Overview

• US banking giant's Q2 revenue rose yr/yr, beating analyst expectations

• EPS for Q2 beat analyst expectations

• Company repurchased $3 bln in common stock during the quarter

Outlook

• Wells Fargo expects to increase Q3 common stock dividend by 11% to $0.50 per share

Result Drivers

• BROAD-BASED REVENUE GROWTH - Co said all operating segments generated strong revenue growth, led by Corporate and Investment Banking (up 16%) and Wealth and Investment Management (up 13%)

• EXPENSE DISCIPLINE - Co said continued expense discipline drove positive operating leverage, with total expenses up 2% and non-revenue related expenses lower yr/yr

• CREDIT QUALITY - Co said consumer and commercial credit quality remained strong, with net loan charge-offs declining 10 basis points yr/yr

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$22.62 bln	$21.84 bln (16 Analysts)
Q2 EPS	Beat	$2	$1.72 (17 Analysts)
Q2 Net Income		$6.41 bln
Q2 Net Interest Income	Slight Miss*	$12.32 bln	$12.37 bln (10 Analysts)
Q2 CET1 Capital Ratio		10.30%
Q2 Credit Loss Provision		$914 mln
Q2 ROE		15.00%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Wells Fargo & Co is $100.50, about 14.6% above its July 13 closing price of $87.67

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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