ANNUAL REPORT PROJECT

1
ANNUAL REPORT PROJECT

• WELLS FARGO
• PREPARED BY DWAYNE FRANCIS
• FOR ACG 2021 SECTION080

2
EXECUTIVE SUMMARY

• Wells Fargo Company has met and exceeded its
  goals and has recorded a 13 increase in net
  profit.

3
INTRODUCTION

• Chief executive officer RICHARD M. KOVACEVICH
• Home Office located in San Francisco, CA
• Latest fiscal statement
• Wells Fargo is a Financial Institution catering
  to the needs of individuals, small businesses,
  and the commercial market.
• Banking span from the west coast and goes as far
  east as Texas. All other services are spread
  evenly across the nation.

4
AUDIT REPORT

• KPMG LLP, Independent auditors, summarized that
  internal control over financial reporting was
  effectively maintained.

5
STOCK MARKET INFORMATION

• Most recent stock price  58.45
• Trading within last 52 Weeks ranged from 57.55
  to 64.04
• Dividend per share .52
• The captioned info was obtained on
• October 2, 2005.
• Investing in Wells Fargo should be considered
  i.e. Hold

6
INDUSTRY SITUATION

• 1, 2 or 3 in deposit market share in 17 of our
  23 banking states 2 nationally (6/30/04)
• 1 retail mortgage originator,
• 2 mortgage servicing,
• 1 in mortgages to low-to-moderate income home
  buyers
• 1 home equity lender,
• 1 (and first) internet bank,
• 1 small business lender,
• 1 insurance broker owned by bank holding company
  (worlds 5th largest insurance brokerage) Inside
  Mortgage Finance

7
INDUSTRY SITUATION CONTINUE

• 1 financial services provider to middle-market
  businesses in our territory,
• 1 agricultural lender (banks)
• 2 debit card issuer,
• 3 bank auto lender,
• 4 ATM network,
• One of USAs leading commercial real estate
  lenders among banks,
• One of North Americas premier consumer finance
  companies.

8
COMPANY PLANS

• More customer service and interaction
• Increase average household and commercial
  products from 4.6 5.3 respectively to 8
• Increase of banking customers who have Wells
  Fargo mortgages home equity lines
• Increase the of Wells Fargo credit/ Debit
  cardholders
• Further expansion of distribution channels for
  increased customer convenience. IE ATMs
• Attract more customers while, maintaining current
  through cross selling
• Build a more inclusive diverse workplace

9
INCOME STATEMENT( IN MILLIONS)
2004 2003
INCOME FROM OPERATIONS 30059 28389
NET INCOME 7014 6202
10
BALANCE SHEET( IN THOUSANDS)
Years Assets Liability Stockholders Equity
2004 2444452 2247087 147365
2003 4195509 4017711 127798

• Total assets and liabilities both decreased while
  stockholders equity increased

11
STATEMENT OF CASH FLOWS

• The cash flow is more than the net income for the
  past two years.
• The company is not growing through investment, it
  is growing through financing.
• The primary source of financing is loan term
  loans.
• The cash flow over the past two tears has
  decreased.

12
ACCOUNTING POLICIES

• The companies accounting and reporting policies
  conform with the generally accepted accounting
  principles (GAAP) and practices in the financial
  service industry. Estimates and assumptions were
  made by management that affected totals for
  assets and liabilities on the financial
  statements.

13
FINANCIAL ANALYSIS LIQUIDITY RATIOS
2004 2003
Working capital 192965 177798
Current ratio 1.08 1.04
14
FINANCIAL ANALYSIS PROFITABLITY RATIOS
2004 2003
Profit margin 2.5 2.5
Return on asset 1.7 1.64
Return on Equity 19.56 19.36
15
FINANCIAL ANALYSIS SOLVENCY RATIOS
2004 2003
Debt to Equity 15.25 31.44
16
FINANCIAL ANALYSIS MARKET STRENGTH RATIOS

• 2003 2004
• Price/earnings per share .92
  .84