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Wells Fargo (NYSE:WFC) ROE %

: 7.98% (As of Sep. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Wells Fargo's annualized net income for the quarter that ended in Sep. 2022 was $14,112 Mil. Wells Fargo's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was $176,861 Mil. Therefore, Wells Fargo's annualized ROE % for the quarter that ended in Sep. 2022 was 7.98%.

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: 1.82   Med: 11.38   Max: 13.35
Current: 7.32

During the past 13 years, Wells Fargo's highest ROE % was 13.35%. The lowest was 1.82%. And the median was 11.38%.

WFC's ROE % is ranked worse than
70.78% of 1444 companies
in the Banks industry
Industry Median: 10.42 vs WFC: 7.32

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 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.11 10.29 1.82 11.58 7.17

Wells Fargo Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 12.21 8.01 6.99 7.98 6.43

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 in comparison to its industry or sector. The grey bar indicates the ROE %'s extreme value range as defined by GuruFocus.



Wells Fargo ROE % Calculation

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

ROE %=Net Income (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=21548/( (184680+187606)/ 2 )
=21548/186143
=11.58 %

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

ROE %=Net Income (Q: Sep. 2022 )/( (Total Stockholders Equity (Q: Jun. 2022 )+Total Stockholders Equity (Q: Sep. 2022 ))/ count )
=14112/( (177532+176189)/ 2 )
=14112/176860.5
=7.98 %

* 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 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 data used here is four times the quarterly (Sep. 2022) net income 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: Sep. 2022 )
=Net Income/Total Stockholders Equity
=14112/176860.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(14112 / 78020)*(78020 / 1879443.5)*(1879443.5 / 176860.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=18.09 %*0.0415*10.6267
=ROA %*Equity Multiplier
=0.75 %*10.6267
=7.98 %

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: Sep. 2022 )
=Net Income/Total Stockholders Equity
=14112/176860.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (14112 / 17576) * (17576 / 78020) * (78020 / 1879443.5) * (1879443.5 / 176860.5)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.8029 * 22.53 % * 0.0415 * 10.6267
=7.98 %

Note: The net income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income 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 (NYSE:WFC) 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
Kristy Fercho officer: Sr. Executive Vice President 5151 CORPORATE DRIVE, TROY MI 48098
Richard K Davis director 800 NICOLLET MALL, MINNEAPOLIS MN 55402
Felicia F Norwood director 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Cecelia Morken director 26025 MUREAU ROAD, CALABASAS CA 91302
Bei Ling officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Kyle G Hranicky officer: Sr. Executive Vice President 1000 LOUISIANA STREET, HOUSTON TX 77002
Kleber Santos officer: Sr. Executive Vice President 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ather Iii Williams officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Michael P. Santomassimo officer: Sr. EVP & CFO 225 LIBERTY STREET, NEW YORK NY 10286
Mark A Chancy director 303 PEACHTREE ST., 30TH FLOOR, ATLANTA GA 30308
Lester Owens officer: Sr. Executive Vice President 240 GREENWICH STREET, NEW YORK NY 10286
Barry Sommers officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Michael S Weinbach officer: Sr. Executive Vice President 30 HUDSON YARDS, NEW YORK NY 10001
Steven D Black director C/O JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Muneera S Carr officer: EVP, CAO & Controller 1717 MAIN STREET, MAIL CODE 6500, DALLAS TX 75201

Wells Fargo (NYSE:WFC) Headlines

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