Wells Fargo Reports February Retail Banking Customer Activity

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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