Wells Fargo & Company (NYSE:WFC) Q1 2015 Earnings Conference Call - Final Transcript

Apr 14, 2015 • 10:00 am ET


Wells Fargo & Company (NYSE:WFC) Q1 2015 Earnings Conference Call - Final Transcript


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At this time, I would like to welcome everyone to the Wells Fargo's First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the call over to Jim Rowe, Director of Investor Relations. Mr. Rowe, you may begin your conference.

Jim Rowe

Thank you, Regina, and good morning, everyone. Thank you for joining our call today, where our Chairman and CEO, John Stumpf; and our CFO, John Shrewsberry will discuss first quarter results and answer your questions.

Before we get started, I would like to remind you that our first quarter earnings release and quarterly supplement are available on our website at wellsfargo.com. I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including the Form 8-K filed today containing our earnings release and quarterly supplement. Information about any non-GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can also be found in our SEC filings, in the earnings release and in the quarterly supplement available on our website.

I will now turn the call over to our Chairman and CEO, John Stumpf.

John Stumpf

Thank you, Jim. Good morning, and thank you for joining us today. We earned $5.8 billion in the first quarter, which reflected the benefit of our diversified business model and our continued focus on the real economy. By building relationships with our existing customers and successfully generating new relationships during the past year, we were able to grow loans and deposits and increase our revenue. Our capital levels remained strong and we continue to focus on rewarding our shareholders by increasing our dividend and reducing our shares outstanding.

Let me highlight our growth during the quarter compared with a year ago. We generated $21.3 billion of revenue, up 3% from a year ago with growth in both net interest income and non-interest income. We had broad-based loan growth with our core loan portfolio increasing by $54.2 billion or 7%. Our deposit franchise continued to generate strong customer and balanced growth with total deposits reaching a record $1.2 trillion, up $102.1 billion or 9% and we grew the number of primary consumer checking customers by 5.7%. Our credit performance continued to be very strong with net charge-offs down $117 million and our net charge-off ratio declined to 33 basis points.

Our financial performance resulted in strong capital generation and returning capital to our shareholders remains a priority. Our net payout ratio was 61% in the first quarter. We're extremely pleased that our 2015 capital plan allows us to increase our quarterly dividend by 7% to $0.375 per common share for the second quarter of this year, of course, subject to Board approval. Our ability to increase our dividend every year since 2011 demonstrates