Wells Fargo Issues Statement Regarding the Federal Reserve’s Stress Test Results
June 30 2023 - 4:30PM
Business Wire
Wells Fargo & Company (NYSE: WFC) today announced that it
has completed the 2023 Comprehensive Capital Analysis and Review
(CCAR) stress test process. The Company expects its stress capital
buffer (SCB) to decrease to 2.9%, 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, 2023.
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Facade of a Wells Fargo bank branch in
Manhattan (Photo: Wells Fargo)
The Company expects to increase its third quarter 2023 common
stock dividend to $0.35 per share from $0.30 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 2023 through second quarter 2024,
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.
“This year’s CCAR stress test affirmed that Wells Fargo remains
in a strong capital position, reflecting the value of our franchise
and benefits of our operating model,” said CEO Charlie Scharf.
“This capital strength allows us 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,
proudly serves one in three U.S. households and more than 10% of
small businesses in the U.S., and is a leading middle market
banking provider in the U.S. 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. 41 on Fortune’s 2022
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 |
Twitter: @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 common share
repurchases. Because forward-looking statements are based on our
current expectations and assumptions regarding the future, they are
subject to inherent risks and uncertainties. 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 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,
market conditions, capital requirements (including under Basel
capital standards), common stock issuance requirements, applicable
law and regulations (including federal securities laws and federal
banking regulations), and other factors deemed relevant by the
Company’s Board of Directors, 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/20230630321124/en/
Media Beth Richek, 704-374-2545
Beth.Richek@wellsfargo.com
Investor Relations John Campbell, 415-396-0523
john.m.campbell@wellsfargo.com
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