WFC 2Q12 Conference Call Highlights

Quotes from 2Q12 WFC Earnings Call

• organic growth in both commercial and consumer portfolios.

• average core deposits up $10.1 billion from the first quarter, up $73.2 billion or 9% from a year ago. 

• net interest margin was unchanged at 3.91%

• established an efficiency ratio target of 55% to 59%

• charge-offs were...1.15% of average loans, down...$3.2 billion or 59% [from 4Q09 peak].

• Nonperforming assets were down $1.8 billion from the first quarter, down 11% from a year ago. NPAs were 3.21% of total loans in the second quarter, the lowest level since 2009.

• Our estimated Tier 1 common equity ratio under the latest Basel III...7.78% for the second quarter

• Return on assets was 1.41%, the highest in 16 quarters and within our target range of 1.3% to 1.6% that we provided on Investor Day. Our ROE grew to 12.86%, also within our target range of 12% to 15%

• I think the market continues to provide opportunities for firms that have the liquidity and the capital to [make acquisitions]. Whether or not we'll be successful, I certainly can't promise you because we turn down more than we pursue.

• We're not taking any significant duration risk or any significant credit risk [in the securities portfolio]. This is still a very high-quality portfolio and the duration is relatively short.

• Random quote from Stumpf that typifies WFC culture: But, Mike, we will not stretch for something. If -- I mean, that we -- it's just not in our culture to do that. So if we happen to have something that goes down one quarter, that's life.