Wells Fargo & Company (NYSE:WFC.PRW) Q4 2016 Earnings Conference Call - Final Transcript

Jan 13, 2017 • 11:30 am ET


Wells Fargo & Company (NYSE:WFC.PRW) Q4 2016 Earnings Conference Call - Final Transcript


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Good morning. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Wells Fargo fourth 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 President and CEO, Tim Sloan and our CFO, John Shrewsberry, will discuss fourth quarter results and answer your questions. This call is being recorded.

Before we get started, I would like to remind you that our fourth quarter earnings release and quarterly supplement are available on our Web site 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 Web site.

I will now turn the call over to our President and CEO, Tim Sloan.

Tim Sloan

Thank you Jim. Good morning and Happy New Year. Thank you all for joining us today, I know it's been a very busy morning for most of you. Our results in 2016 demonstrated the benefit of our diversified business model with loan and deposit balances at an all-time high while we maintained a strong risk discipline.

While the last few months of the year certainly were challenging, I couldn't be more pleased with the hard work and progress of our team -- that our team made to rebuild trust which I'll highlight shortly. But first I want to summarize our financial performance for the past year. We generated earning of $21.9 billion and EPS of $3.99 a share. We grew revenue by 3% including 5% growth in net interest income. Average loans grew $64.5 billion, up 7% and average deposits increased $56.5 billion, up 5%.

Wealth and investment management total client assets reached a record high of $1.7 trillion, up 7%. Our credit results continued to be strong with net charge-off rate of 37 basis points. We returned $12.5 billion to our shareholders through common stock dividends and net share repurchases and we reduced our common shares outstanding by 76 million shares. On Page 3 we describe the progress we've made on our retail banking sales practices remediation plan, including contacting our retail and small business customers and encouraging anyone who has concerns to contact us.

We established a sales practice consent order program office reporting directly to our