Wells Fargo (WFC) 2nd Quarter 2014 Earnings Conference Call Notes

– $5.7B in profit

– Continued Growth, up 3% from 1 year ago based on diluted shares

– Expenses reduced from 1 year ago

– Increased dividend

– Reduced outstanding share count via buybacks

– Net $3.6B from $1.6B year ago in returned money to shareholders

– Net interest income grew from 1 year ago

– Fee income growth grew

– Tax rate was significantly higher than 1st quarter, so new income was actually better on a comparable basis during this 2nd quarter

– Deposit growth grew and on a ROA basis you would logically have a reduction based on the increase – this is a perfectly acceptable reduction in margin as this should improve as time goes on

– Continued rock solid efficiency ratio of 57.9% (remember 55 is better than 59) and current best ratio with respect to size compared to others – see JPM/BAC/C

– Credit losses down

– Continued planned share buybacks for remainder 2014

– Testing new urban (neighborhood) stores – saved dollars allows investment elsewhere

– Future mortgage servicing expenses coming down – less defaults/foreclosures and just general efficiency improvements

– More opportunity in card program, which is highest interest rates

– As rates go up depositors will stay instead of chasing better rates because it’s tough to get out of services provided since customers use so many, and same goes for businesses

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