Wells Fargo & Company (NYSE:WFC) Q1 2018 Earnings Conference Call - Final Transcript
Apr 13, 2018 • 10:00 am ET
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 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 John Campbell, Director of Investor Relations. Sir, you may begin the conference.
Thank you, Regina. Good morning. Thank you for joining our call today, where our CEO and President, Tim Sloan, and our CFO, John Shrewsbury will discuss preliminary first quarter results and answer your questions. This call is being recorded.
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 risk 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 CEO and President, Tim Sloan.
Thank you, John. Good morning, and thank you for joining us today, I know it's a busy morning for everyone. As we noted in our earnings release, our first quarter financial results are preliminary. These preliminary results are subject to change due to an ongoing discussions that we're having with the CFPB and OCC to resolve matters regarding our compliance risk management program and our past practices involving certain automobile collateral protection, insurance policies, and certain mortgage interest rate lock extensions, which the CFPB and the OCC have collectively offered to resolve for an aggregate of $1 billion in civil money penalties.
At this time, we're unable to predict the final resolution of the CFPB/OCC matter and cannot reasonably estimate our related loss contingency. Accordingly, the preliminary financial results we report today may need to be revised to reflect additional accruals for the CFPB/OCC matter when we file our final statements in our quarterly report on Form 10-Q with the SEC. It is important to note that these are not new matters.
Turning to our preliminary first quarter results, we earned $5.9 billion. Our results included continued strong credit performance, liquidity, and capital levels. We returned $4 billion to shareholders through common stock dividends and net share repurchases in the first quarter, up 30% from a year ago. There were a number of noteworthy items that impacted our results, which John will highlight later on the call. I want to focus my comments on the actions we took during the quarter to transform Wells Fargo