Wells Fargo Issues Statement Regarding the Federal Reserve’s Stress Test Results and Intention to Raise Dividend by 14%

Rhea-AI Summary

Wells Fargo (NYSE: WFC) has completed the 2024 Comprehensive Capital Analysis and Review (CCAR) stress test process. The company expects its stress capital buffer (SCB) to be 3.8%, with the Federal Reserve Board publishing the final SCB by August 31, 2024.

Wells Fargo plans to increase its Q3 2024 dividend by 14% to $0.40 per share, pending board approval in July. The company also has the capacity to repurchase common stock over the next four quarters, subject to market conditions and regulatory requirements.

CEO Charlie Scharf emphasized the bank's strong capital position and commitment to returning excess capital to shareholders while serving customer needs.

Positive

• Wells Fargo plans to increase its dividend by 14% to $0.40 per share in Q3 2024.
• The company has completed the 2024 CCAR stress test process, indicating a strong capital position.
• Wells Fargo has the capacity to repurchase common stock over the next four quarters.

Negative

• The final SCB of 3.8% indicates incremental capital requirements, affecting available operational funds.

SAN FRANCISCO--(BUSINESS WIRE)-- Wells Fargo & Company (NYSE: WFC) today announced that it has completed the 2024 Comprehensive Capital Analysis and Review (CCAR) stress test process. The Company expects its stress capital buffer (SCB) to be 3.8%, which represents a percentage amount of incremental capital the Company must hold above its minimum regulatory capital requirements. The Federal Reserve Board (FRB) has indicated that it will publish the Company’s final SCB by August 31, 2024.

Facade of a Wells Fargo bank branch in Manhattan (Photo: Wells Fargo)

The Company expects to increase its third quarter 2024 common stock dividend by 14 percent to $0.40 per share from $0.35 per share, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting in July. Additionally, over the four-quarter period beginning third quarter 2024 through second quarter 2025, the Company has capacity to repurchase common stock, which will be routinely assessed as part of the Company’s internal capital adequacy framework that considers current market conditions, potential changes to regulatory capital requirements, and other risk factors.

“Wells Fargo continues to have a strong capital position, reflecting the strength of our franchise and the investments we’ve made to better serve our customers,” said CEO Charlie Scharf. “We remain focused on using our capital strength to serve our customers’ financial needs, while continuing to prudently return excess capital to our shareholders.”

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 47 on Fortune’s 2023 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com

LinkedIn: https://www.linkedin.com/company/wellsfargo

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 repurchases. Because forward-looking statements are based on our current expectations and assumptions regarding the future, they are subject to inherent risks and uncertainties. Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. Actual capital levels and capital actions may vary materially from expectations due to a number of factors, including those described in our reports filed with the Securities and Exchange Commission and available on its website 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, the impact to our balance sheet of expected customer activity, our capital requirements and long-term targeted capital structure, the results of supervisory stress tests, market conditions (including the trading price of our stock), regulatory and legal considerations, including regulatory requirements under the Federal Reserve Board’s capital plan rule, and other factors deemed relevant by the Company, and may be subject to regulatory approval or conditions.

News Release Category: WF-CF

View source version on businesswire.com: https://www.businesswire.com/news/home/20240628851200/en/

Media

Erin Knight, 843-307-8511

Erin.Knight@wellsfargo.com

Investor Relations

John Campbell, 415-396-0523

john.m.campbell@wellsfargo.com

Source: Wells Fargo & Company

FAQ

What is Wells Fargo's expected stress capital buffer (SCB) for 2024?

Wells Fargo expects its stress capital buffer (SCB) to be 3.8%, pending final publication by the Federal Reserve Board by August 31, 2024.

How much is Wells Fargo increasing its Q3 2024 dividend?

Wells Fargo plans to increase its Q3 2024 dividend by 14%, raising it to $0.40 per share, pending board approval in July.

What is Wells Fargo's plan for stock repurchase?

Wells Fargo has the capacity to repurchase common stock over the four-quarter period from Q3 2024 through Q2 2025, subject to market conditions and regulatory requirements.

Who is Wells Fargo's CEO?

Wells Fargo's CEO is Charlie Scharf.

When will the Federal Reserve Board publish Wells Fargo's final SCB?

The Federal Reserve Board will publish Wells Fargo's final SCB by August 31, 2024.