SAN FRANCISCO–(BUSINESS WIRE)–Wells Fargo & Company (NYSE: WFC) today announced that the Federal Reserve Board has not objected to the Company’s 2019 Capital Plan under the recently concluded Comprehensive Capital Analysis and Review (CCAR) of the nation’s largest banks.
“Today’s positive CCAR result demonstrates the strength of Wells Fargo’s diversified business model, our sound financial risk management practices, and our strong capital position,” said Interim CEO and President Allen Parker. “We continue to return excess capital responsibly to shareholders and remain committed to our goal to be the financial services leader in creating long-term shareholder value.”
Wells Fargo’s 2019 Capital Plan covers the four-quarter period from the third quarter of 2019 through the second quarter of 2020. The plan enables the Company to continue prudently returning excess capital to shareholders, relative to its internal target – an opportunity resulting from capital built in recent years attributable to continued stable earnings and a lower level of risk-weighted assets. The Company’s internal capital target is established in connection with a rigorous risk-based capital adequacy assessment process that includes comprehensive current and forward-looking evaluations of the Company’s capital position relative to its risk profile, the Company’s operating environment, and pending regulatory capital rule making.
As part of the plan, the Company expects to increase its third quarter 2019 common stock dividend to $0.51 per share from $0.45 per share, subject to approval by the Company’s Board of Directors. The plan also includes common stock repurchases1 of up to $23.1 billion for the four-quarter period (third quarter 2019 through second quarter 2020). In addition, the Company may consider redemptions or repurchases of other capital securities as part of the plan.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,700 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 33 countries and territories to support customers who conduct business in the global economy. With approximately 262,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2019 rankings of America’s largest corporations.
Cautionary Statement about Forward-Looking Statements
This news release contains forward-looking statements about our future regulatory capital levels and possible future capital actions, including common stock dividends and common stock repurchases. Forward-looking statements speak only as of the date made, and we do not undertake to update them. Actual capital levels and capital actions may vary materially from the expectations described in this news release due to a number of factors, including those described in our reports filed with the Securities and Exchange Commission and available at www.sec.gov. The amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements (including under Basel capital standards), common stock issuance requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company’s Board of Directors, and may be subject to regulatory approval or conditions.
1 Gross basis: Total common stock repurchases before issuance amounts to employee benefit plans.
Peter Gilchrist, 704-715-3213
John Campbell, 415-396-0523