Wells Fargo 2012 Annual Report Download - page 7

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Increase over 2011 in new
loan commitments to U.S.
smallbusinesses
Putting customers first
Many companies say they put customers first; it’s another
thing to do it. It begins with recognizing there are
elements in the future we can’t control, but we can control
how we show up each day to serve customers.
That’s our constant focus.
Consider our customers’ banking habits. In2012, more
than 23million customers actively banked with us online,
including more than 9million with mobile devices. Yet,
even today, most customers open their first account, and
establish their banking relationships, by having face-to-
face visits at brick-and-mortar stores. That’s why we’ve
invested in a store network that provides a WellsFargo
retail store or ATM within two miles of nearly half the U.S.
population and small businesses within our footprint.
We’re also committed to oering more digital access
via mobile, tablet, and computers to allow customers
to choose when, where, and how to conduct their
banking business. In2012, we launched new features
like WellsFargo Mobile® Deposit, expanded our Send &
Receive Money service, and introduced a new WellsFargo
app for iPad. In2012, retail customers made more
than $30billion in payments and transfers via mobile.
WellsFargo was the first major U.S. financial services
company to oer mobile banking for commercial and
corporate customers when the service launched in2007,
and we’ve continued to innovate and work with our
customers to design and build new mobile services.
In2012, we made our leading international trade services
application, TradeXchange, available via CEOMobile®.
We also introduced enhancements to our popular
Commercial Card Expense Reporting mobile capabilities.
./Ʉ4 -ƇɄCEOMobile securely processed more than
$17billion in wires. In2012, we reached a milestone of
100million e-receipts chosen by customers for their ATM
transactions, and we also added an e-receipt option for
teller transactions. Technology even empowered our
customers’ philanthropy, as they used WellsFargo ATMs
to give more than $1million to the American Red Cross
for Superstorm Sandy relief eorts.
Growing revenue
When we put customers first, it opens doors to our next
priority: growing revenue. At WellsFargo, we have chosen
not to let the “GreatRecession” serve as an excuse to not
grow. We see ourselves as a growth company— nomatter
the environment— and believe the best measure of
progress against that goal is revenue. We grow revenue in
two important ways: through interest income on loans we
make, and fee income on services we provide.
In2012, we grew revenue 6percent to $86.1billion,
mostly from noninterest income. (Imagine our earnings
power when a more normal rate environment returns.)
The revenue growth included double-digit growth in
our capital markets, commercial real estate, corporate
banking, mortgage, asset-based lending, corporate trust,
and international businesses.
Our Community Banking segment grew revenue by
$2.6billion to $53.4billion and net income by $1.4billion
to $10.5billion in2012, partly because of higher mortgage
banking revenue and above-average equity gains. Its
performance also included annual revenue growth in
Education Financial Services— up2percent— andDealer
Services— up4percent.
Our Wholesale Banking segment grew full-year
revenue by $2.5billion to $24.1billion and full-year net
income by approximately $800million to $7.8billion
in2012. The broad-based growth included acquisitions
and increased loans and deposits. Areas of notable
growth included capital finance, commercial banking,
commercial real estate, and corporate banking. For
example, Investment Banking’s revenue from commercial
and corporate customers grew 30percent from the prior
year due to attractive capital markets conditions and
continued cross-selling. In2012, we saw broad-based
year-over-year revenue growth in our International Group
of 15percent, driven by growth in net interest income
and cross-sell-related revenue in our Global Financial
Institutions business, which serves U.S. customers doing
business globally and foreign companies doing business
in the U.S. Our Commercial Banking team also celebrated
its 10th consecutive quarter of average loan growth.