Common Equity Tier 1 (fully phased-in) is a preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules. Finalized data will be reported in Wells Fargo’s 2016 Annual Report on Form 10-K. Additional information regarding our Common Equity Tier 1 ratio is included on page 36 of the Fourth Quarter Earnings Release.
Data as of November 2016, comparisons with November 2015.
Primarily includes retail banking, consumer lending, small business and business banking customers.
Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. Effective fourth quarter 2016, we realigned some personnel and business activities from Wholesale Banking to Community Banking, as a result of the formation of the new Payments, Virtual Solutions, and Innovation Group. Results for these operating segments reflect the shift prospectively from November 1, 2016.
Includes the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.
For complete information on fourth quarter 2016 earnings, please visit Quarterly Earnings. This Investment Profile contains forward-looking statements about our future financial performance. For information that could cause actual results to differ materially from expectations, please review the Forward-Looking Statements discussion on pages 12-13 of the Fourth Quarter Earnings Release.
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