GURUFOCUS.COM » STOCK LIST » USA » NYSE » Wells Fargo & Co (NYSE:WFC) » Definitions » ROE %
Switch to:

Wells Fargo ROE %

: 6.37% (As of Jun. 2022)
View and export this data going back to 1962. Start your Free Trial

ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Wells Fargo's annualized net income attributable to common stockholders for the quarter that ended in Jun. 2022 was $11,356 Mil. Wells Fargo's average Total Stockholders Equity over the quarter that ended in Jun. 2022 was $178,388 Mil. Therefore, Wells Fargo's annualized ROE % for the quarter that ended in Jun. 2022 was 6.37%.

The historical rank and industry rank for Wells Fargo's ROE % or its related term are showing as below:

WFC' s ROE % Range Over the Past 10 Years
Min: 0.96   Med: 10.63   Max: 12.75
Current: 8.92

During the past 13 years, Wells Fargo's highest ROE % was 12.75%. The lowest was 0.96%. And the median was 10.63%.

WFC's ROE % is ranked worse than
57.57% of 1459 companies
in the Banks industry
Industry Median: 9.81 vs WFC: 8.92

Wells Fargo ROE % Historical Data

The historical data trend for Wells Fargo's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Wells Fargo Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.11 10.26 9.45 0.96 10.88

Wells Fargo Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.14 10.07 11.62 7.40 6.37

Competitive Comparison

For the Banks - Diversified subindustry, Wells Fargo's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Wells Fargo ROE % Distribution

For the Banks industry and Financial Services sector, Wells Fargo's ROE % distribution charts can be found below:

* The bar in red indicates where Wells Fargo's ROE % falls into.



Wells Fargo ROE % Calculation

Wells Fargo's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=20256/( (184680+187606)/ 2 )
=20256/186143
=10.88 %

Wells Fargo's annualized ROE % for the quarter that ended in Jun. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Jun. 2022 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Jun. 2022 ))/ count )
=11356/( (179243+177532)/ 2 )
=11356/178387.5
=6.37 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Wells Fargo  (NYSE:WFC) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=12476/178387.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(12476 / 68112)*(68112 / 1910425.5)*(1910425.5 / 178387.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=18.32 %*0.0357*10.7094
=ROA %*Equity Multiplier
=0.65 %*10.7094
=6.99 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Jun. 2022 )
=Net Income/Total Stockholders Equity
=12476/178387.5
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (12476 / 14260) * (14260 / 0) * (0 / 68112) * (68112 / 1910425.5) * (1910425.5 / 178387.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8749 * N/A * 0 % * 0.0357 * 10.7094
=6.99 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Jun. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Wells Fargo ROE % Related Terms

Thank you for viewing the detailed overview of Wells Fargo's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Wells Fargo Business Description

Wells Fargo logo
Address
420 Montgomery Street, San Francisco, CA, USA, 94104
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company is split into four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.
Executives
Davis Richard K director 800 NICOLLET MALL MINNEAPOLIS MN 55402
Norwood Felicia F director 120 MONUMENT CIRCLE INDIANAPOLIS IN 46204
Morken Cecelia director 26025 MUREAU ROAD CALABASAS CA 91302
Ling Bei officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Hranicky Kyle G officer: Sr. Executive Vice President 1000 LOUISIANA STREET HOUSTON TX 77002
Santos Kleber officer: Sr. Executive Vice President 1680 CAPITAL ONE DRIVE MCLEAN VA 22102
Williams Ather Iii officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Santomassimo Michael P. officer: Sr. EVP & CFO 225 LIBERTY STREET NEW YORK NY 10286
Chancy Mark A director 303 PEACHTREE ST. 30TH FLOOR ATLANTA GA 30308
Owens Lester officer: Sr. Executive Vice President 240 GREENWICH STREET NEW YORK NY 10286
Sommers Barry officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Weinbach Michael S officer: Sr. Executive Vice President 30 HUDSON YARDS NEW YORK NY 10001
Black Steven D director C/O JPMORGAN CHASE & CO. 270 PARK AVENUE NEW YORK NY 10017
Carr Muneera S officer: EVP, CAO & Controller 1717 MAIN STREET MAIL CODE 6500 DALLAS TX 75201
Patterson Ellen R officer: Sr. EVP and General Counsel 30 HUDSON YARDS NEW YORK NY 10001

Wells Fargo Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)