Wells Fargo & Company (NYSE:WFC) today reported Retail
Banking customer activity data for February 2017. Tim Sloan,
President and Chief Executive Officer noted, “Today’s update on
Retail Banking trends is part of our ongoing commitment to
transparency. In February, we were pleased to see that in general
our existing customers continued to actively use their accounts and
valued their relationships with Wells Fargo. We remain focused on
meeting our customers’ financial needs by providing great service
and quality products, and we’re pleased that our customer
experience survey scores increased for the fourth consecutive
month. We will provide our next update on customer activity trends
in April.”
Mary Mack, head of Community Banking, added, “After factoring in
day count differences, February trends were generally similar to
January’s and were within our expectations. It will take time for
us to work through the changes we are making in our business, but
we remain focused on strengthening our relationships with existing
customers and building new ones with potential customers.”
Key Takeaways
Linked month (LM) and year-over-year (YoY) trends were impacted
by February 2017 having fewer days than both January 2017 and
February 2016.
Customer Interactions
- Total branch interactions down 1% LM,
and down 11% YoY
Deposit Balances and Accounts
- Average consumer and small business
deposit balances down modestly LM, but up 6% YoY
- Consumer checking account opens down 3%
LM, and down 0.3 million, or 43%, YoY
- Customer-initiated consumer checking
account closures down 10% LM and 11% YoY
- Primary consumer checking customers of
23.5 million, up modestly LM, and up 1.9% YoY
Debit and Credit Cards
- Point-of-sale debit card transactions
down 2% LM, but up modestly YoY
- Consumer credit card purchase volume
down 7% LM, but up 3% YoY
- Consumer credit card balances
outstanding down 2% LM, but up 8% YoY
- New consumer credit card applications
down 4% LM, and down 0.2 million, or 55%, YoY
- Point-of-sale active consumer credit
card accounts of 7.5 million, down 2% LM, but up 4% YoY
Customer Experience Surveys
- Customer loyalty scores up for the
fourth consecutive month, but down YoY
- Survey results of overall satisfaction
with most recent visit of 77.5% in February 2017, up from 77.2% in
January 2017, but down slightly from 77.8% in February 2016
Feb 2017
Average per Day View change from: Feb 2017
change from: (in millions, unless otherwise noted)
Feb
Jan
Feb
Jan
Feb
Jan Feb 2017 2017
2016
2017
2016
2017 2016 Customer Interactions (1) Total
Branch Interactions 48.3 48.9 54.3 -1 % -11 % 4% -6%
(9)
Teller Transactions 45.5 46.0 50.7 -1 % -10 % 4% -6%
(9)
Branch Banker Interactions 2.8 2.9 3.6 -4 % -21 % 1% -17%
(9)
Total Digital (Online and Mobile) Secure Sessions 452.1 469.9 448.2
-4 % 1 % 7% 4%
(10)
Total Digital (Online and Mobile) Active Customers (2) 27.9 27.6
27.2 1 % 3 % --- --- Consumer Checking Account Opens 0.3 0.3 0.6 -3
% -43 % 2% -40%
(9)
Consumer Checking Account Customer-Initiated Closures (3) 0.2 0.2
0.2 -10 % -11 % -5% -7%
(9)
Deposit Balances and Accounts
Consumer and Small Business Banking
Deposits
(period end, $ in billions) (4)
$ 761.4 $ 750.4 $ 719.8 1 % 6 % --- --- Consumer and Small Business
Banking Deposits
(average, $ in billions) (4)
$ 753.0 $ 754.0 $ 712.3 0 % 6 % --- --- Primary Consumer Checking
Customers (5) 23.5 23.4 23.0 0 % 2 % --- --- Primary Consumer
Checking Customers YoY Growth (5) 1.9 % 2.6 % 5.0 % --- ---
Debit Cards (Consumer and Business) Point-of-Sale Active
Cards (6) 25.5 25.7 25.8 -1 % -1 % --- --- Point-of-Sale
Transactions 619.1 630.5 618.3 -2 % 0 % 9% 4%
(10)
Consumer Credit Cards (7) Point-of-Sale Active
Accounts (8) 7.5 7.7 7.2 -2 % 4 % --- --- Applications 0.2 0.2 0.4
-4 % -55 % 6% -53%
(10)
Balances (period end, $ in billions) $ 27.1 $ 27.6 $ 25.1 -2 % 8 %
--- --- Purchase Volume ($ in billions) $ 5.0 $ 5.4 $ 4.9 -7 % 3 %
3% 6%
(10)
Customer Experience Survey Scores with Branch
Customer Loyalty 57.6 % 56.9 % 62.1 % --- --- Overall Satisfaction
with Most Recent Visit 77.5 % 77.2 % 77.8 % --- --- Business
Days 19 20 20 Calendar Days 28 31 29 Percentage changes are
calculated using whole numbers. If the % change were based on the
rounded amounts presented, it would produce a different result for
Branch Banker Interactions, Consumer Checking Account Opens,
Consumer Checking Account Customer-Initiated Closures, Consumer
Credit Card Point-of-Sale Active Accounts, Consumer Credit Card
Applications and Consumer Credit Card Purchase Volume, but all
differences are attributable to rounding. (1) A customer
communication or transaction qualifies as a customer traffic
interaction, which is consistent with the definition used by
management for each customer channel presented. Preparation of
customer traffic interaction metrics requires the application of
interpretive judgement for each communication or transaction.
Management uses these metrics to monitor customer traffic trends
within the Company’s Retail Banking business. (2) Primarily
includes retail banking, consumer lending, small business and
business banking customers. (3) Does not include accounts closed by
the bank. (4) Period-end and average deposits for February 2017
included $1.9 billion and $2.1 billion, respectively, and January
2017 included $1.8 billion and $2.1 billion, respectively, of
deposits related to our new Payments, Virtual Solutions, and
Innovation Group that involved realignment in fourth quarter 2016
of some personnel and business activities from Wholesale Banking to
the Community Banking operating segment. (5) Customers who actively
use their checking account with transactions such as debit card
purchases, online bill payments, and direct deposit. (6) Active
Debit cards having at least one POS transaction during the month.
(7) Credit card metrics shown in the table are for general purpose
credit card only excluding co-branded cards. (8) Active Credit Card
Accounts having at least one POS transaction, including POS
reversal, during the month. (9) The average per day view
calculation is computed by taking the total amount for each month
and dividing it by the number of business days in that month since
the activity primarily occurs on business days. The percentage
change is then calculated by comparing this average per day amount
for each of the periods shown. (10) The average per day view
calculation is computed by taking the total amount for each month
and dividing it by the number of calendar days in that month. The
percentage change is then calculated by comparing this average per
day amount for each of the periods shown.
Conference Call
The Company will host a live conference call on Monday, March
20, at 9:30 a.m. PT (12:30 p.m. ET). You may participate by dialing
866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The
call will also be available online at
https://www.wellsfargo.com/about/investor-relations/events/ and
https://engage.vevent.com/rt/wells_fargo_ao~83691984.
A replay of the conference call will be available beginning at
11:30 a.m. PT (2:30 p.m. ET) on March 20 through Friday, March 31.
Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID 83691984#. The replay will
also be available online at
https://www.wellsfargo.com/about/investor-relations/events/ and
https://engage.vevent.com/rt/wells_fargo_ao~83691984.
Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements about our
future financial performance and business. 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. For information about factors that could
cause actual results to differ materially from our expectations,
refer to our reports filed with the Securities and Exchange
Commission, including the discussion under “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2016 as
filed with the Securities and Exchange Commission and available on
its website at www.sec.gov.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Founded in 1852 and headquartered in San Francisco, Wells
Fargo provides banking, insurance, investments, mortgage, and
consumer and commercial finance through more than 8,600 locations,
13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and
has offices in 42 countries and territories to support customers
who conduct business in the global economy. With approximately
269,000 team members, Wells Fargo serves one in three households in
the United States. Wells Fargo & Company was ranked No. 27 on
Fortune’s 2016 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy our customers’ financial needs and
help them succeed financially.
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version on businesswire.com: http://www.businesswire.com/news/home/20170320005416/en/
Wells Fargo & CompanyMediaAncel Martinez,
415-222-3858InvestorsJim Rowe, 415-396-8216
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