Our revenue goal

Wells Fargo is a growth company that believes the key to the bottom line is the top line. The ability to grow profits consistently is based on sustainable revenue growth—growth driven by our ability to satisfy all of our customers’ fundamental financial needs year after year.

If we had to select only one goal, it would be revenue growth. It’s the most important measure of service, sales and customer satisfaction. It’s the vote our customers cast every day with their pocketbooks. When they rave about our service, they’ll give us more of their business, increasing revenue. They’ll refer new customers to us. They’ll stay with us for life.

We can’t control the economy, interest rates, the markets or world events. We focus on what we can control and what we can sustain long term: our core performance, our revenue growth. That’s our goal whether the road’s bumpy or smooth. Whether interest rates or unemployment are high or low. Whether the yield curve’s flat or steep. Whether the economy’s growing or contracting. What we can influence is our desire and ability to serve customers and make smart business decisions. That’s what propels our revenue growth.

Our financial goal

Wells Fargo is a safe and sound company in which our customers and shareholders can place their trust. We maintain and measure our conservative financial position by asset quality, capital levels, lack of complexity, diversity of revenue sources and sound accounting policies. We disperse risk by geography, loan type, industry segment and by building risk management into every aspect of our culture. We want to have a strong balance sheet, funded more by core deposits than virtually any of our competitors.

We measure our financial success by the financial success of our customers. To be financially successful, we want all our customers and team members to be financially educated and well prepared to make wise financial choices. Financial education is the gateway to economic self-sufficiency. We offer several tools and programs to make this happen, and many team members volunteer in classrooms and other forums across our communities. For example, in 2011 alone, more than 1,500 team members delivered 2,282 financial education lessons to 111,975 students and families during Teach Children to Save and Get Smart About Credit campaigns.

We also want all our team members to be well informed about our company—and know how our company makes money.

We grow revenue in two ways—interest income, and noninterest or fee income:
Make loans and investments + Interest income
We take prudent risks– Provision for loan loss/or charge-offs
We receive deposits and borrow money– Interest expense
Provide products and advice + Noninterest or fee income
We invest in our people– Salary/benefits expense
Our people need systems, space, computers– Noninterest expense
Uncle Sam gets his share– Tax expense
 = Net income

Our goal for every customer: A plan

We want all of our customers to see us as a trusted source for outstanding service and sound guidance. This holds true for our individual consumers as well as our largest commercial clients.

Our wholesale customers trust us with their commercial real estate, treasury management, investment banking and international banking needs.

Our retail bank customers count on us to help them save more, reduce debt, spend wisely, be financially secure and prepare for retirement—or in some cases consider whether to delay or redefine retirement. In a period of economic uncertainty, many of our customers are fearful and anxious. They’re more averse to risk, not sure whom they can trust with their money and assets. They’re searching for a trusted, reliable financial advisor who will put their needs and interests first.

We work with our retail bank customers and help them become personally accountable for their own financial well-being. Their financial plan should be unique to their needs and help them make wise financial choices so they’re “credit ready” and know when and how to move their cash into investments that are right for them. Some customers need a detailed financial plan, some a simple one. Everything we do for our customers should connect to their personal financial plan.

Our counsel and guidance can make a real difference in the lives of our customers. This requires an honest discussion as we build out their financial plans. Based on their responses, we can help customers rank their goals, test those goals with “what ifs” and guide their steps to reach those goals. They’ll expect us to offer the products and services that work well together and help them meet those needs.

They’ll come to us for personal, hometown, responsive, friendly service, and we’ll be there for them—ready to serve as their best financial partner for both their personal financial needs and their business financial needs. We’ll make it easy for them to adjust their portfolios, access their funds and move money to meet their financial needs. For our business customers, we’ll make it easy to manage their interest rate risks, payrolls, treasury functions, 401(k) plans, international operations, investments, insurance, equipment leasing, and their trustee and custodial services.

Our goal for our stock

We want our financial results to be among the very best in the financial services industry and the entire Fortune 500. We want to be a leader in our industry in return on equity, return on assets, and growth in revenue and profitability. Our stock should be among the best performers in any industry. But we think about achieving these goals in a very different way. This may surprise you. If we do what’s right for our team members, customers and communities, then— and only then—will we earn sustained profits and have our shareholders see us as a great investment.

Our reputation goal

We want to be known as one of the world’s great companies, and we’re already known as such by several measures. Barron’s ranks us one of the world’s 25 most-respected companies. Fortune ranks us as America’s 14th most-admired company.

Here’s what we know. An outstanding reputation cannot be bought or manipulated. It has to be earned over decades by ethical, customer-centered behavior. Our vision and our values come first, not our reputation.

Our reputation extends from our character, not the other way around. We should want to do something— or not do something—based first on whether it’s right for our customers, team members, communities and shareholders, not for how it will affect our reputation. If it’s the right thing to do, it will be good for our reputation.

Our goal for social responsibility

Our responsibility as a corporation goes far beyond protecting our customers’ assets and helping them succeed financially. We’re responsible for promoting the long-term economic prosperity and quality of life for everyone in our communities. If they prosper, so do we. There’s never been a thriving bank in a struggling community. We’re also responsible for managing the environmental impacts of our operations so the natural resources we use today are protected and preserved for future generations.

We want to be known as the best in corporate America in these five areas of social responsibility:

  1. Ethics. This is the foundation of how we’re perceived as a socially responsible company. We want to go beyond what the law and industry standards require. We monitor and refine our business practices to help ensure all team members are performing ethically and with integrity.
  2. Products and services. We help our customers succeed financially when we offer them financial solutions that are right for them—offering products and services responsibly, lending responsibly, servicing mortgages responsibly, and offering trusted financial advice and financial education.
  3. Community investments. We’re known as one of America’s most generous companies. We’re ranked in the top 25 on the Fortune 500 list, but the Journal of Philanthropy ranks us as No. 3 in corporate giving. We contribute more than $200 million annually to nonprofits in communities we serve. This is not about charity. It’s about intelligent and thoughtful investing in the future of our communities where our team members and customers live and work. The federal Office of the Comptroller of the Currency rates our bank “Outstanding” for community reinvestment, the highest rating possible, earned by fewer than one in five national banks.
  4. Team member engagement. We expect all our team members to be community leaders. We need all of them, regardless of rank or title, to be our eyes and ears, to help us identify and decide how Wells Fargo should respond to community needs. Wherever you go across our territory, you’ll see our team members rolling up their sleeves—teaching money management skills, helping build homes, working on environmental projects, mentoring youth, fundraising and serving on nonprofit boards. Our team members are volunteering in record numbers, and our team member volunteer efforts are regularly recognized by United Way as among the best in the nation.
  5. Our environmental commitment. Our success depends on healthy, sustainable communities, and we’re committed to responsible environmental stewardship in all our business decisions. By 2020, we will increase our energy efficiency by 40 percent, increase our waste diversion by 65 percent and reduce our absolute green house gas emissions by 35 percent, compared to 2008 levels. Over the next eight years, we’ll invest $30 billion in environmentally sustainable businesses to accelerate a greener economy and provide nonprofit organizations with $100 million to create healthier community environments and foster environmental innovations. We are offering customers the products, services and advice they can use to become more environmentally responsible consumers of financial services, such as paperless banking options. We’re strengthening our due diligence of middle-market and large corporate customers in environmentally sensitive industries to help ensure that, like us, they are doing business in environmentally responsible ways. And we’re building a culture of sustainability within Wells Fargo that encourages team members to engage in environmental stewardship activities in our communities, at work and in their daily lives. We are finding new ways to minimize our energy consumption, address climate change, use renewable sources of energy, and inspire our customers and team members to do the same.
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