold to Freddie Mac prior to Jan. 1, 2009. The $869 million agreement was adjusted for credits related to certain prior repurchase, resulting in a one-time cash payment to Freddie Mac of approximately $780 million. Wells Fargo reached an agreement with Isis, the mobile commerce joint venture created by AT&T Mobility, T-Mobile USA, Inc., and Verizon Wireless, to allow Wells Fargo Visa consumer credit card holders to load their cards into the Isis Mobile Wallet. The company reached an agreement with the Federal National Mortgage Association (Fannie Mae) to resolve all repurchase liabilities related to loans sold to Fannie Mae that were originated prior to January 1, 2009. The $591 million agreement was adjusted for credits related to certain prior repurchases, resulting in a one-time cash payment to Fannie Mae of approximately $541 million.

Acquisitions/Mergers/Takeovers

Year: 2012

Wells Fargo acquired Burdale Financial Holdings Limited and the portfolio of Burdale Capital Finance, Inc. from the Bank of Ireland. The company acquired BNP Paribas' North American reserved-based and

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related diversified energy lending business. The company launched Abbot Downing brand to serve ultra high net worth clients, their foundations and endowments. Wells Fargo partnered with United Way Worldwide for a five-year, $5 million partnership to provide multi-year financial counseling for low- and moderate-income (LMI) households. Wells Fargo acquired WestLB's subscription finance portfolio containing approximately $6 billion in commitments. The company renamed its hedge fund administration and middle-office service provider, LaCrosse Global Fund Services as Wells Fargo Global Fund Services. Wells Fargo Securities acquired Merlin Securities, LLC, a prime brokerage services and technology provider, and rebranded it as Wells Fargo Prime Services, LLC. Wells Fargo's subsidiary Wells Fargo Asset Management acquired a minority ownership stake in privately held The Rock Creek Group, a Washington, D.C.-based fund of hedge funds firm with approximately $7 billion in assets under management.

Contracts/Agreements

Year: 2011

Wells Fargo and Baoding Tianwei Group Co., Ltd. signed a strategic cooperation agreement for the development and building of solar power products in the US. Wells Fargo Advisors, the company's retail brokerage firm, completed the conversion of Wells Fargo Investments, WellsTrade, and H.D. Vest onto its brokerage technology platform. Wells Fargo remarketed approximately $2.5 million principal amount of its remarketable junior subordinated notes due 2042 (the Notes), as required by the indenture dated as of February 1, 2006 between the company (as successor to Wachovia Corporation) and the US Bank. As a result of the remarketing, the interest rate on the notes was reset to a rate of about 3.6% per annum, commencing February 15, 2011. Wells Fargo acquired all of the US based operating assets of Foreign Currency Exchange Corporation (FCE), a wholly owned subsidiary of the Bank of Ireland Group. Wells Fargo and Guodian United Power Technology Company Ltd. signed a strategic cooperation agreement to explore opportunities in the wind industry in the US. Wells Fargo sold its H.D. Vest Financial Services business to Parthenon Capital Partners. The company acquired EDIFY, LLC, an employee benefits consulting firm based in Fort Lauderdale, Florida. Wells Fargo acquired LaCrosse Global Fund Services (LaCrosse), an independently managed hedge fund administration and middle-office service provider from Cargill. Wells Fargo Insurance Services acquired Procomp Benefit Resources, Inc., an employee benefits brokerage and consulting firm based in Hazlet, New Jersey. Wells Fargo Bank acquired the remaining equity interest in CP Equity LLC, the sole owner of Castle Pines Capital LLC and its affiliates, Castle Pines Capital International LLC and CPC Global LLC. Wells Fargo acquired EverKey Global Partners, an investment boutique that offers global equity strategies to institutional clients.

Acquisitions/Mergers/Takeovers

Year: 2010

Wells Fargo acquired AIM Administration, Inc., an employee benefits insurance brokerage firm located in Salt Lake City, Utah. The company completed its acquisition of the North American factoring portfolio of the Commercial Services Division of GMAC Commercial Finance. Wells Fargo acquired 70.2 million warrants to purchase Wells Fargo common stock in an auction conducted on behalf of the US Treasury by Deutsche Bank Securities. The warrants were issued by Wells Fargo to the US Treasury in connection with its investment in Wells Fargo under the capital purchase program. The price per warrant was $7.70,

Wells Fargo & Company History

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and the 70.2 million warrants acquired represent 63.6% of the 110.3 million outstanding warrants.

Acquisitions/Mergers/Takeovers

Year: 2009

Wells Fargo acquired Sierra Self Insurance Services, LLC., a retail insurance broker in Grass Valley, California, northwest of Sacramento. The company acquired iLeader Risk Management Solutions, an insurance broker located in Tampa, Florida; and Orca Bay Benefits, LLC, an employee benefits insurance broker located in Mercer Island, Washington.

Acquisitions/Mergers/Takeovers

Year: 2008

Wells Fargo acquired Citibank Customer Relationships in Northern Nevada, Sierra Foothills. The company acquired Flatiron, an insurance premium finance company and a subsidiary of TD Banknorth, N.A. Wells Fargo acquired Wachovia, and EMAR Group (an independently owned commercial insurance agency).

Acquisitions/Mergers/Takeovers

Year: 2007

Acordia, Inc., an insurance brokerage firm and part of Wells Fargo, and its affiliated companies changed their name to Wells Fargo Insurance Services. Wells Fargo acquired CIT's Construction Unit and Greater Bay Bancorp.

Acquisitions/Mergers/Takeovers

Year: 2006

Wells Fargo acquired a $140 billion mortgage servicing portfolio from Washington Mutual. Wells Fargo launched contactless Visa credit cards for customers. The company acquired: Barrington Associates, a private investment banking firm; Reilly Mortgage Group, a privately-owned real estate finance firm; and employee benefit trust business of LaSalle Bank. It also opened a technology resource facility in Hyderabad, India. The company acquired Evergreen Funding Corporation, a Dallas-based factoring company that served small and middle market companies.

Asset Disposal

Year: 2005

The company sold its consumer auto receivables business unit to CompuCredit Corporation, an Atlanta- based consumer finance company. Trans Canada Credit Corporation, the company's consumer finance

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business, changed its name to Wells Fargo Financial Corporation Canada. Wells Fargo Securities, the company's investment banking subsidiary, discontinued the provision of sell-side institutional equity brokerage and research products and services. The company's primary subsidiary Wells Fargo Bank acquired Regulus Group's wholesale remittance processing operations.

Acquisitions/Mergers/Takeovers

Year: 2004

Wells Fargo acquired assets under management, valued at $34 billion, from Strong Financial. The purchase included $27 billion in mutual fund assets and $7 billion in institutional investment accounts. The company acquired First Community Capital Corporation, a Houston-based bank holding company.

Acquisitions/Mergers/Takeovers

Year: 2003

Wells Fargo acquired Pacific Northwest Bancorp. This acquisition increased Wells Fargo's presence in western and central Washington.

Acquisitions/Mergers/Takeovers

Year: 2002

Wells Fargo acquired FAS Holdings, a San Diego-based provider of full-service brokerage and investment services to retail clients through independent contractor, financial consultants and broker/dealers. The company purchased 85% of the assets of Commerzbank's asset management subsidiary in the US. The assets were managed by San Francisco based Montgomery Asset Management.

Acquisitions/Mergers/Takeovers

Year: 2001

Wells Fargo acquired HD Vest, a provider of financial services delivered via tax professionals in the US.

Financing Agreements

Year: 2000

In April, Wells Fargo and other companies raised US$30 million in Netstock Direct Corp through a funding round.

Acquisitions/Mergers/Takeovers

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Year: 2000

The company acquired First Security Corporation.

Acquisitions/Mergers/Takeovers

Year: 1998

The company was formed following a merger between Norwest Corporation and Wells Fargo & Company. The merged entity was named Wells Fargo & Company (Wells Fargo). Prior to the merger, Norwest Corporation provided banking services to customers in 16 states of the US, and other financial services through its subsidiaries.

New Products/Services

Year: 1995

Wells Fargo was one of the banks to offer online account access to its customers.

New Products/Services

Year: 1989

The company launched its personal computer-banking services.

Incorporation/Establishment

Year: 1852

Wells Fargo & Company (Wells Fargo or 'the company') was founded in New York City, and opened for business in San Francisco.

Wells Fargo & Company Key Employees

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Key Employees

KEY EMPLOYEES

Name Job Title Board Compensation Elizabeth A. Duke Chairman Executive Board Gary Owen Head-Information Security,

Chief Information Security Officer

Senior Management

Steve Hagerman Head-Consumer Lending Technology

Senior Management

Julia Wellborn Head-Private Wealth Management

Senior Management

Nico Marais Chief Executive Officer- Wells Fargo Asset Management, Head-Wells Fargo Asset Management

Senior Management

John Langley Head-Corporate and Investment Banking, Europe, the Middle East and Africa, President-Europe, the Middle East and Africa

Senior Management

John R. Shrewsberry Chief Financial Officer, Senior Executive Vice President

Senior Management

Amanda Norton Chief Risk Officer, Senior Executive Vice President

Senior Management

David Kowach Head-Community Banking Senior Management Jim Hays Head-Wells Fargo Advisor,

President-Wells Fargo Advisor

Senior Management

Price Sloan Chief Strategic Enterprise Risk Officer

Senior Management

Andrew Rowe Executive Officer-Enterprise Customer Excellence

Senior Management

John D. Baker II Director Executive Board Elli Dai Executive Officer-Small

Business and Personal Lending Group

Senior Management

Charles H. Noski Director Non Executive Board Tim Traudt Head-Interim, Wealth

Management Senior Management

Donald M. James Director Non Executive Board

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Colleen Taylor Head-Merchant Services Senior Management James H. Quigley Director Non Executive Board David Gillespie Head-Coverage - Corporate

& Investment Banking Senior Management

Celeste A. Clark Director Non Executive Board Kate Clifford-Toomey Chief Operating Officer-

Corporate Risk Senior Management

Theodore F. Craver, Jr. Director Non Executive Board Yeng Felipe Butler Head-Liquidity Client Group,

Asset Management Senior Management

Wayne M. Hewett Director Non Executive Board Fiona Gallagher Chief Executive Officer-

Wells Fargo Bank International Unlimited Company

Senior Management

Maria R. Morris Director Non Executive Board Richard Payne Director Non Executive Board C. Allen Parker General Counsel Senior Management Charles W. Scharf Chief Executive Officer,

Director, President Executive Board

Juan A. Pujadas Director Non Executive Board Ronald Sargent Director Non Executive Board Tracy Kerrins Chief Information Officer-

Enterprise Functions Technology

Senior Management

Suzanne M. Vautrinot Director Non Executive Board 337048 William M. Daley Vice Chairman, Public

Affairs Senior Management

Douglas R. Edwards Executive Vice President, General Counsel-Interim

Senior Management

Scott Powell Chief Operating Officer Senior Management Steven D. Black Director Non Executive Board Hannah Skeates Head-Environmental, Social,

and Governance (ESG) Senior Management

Muneera S Carr Controller Senior Management David C. Galloreese Head-Human Resources,

Senior Executive Vice President

Senior Management

Rob Ritchie Head-Banking and Capital Markets-London

Senior Management

Don Fracchia Head-SBA Division Senior Management Sean Passmore Head- Military Talent Senior Management

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External Recruiting and Enterprise Military and Veteran Initiatives

Ellen Patterson General Counsel, Senior Executive Vice President

Senior Management

Jim Perry Head-Southern Regional Group

Senior Management

Derek A. Flowers Head-Strategic Execution and Operations, Senior Executive Vice President

Senior Management

Mike Weinbach Chief Executive Officer- Consumer Lending

Senior Management

Perry G. Pelos Chief Executive Officer- Commercial Banking

Senior Management

Saul Van Beurden Head-Technology, Senior Executive Vice President

Senior Management

Mary T. Mack Senior Executive Vice President-Community Banking and Consumer Lending

Senior Management

Nate Hurst President-Wells Fargo Foundation

Senior Management

Avid Modjtabai Senior Executive Vice President-Payments, Virtual Solutions and Innovation

Senior Management

Jay Bryson Chief Economist - Wells Fargo Corporate & Investment Banking

Senior Management

Jonathan G. Weiss Senior Executive Vice President-Wealth and Investment Management

Senior Management

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Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Elizabeth A. Duke

Board:Executive Board Job Title:Chairman Since:2018 Age:67

Ms. Duke is the Chairperson at Wells Fargo. She served as the Vice- Chairperson at Wells Fargo from 2016 to 2017. Ms. Duke served as the Executive Vice President at Wachovia Bank, N.A., from 2004 to 2005, the Chief Operating Officer of TowneBank from 2005 to 2008, and Executive Vice President at SouthTrust Bank from 2001 to 2004. Previously, she served as a member of the Board of Governors of the Federal Reserve System from 2008 to 2013, where she served as the Chairperson of the Federal Reserve's Committee on Consumer and Community Affairs and as a member of its Committee on Bank Supervision and Regulation, Committee on Bank Affairs, and Committee on Board Affairs.

Nico Marais

Board:Senior Management Job Title:Chief Executive Officer-Wells Fargo Asset Management, Head-Wells Fargo Asset Management Since:2019

Mr. Nico Marais has been the Head of Wells Fargo and Chief Executive Officer Asset Management at Wells Fargo. Prior to this, he served as the President and co- Chief Executive Officer at Wells Fargo Asset Management. Previously, he served in several leadership positions in Barclays Global Investors, including head of Active Equity-Europe and global head of Investment Strategy, as a gold trader for South African Reserve Bank and as a bond trader for World Bank Group. Earlier, Mr. Nico also served as the global head of Active Portfolio Management for BlackRock’s Multi-Asset and Client Solutions team and the head of Multi-Asset Investments and Portfolio Solutions at Schroders.

John R. Shrewsberry

Board:Senior Management Job Title:Chief Financial Officer, Senior Executive Vice President Since:2014 Age:53

Mr. Shrewsberry is the Chief Financial Officer and Senior Executive Vice President of Wells Fargo. Previously, Mr. Shrewsberry served as the Group Head of Wells Fargo Commercial Capital from 2001 to 2005, as the Head of Wells Fargo Securities from 2006 to 2014, and the President and Chief Executive Officer of Wells Fargo Securities, LLC from 2009 to 2014. Earlier, he worked at Goldman Sachs and Credit Suisse First Boston in the principal finance areas. Mr. Shrewsberry started his career as a Certified

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Public Accountant at Coopers & Lybrand. He currently serves on the board for the Committee on Capital Markets Regulation and as the Co-Chairman of the Financial Economics Institute at Claremont McKenna College.

Amanda Norton

Board:Senior Management Job Title:Chief Risk Officer, Senior Executive Vice President Since:2018 Age:52

Ms. Amanda Norton is the Senior Executive Vice President and Chief Risk Officer of Wells Fargo. Previously, she served as the Chief Risk Officer of Consumer and Community Banking at JPMorgan Chase & Co., from 2013 to 2018 and the Chief Risk Officer for home lending from 2011 2013. Earlier, Ms. Amanda spent six years of her career at Chase Manhattan Bank, as a market and credit risk executive at Ally Financial Inc and also served Bank of America in various roles for 14 years. Ms. Norton also serves as a Director of the University of Bath Alumni Foundation, The Financial Clinic and the Risk Management Association.

Price Sloan

Board:Senior Management Job Title:Chief Strategic Enterprise Risk Officer Since:2020

Mr. Sloan serves as the Chief Strategic Enterprise Risk Officer of the company since January 2020. Prior to this, he held several leadership roles at TD Bank, including Head of Acquisition Integration and TD Ameritrade Bank Product Partnerships, President and Chief Executive Officer of TD Group U.S. Holdings, and Head of Enterprise and Operational Risk Management for TD Bank Group Toronto. Mr. Sloan also held various risk, legal and business roles at Bank of America, including Head of International Operational Risk and Enterprise Reputational Risk, Chief Risk Officer for Europe, the Middle East, and Africa, and Chief Operating Officer for Global Investment Banking.

John D. Baker II

Board:Executive Board Job Title:Director Since:2009 Age:70

Mr. Baker has been a Director at Wells Fargo since 2009. He also serves as the Chairman of Panadero Aggregates Holdings, LLC, and a Senior Advisor for Brinkmere Capital Partners. Mr. Baker served as the President and Chief Executive Officer of Patriot from 2008 to 2010. Prior to this, he was President and Chief Executive Officer of Florida Rock Industries, Inc.

Donald M. James

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Board:Non Executive Board Job Title:Director Since:2009 Age:70

Mr. James has been a Director at Wells Fargo since 2009. He served as the Chairman and a Chief Executive Officer of Vulcan Materials Company. Mr. James is also a Director at Southern Company. He joined Vulcan Materials in 1992 and progressed through a variety of management positions at Vulcan Materials before being named the Chief Executive Officer in 1996 and the Chairman in 1997. Before joining Vulcan Materials, Mr. James was a Partner at the law firm of Bradley, Arant, Rose & White in Birmingham, Alabama.

James H. Quigley

Board:Non Executive Board Job Title:Director Since:2013 Age:67

Mr. Quigley has been a Director at Wells Fargo since 2013. He is a retired partner and Chief Executive Officer of Emeritus of Deloitte. Prior to that, Mr. Quigley served as the Chief Executive Officer of Deloitte Touche Tohmatsu Limited (DTTL, the Deloitte global network) from 2007 to 2011, and as the Chief Executive Officer of Deloitte LLP, the US member firm of DTTL, from 2003 to 2007.

Charles W. Scharf

Board:Executive Board Job Title:Chief Executive Officer, Director, President Since:2019

Mr. Charles W. Scharf has been the Chief Executive Officer, Director, and President of the company since 2019. Prior to this, he was the Chairman and Chief Executive Officer of Bank of New York Mellon. Mr. Scharf was the Chief Executive Officer of Visa, Inc. before joining BNY Mellon. He served as the Managing Director of One Equity Partners of JP Morgan Chase & Co.

Tracy Kerrins

Board:Senior Management Job Title:Chief Information Officer-Enterprise Functions Technology Since:2019

Ms. Tracy Kerrins has been the Chief Information Officer of Enterprise Functions Technology at Wells Fargo since 2019. Prior to this, she was the Chief Operations and Technology Officer of Antares Capital. Previously, Ms. Kerrins led Bank of America’s global wholesale credit and banking technology division and was a consultant at Accenture and PricewaterhouseCoopers.

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Mary T. Mack

Board:Senior Management Job Title:Senior Executive Vice President-Community Banking and Consumer Lending Since:2017 Age:56

Ms. Mack currently serves as the Senior Executive Vice President of Community Banking at Wells Fargo. She joined the company in 1984 and served in many senior management positions since then. Ms. Mack is a past member of Civic Progress St. Louis and past Co-Chair of the St. Louis Regional Chamber’s Financial Forum. She also served on the Executive committee of the United Way of Greater St. Louis, the Board or Executive committee for the Johnson C. Smith University, the United Way of Central Carolinas, Junior Achievement, Childcare Resources, and the Arts & Science Council. Ms. Mack is also a founding member of the Foundation for Fort Mill Schools. she is a graduate of Davidson College in North Carolina with a Bachelor’s degree in International Political Economy.

Avid Modjtabai

Board:Senior Management Job Title:Senior Executive Vice President-Payments, Virtual Solutions and Innovation Since:2011 Age:57

Ms. Modjtabai has been the Senior Executive Vice President of Consumer Lending and Operations at Wells Fargo since 2011. Prior to this, she was the Head of the Technology and Operations Group and Chief Information Officer. Ms. Modjtabai also served as the Head of Human Resources. She is an Advisory Member of the Columbia Business School Social Enterprise Program and Stanford Center on Longevity.

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Major Products & Services

MAJOR PRODUCTS & SERVICES

Wells Fargo is a financial holding company, which provides retail, commercial and corporate banking services. The company’s major products and services include:

Community banking:

Lines of credit Auto floor plan lines Equity lines and loans Equipment and transportation loans Education loans Origination and purchase of residential mortgage loans Credit cards Equipment leases Real estate and other Commercial financing Small business administration financing Venture capital financing Cash management Retirement plans Health Savings Accounts Merchant payment processing Private label financing solutions Checking accounts Savings deposits Market rate accounts Individual retirement accounts Time deposits Global remittance and debit cards

Wholesale banking:

Commercial loans Lines of credit Letters of credit Asset-based lending Equipment leasing International trade facilities Trade financing Treasury management Investment management Institutional fixed income sales Interest rate, commodity and equity risk management

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Online/electronic products Insurance Institutional separate accounts Mutual funds Construction loans Development loans Secured and unsecured lines of credit Interim financing arrangements for completed structures Rehabilitation loans Housing loans Permanent loans for securitization

Wealth, brokerage and retirement:

Financial planning Private banking Investment management

Community banking:

Mortgage servicing Payroll services

Wholesale banking:

International trade facilities Collection services Foreign exchange services Corporate trust fiduciary and agency services Investment banking services CRE loan servicing Real estate and mortgage brokerage services

Wealth, brokerage and retirement:

Financial advisory services Trust services Reinsurance services

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SWOT Analysis

SWOT ANALYSIS

Wells Fargo & Company (Wells Fargo or ‘the company) is a financial holding company, providing retail, commercial and corporate banking services in the US. Strong market position in US, and strong growth in interest income are the company's major strengths, whereas lawsuit and penalties remain causes for concern. Positive outlook for global investment banking and brokerage industry and positive outlook for global investment banking and brokerage industry are likely to offer growth opportunities to the company. However, increase in regulatory challenges, competitive pressure and cybersecurity risks could affect its business operations.

Strength

Strong market position in US Strong growth in interest income

Weakness

Lawsuit and penalties imposes additional costs on the company

Opportunity

Positive outlook for global investment banking and brokerage industry Positive outlook for US retail lending industry

Threat

Cybersecurity risks could affect the company’s financial condition and results of operations Competitive pressure Increase in regulatory challenges

Strength

Strong market position in US

Wells Fargo holds a strong market position in the US financial services industry. At the end of FY2018, it was the one of the largest lenders in the US with assets of US$1.9 trillion. The company is the largest provider of home loan and student loans, second largest retail mortgage lender, third largest used auto lender, largest commercial real estate lender in the US and third largest provider of full-service retail brokerage services in the US. The company operates across the country at 7,800 locations and with 13,000 ATMs as on December 31, 2018. . Strong market position provides significant economies of scale benefits for the company.

Strong growth in interest income

Wells Fargo reported a consistent growth in its interest income over the past few years, In FY2018, the company’s interest income stood at US$64,647 million as compared to US$58,909 million in FY2017, an annual growth of 9.7%. The increase in the company’s interest income was due to increase in loans and debt securities. Strong interest income enables the company to pursue its growth and expansion initiatives, and strengthens its liquidity and capital position, which provide it an overall financial stability.

Weakness

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Lawsuit and penalties imposes additional costs on the company

The company is involved in lawsuits and regulatory penalties. In 2018, Wells Fargo agreed to pay US$1 billion in civil money penalties to the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau to resolve some matters. The matter is related to its compliance risk management program and past practices involving certain mortgage interest rate lock extensions and certain automobile collateral protection insurance policies. Involvement in lawsuits and regulatory penalties render the company incur additional costs, which affects its profitability.

Opportunity

Positive outlook for global investment banking and brokerage industry

The global investment banking and brokerage industry has experienced healthy growth in recent years and also expected to grow in the next few years. According to in-house-research the global investment banking and brokerage market is forecast to reach a value of US$78 billion by 2023 from US$73.5 billion in 2018, growing at a CAGR of 1.2% during 2018-2023. Europe accounted for 25.1% of the global investment banking and brokerage market value in 2018, followed by Asia-Pacific (22.7%), Japan (5%) and rest of the world (47.2%). The company stands to benefit from the growing investment banking and brokerage industry, which in turn will help drive the company's financial and operational growth.

Positive outlook for US retail lending industry

The retail lending industry in US has experienced healthy growth in recent years and is expected to grow in the next few years. According to in-house-research the retail lending industry in the US is forecast to reach a value of US$16,782 billion by 2023 from US$14,346.9 billion in 2018, growing at a CAGR of 3.2% during 2018-2023. Mortgage credit was the largest segment of the retail lending market in the US, which accounted for 72.1% of the market's total value in 2018, followed by consumer credit (27.9%). The US accounted for 38.2% of the global retail lending market value in 2018. The company offers retail banking services across the US. Thus, it stands to benefit from the growing retail lending industry in the US, which in turn will help drive the company's financial and operational growth.

Threat

Cybersecurity risks could affect the company’s financial condition and results of operations

The incidence and severity of financial fraud in the US has been increasing for the past few years. The company has experienced distributed denial-of-service attacks from technologically sophisticated third parties. Such attacks could disrupt or disable online banking services and prevent banking transactions. The company also periodically experiences other attempts to breach the security of its systems and data. Cyberattack risks may also occur with the company’s third-party service providers, and may result in financial loss or liability, which in turn could affect the company’s financial condition and results of

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operations.

Competitive pressure

The company operates in financial services industry, which is highly competitive. The company competes with banks, thrifts, credit unions, investment banking firms, investment advisory firms, brokerage firms, investment companies, insurance companies, mortgage banking companies, credit card issuers, mutual fund companies and e-commerce and other internet-based companies. Competition is based on a number of factors including, among others, customer service, quality and range of products and services offered, price, reputation, interest rates on loans and deposits, lending limits and customer convenience. In the recent years, there has been substantial consolidation among companies in the financial services industry. Wells Fargo will continue to experience intensified competition as consolidation and globalization of the financial services industry may result in larger, better-capitalized and more geographically diverse companies that are capable of offering a wider array of financial products and services at more competitive prices. Such intense competition is likely to erode market share and profitability of the company.

Increase in regulatory challenges

Financial services industry is undergoing sweeping financial legislative and regulatory reform efforts since the Great Depression. The year 2011 saw implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act as well as creation of Basel III, a global regulatory framework for a more resilient banking system worldwide. While these and many other regulatory changes worldwide will affect companies such as Wells Fargo less than other global institutions, it incurs, and will continue to incur, higher operating costs from these reforms as well as from the generally harsher regulatory environment. In addition, Wells Fargo could also be affected by Volcker Rule, which was adopted in 2013. The Volcker Rule includes the provisions prohibiting proprietary trading and restricting the activities involving private equity and hedge funds. Increasing regulatory challenges on one hand pose non-compliance risk and on the other hand increase compliance spending.

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Top Competitors

TOP COMPETITORS

The following companies are the major competitors of Wells Fargo & Company

American Express Co American National Bankshares Inc. BancFirst Corporation Bank of America Corp Capital One Financial Corp Citigroup Inc Fifth Third Bancorp KeyCorp Regions Financial Corp State Street Corp The Bank of New York Mellon Corp Truist Financial Corp U.S. Bancorp

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Company View

COMPANY VIEW

A statement by Ms. Elizabeth A. Duke, the Chairperson at Wells Fargo & Company is given below. The statement has been taken from the company's annual report for FY2018.

Looking back on my first year as chair of the Wells Fargo Board of Directors, I am encouraged by the progress the company and our board have made as we build a better Wells Fargo for the future.

Before I talk about the board, I’d like to recognize the tireless efforts of our management team. Tim Sloan became CEO just over two years ago, and since then, with the full support of the board, he has been driving transformational change at the company. As CEO, Tim’s first priority was to initiate an extensive review to identify, understand, and resolve the problems of the past; to provide appropriate remediation to customers who were harmed; and to be transparent about our progress. We discovered a variety of issues, and even though the specific causes may have been different, some common themes emerged, such as the company’s history of running businesses individually and the decentralized nature of certain control functions. I believe this review was necessary to help us serve our customers better. In the past two years, we have centralized many aspects of our organizational structure, strengthened risk management, and improved governance practices and oversight. Going forward, we believe maintaining a holistic view of the company and focusing on operational excellence will result in continued positive change.

Organizationally, Tim has pulled together a strong management team that blends Wells Fargo veterans with experienced talent from elsewhere. Three of his direct reports are from outside the company, and two more — the company’s new head of Technology and chief auditor — will join Wells Fargo in April. Most of his other direct reports are in new or expanded roles.

Together, the leadership team is executing plans to streamline the company’s operating structure, better define roles and responsibilities, fill key positions, enhance the way we serve customers, strengthen risk and compliance measures, and instill our Vision, Values & Goals uniformly into the culture of Wells Fargo. In addition, the management team has redesigned the strategy, leadership, and incentive structure of the retail bank and the Wells Fargo Auto business to align with a more forward-looking consumer approach. One important early indicator of the success of these efforts is that “Customer Loyalty” and “Overall Satisfaction with Most Recent Visit” Community Bank branch survey scores reached 24-month highs in December 2018. At the same time, voluntary team member attrition in 2018 improved to its lowest level in six years.

Early in 2018, we agreed to a consent order with the Board of Governors of the Federal Reserve System and consent orders with the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau. To make sure we are meeting our commitments under the consent orders, the board and senior management are engaged in regular dialogue with our regulators. Clear communication is necessary so that the comprehensive changes we are making across the company will sufficiently strengthen our governance and oversight, as well as operational and compliance risk management. Although we are devoting a significant amount of resources to these efforts, we also have been delivering on our ongoing cost-reduction initiatives. Expense savings from simplifying and centralizing operations help fund our investments in areas such as risk management and technology.

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We continue to have constructive dialogue with the Federal Reserve on an ongoing basis to clarify expectations, receive feedback, and assess progress under the consent order, and we are now planning to operate under the asset cap through the end of 2019. Making the changes necessary to ensure we meet regulatory expectations remains a top priority, as is continuing to serve our customers and help them succeed financially.

Our Board of Directors The board operates very differently today than it did a year ago. Following our independent board investigation into retail sales practices and our 2017 board self-evaluation, we identified several areas in which we could enhance board oversight. As a result, we added more directors with expertise in financial services; adjusted committee structures, charters, and membership; enhanced agenda planning; and worked with management to better focus materials provided to the board. Mary Jo White, a senior partner at the law firm of Debevoise & Plimpton LLP and former chair of the Securities and Exchange Commission, was engaged by the board to facilitate its 2017 self-evaluation and work with the board on its 2018 self-evaluation to help assess our progress. Regular self-assessment provides us a mechanism for continuous improvement.

With 13 directors, our board is smaller than in the recent past. More than half of the current directors joined the board in 2017 or later. These new directors came ready to work and began to contribute immediately. The new directors have brought important experience in several areas, including financial services, other highly regulated industries, and consumer brand management. With board turnover, we have also refreshed our board committee leadership. Since September 2017, six of seven standing board committees have new committee chairs. Today, the average tenure of our independent directors is less than four years. Even as the board and its committees have experienced much change, we remain focused on responding to stakeholders, enhancing oversight, and creating long-term value for shareholders.

In January 2019, Wayne Hewett joined our board. Throughout his career as a CEO and senior executive, Wayne has had a record of success managing strategic priorities in complex business environments. His background as an industrial engineer and experience with datadriven process improvement methodologies will be especially valuable as we focus on operational excellence. Karen Peetz will retire from the board at our Annual Meeting of Shareholders in April 2019. Karen has been effective at framing risk management imperatives and insisting on individual accountability, especially in her role as chair of the Risk Committee. Since Karen joined the Risk Committee, we have brought on to our board and Risk Committee additional expertise in risk management of financial institutions. By announcing her retirement decision early, Karen has again demonstrated her commitment to responsible governance by ensuring a smooth transition of Risk Committee chair to Maria Morris, who will continue the work Karen started.

OVERSIGHT Our board oversight in 2018 focused heavily on identifying, understanding, and resolving issues within the company, including concerns identified by our regulators. We are also looking to the future. In his letter to shareholders, Tim details management strategies to achieve our six company goals of becoming the financial services leader in customer service and advice, team member engagement, innovation, risk management, corporate citizenship, and shareholder value. Going forward, board oversight of those

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goals will emphasize the following:

Meeting regulatory expectations. We recognize the importance of fully satisfying regulatory expectations. We are specifically focused on satisfying the requirements of the company’s outstanding consent orders. But more broadly, we are enhancing our risk and reporting systems to meet the heightened regulatory expectations for systemically important financial institutions and our own goal of industry leadership in risk management. We are engaging in frequent and open communication with our regulators about our progress.

Enhancing risk management. Wells Fargo has been and remains an industry leader in credit, market, and liquidity risk management. Over the years, the company has demonstrated an ability to manage through difficult economic conditions, including the 2008 financial crisis, but management of compliance and operational risks needed improvement. We have new leadership in the chief risk officer, chief compliance officer, head of Regulatory Relations, and chief operational risk officer roles. They have developed and are busy implementing plans to continue building our operational and compliance risk management systems to a level that matches our business, structure, and strategies. These plans include enhancing management-level governance committee structures, oversight, monitoring and controls, and escalation processes and procedures. Our objective is to build an industry-leading risk management program.

Operational excellence. Many of our past operational risk problems stemmed from weaknesses in underlying operations. In 2018, management launched a project to inventory and map all our business processes. While identifying risk areas will improve our control testing and monitoring functions, reducing the number and complexity of our business processes also offers the potential for improving the efficiency and effectiveness of core operations. We expect this work to improve the customer and team member experience, reduce operating costs, and enhance risk management.

Oversight of culture and human capital management. We continue to assess and shape the company’s culture, with an emphasis on such areas as ethics, training and development, and diversity and inclusion. One of the guiding values of Wells Fargo is “people as a competitive advantage.” We expect to devote a substantial amount of board attention to talent management strategies, including plans to attract, retain, reward, develop, and care for the very best people available. We recognize the importance of rewarding outstanding performance and holding team members accountable.

Technology. New generations of customers and team members expect technology to work seamlessly and intuitively. Thoughtful use of emerging technologies can enable quantum leaps in innovation and efficiency. At the same time, cyber risk is at an all-time high. We want to make sure all our systems operate on up-to-date platforms, are able to process and protect massive amounts of data, and contribute to our vision of operational excellence and leadership in innovation.

We have already made progress in each of these areas, and we will continue to focus on them in 2019.

Stakeholder Interaction For the past several years, our independent directors have participated in a shareholder engagement program to help us better understand our shareholders’ views on key corporate governance and other topics. The candid feedback of our shareholders helps us define priorities, assess progress, and enhance

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our corporate governance practices. In 2018, I met with shareholders representing more than 35 percent of our company’s common stock to discuss our governance approach.

Our board is also focused on corporate citizenship, which is overseen by the board’s Corporate Responsibility Committee. The committee reviews environmental and social governance practices and policies. Following our 2018 Annual Meeting of Shareholders, Corporate Responsibility Committee members met with members of our external Stakeholder Advisory Council to seek feedback and insights on current and emerging issues important to them. Tim and I continued to meet with the council during the year to discuss such varied topics as mortgage lending, services for unbanked or underbanked consumers, our efforts to help customers avoid and reduce overdraft fees, environmental commitments, human rights, and reputational risk issues.

One of our most significant responses to shareholder feedback was the publication of a Business Standards Report on our website in early 2019. The report was the culmination of engagement with a group of stakeholders led by the Interfaith Center on Corporate Responsibility, which requested the report. The report discusses our business practices and the many fundamental changes we have made — and continue to make — as we transform our company. The report also details what we have learned and what we have changed as we work to improve the company and rebuild trust. I encourage you to read it.

LONG-TERM SHAREHOLDER VALUE Over the past few years, management and the board have devoted a substantial amount of time and attention to the problems we have found in our company. Finding, fixing, and atoning for those problems is necessary to build our future on a strong foundation and is required to meet the expectations of our regulators and regain the trust of our customers, team members, and the public. Through it all, we have also delivered solid financial performance. The company earned $22.4 billion in 2018, or $4.28 per diluted common share, the highest earnings per share in the company’s history. Our ability to sustain solid financial performance in the face of our recent challenges is a testament to the fi nancial durability provided by our core franchise and diversified business model.

Our capital levels are well in excess of regulatory minimums. As part of the company’s goal of delivering long-term shareholder value, we’re committed to returning capital to shareholders when appropriate. During 2018 we returned a record $25.8 billion in capital to shareholders through common stock dividends and net share repurchases, representing a 78 percent increase from 2017. In January 2019, we increased the quarterly common stock dividend from 43 cents to 45 cents per share. We do not take our strengths for granted. We intend to continue to strengthen risk management, streamline and simplify operations, and innovate responsibly so we can build on our strengths. The goal of all these efforts is to become even more customerfocused, innovative, and better positioned for the future — creating long-term value for our shareholders.

IN APPRECIATION On behalf of the directors of your company, thank you for choosing to invest in Wells Fargo and for your continued faith in the future of our company. Even though much work remains, we believe we are on the right path and are making real progress. We are confident we have a CEO and management team with the vision and strategy to achieve our goals — and to fix the problems of the past while building a strong foundation for the future. The changes the company is making are showing positive signs, and we are

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confident in our success. I encourage you to carefully review this report, our 2019 proxy statement, and the other materials the company makes available to shareholders to better understand the opportunities and challenges ahead and Wells Fargo’s work to execute its strategy. We are steadfast in our commitment to building and protecting the long-term value of the company.

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Locations And Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office

Wells Fargo & Company 420 Montgomery Street San Francisco California San Francisco California USA Phone:1 866 8785865 www.wellsfargo.com

Other Locations and Subsidiaries

Wells Capital Management Incorporated 10Th Floor 525 Market Street San Francisco California San Francisco California USA Phone:1 415 3968000 www.wellscap.com

Wells Fargo Equipment Finance, Inc 733 Marquette Ave., Ste. 700 Minneapolis Minnesota Minneapolis Minnesota USA Phone:1 612 667 Fax:1 612 667

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