Financial Analysis

Note 12: Legal Actions The Company is involved in a number of judicial, regulatory, governmental, arbitration, and other proceedings or investigations that expose the Company to potential financial losses or other adverse consequences. These proceedings and investigations include actions brought against Wells Fargo and/or our subsidiaries with respect to corporate-related matters and transactions in which Wells Fargo and/or our subsidiaries were involved. In addition, Wells Fargo and our subsidiaries may be requested to provide information to or otherwise cooperate with government authorities in the conduct of investigations of other persons or industry groups. We recognize accruals for legal actions when potential losses associated with the actions become probable and the costs can be reasonably estimated. For such accruals, we recognize the amount we consider to be the best estimate within a range of potential losses that are both probable and estimable. If we cannot determine a best estimate, we recognize the amount at the low end of the range of those potential losses. There can be no assurance as to the ultimate outcome of legal actions, including the matters described below, and the actual costs of resolving legal actions may be substantially higher or lower than the amounts accrued for those actions. ADVISORY ACCOUNT CASH SWEEP LITIGATION. Putative class actions have been filed in federal district courts alleging that the Company breached its fiduciary duties or agreem …

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Note 14: Fair Value Measurements We use fair value measurements to recognize fair value adjustments to certain assets and liabilities and to fulfill fair value disclosure requirements. Assets and liabilities recognized at fair value on a recurring basis are presented in Table 14.1 in this Note. Additionally, from time to time, we recognize fair value adjustments on a nonrecurring basis. These nonrecurring adjustments typically involve application of an accounting method such as lower of cost or fair value (LOCOM) and the measurement alternative, or write-downs of individual assets. Assets recognized at fair value on a nonrecurring basis are presented in Table 14.4 in this Note. We provide in Table 14.9 estimates of fair value for financial instruments that are not recognized at fair value, such as loans and debt liabilities carried at amortized cost. FAIR VALUE HIERARCHY. We classify our assets and liabilities recognized at fair value as either Level 1, 2, or 3 in the fair value hierarchy. The highest priority (Level 1) is assigned to valuations based on unadjusted quoted prices in active markets and the lowest priority (Level 3) is assigned to valuations that include one or more significant unobservable inputs. See Note 1 (Summary of Significant Accounting Policies) for a detailed description of the fair value hierarchy. In the determination of the classification of financial instruments in Level 2 or Level 3 of the fair value hierarchy, we consider all available information …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 22: Income Taxes Table 22.1 presents the components of income before income tax expense. Table 22.1: Income Before Income Tax Expense Year ended December 31, (in millions) 2025 2024 2023 U.S. $ 23,644 22,097 20,721 Non-U.S. 1,555 1,267 915 Total $ 25,199 23,364 21,636 Table 22.2 presents the components of income tax expense (benefit). Table 22.2: Income Tax Expense (Benefit) Year ended December 31, (in millions) 2025 2024 2023 Current: U.S. federal (1) $ 5,060 3,697 2,883 U.S. state and local 231 268 (453) Non-U.S. 420 345 227 Total current 5,711 4,310 2,657 Deferred: U.S. federal (1,670) (737) (662) U.S. state and local (157) (131) 586 Non-U.S. (43) (43) 26 Total deferred (1,870) (911) (50) Total $ 3,841 3,399 2,607 (1) The amount for the year ended December 31, 2023 does not reflect accounting changes related to our modified retrospective adoption of ASU 2023-02 Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method , effective January 1, 2024. See Note 15 (Securitizations and Variable Interest Entities) for information about tax credit investments. Table 22.3 reconciles the statutory federal income tax rate to the effective income tax rate. Table 22.3: Effective Income Tax Expense (Benefit) and Rate December 31, 2025 2024 2023 (in millions) Amount Rate Amount Rate Amount Rate Statutory federal income tax expense and rate $ 5,292 21.0 % $ 4,855 21.0 % $ 4,567 21.0 % Change …

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Note 9: Long-Term Debt We issue long-term debt denominated in multiple currencies, predominantly in U.S. dollars. Our issuances, which are generally unsecured, have both fixed and floating interest rates. Principal is repaid upon contractual maturity, unless redeemed at our option at an earlier date. Interest is paid predominantly on either a semi-annual or annual basis. As a part of our overall interest rate risk management strategy, we often use derivatives to manage our exposure to interest rate risk. We also use derivatives to manage our exposure to foreign currency risk. As a result, substantially all of the long-term debt presented below is hedged in a hedge accounting relationship. We are subject to various financial and operational covenants as part of our long-term borrowing arrangements. Some of these arrangements have provisions that may limit the merger or sale of certain subsidiary banks and the issuance of capital stock or convertible securities by certain subsidiary banks. Table 9.1 presents a summary of our long-term debt carrying values, which reflects unamortized debt discounts and premiums and hedge basis adjustments, unless we have elected the fair value option. See Note 13 (Derivatives) for additional information on qualifying hedge contracts and Note 14 (Fair Value Measurements) for additional information on fair value option elections. The interest rates displayed represent the range of contractual rates in effect at December 31, 2025. These interest ra …

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Accounting Standards Adopted in 2025 In 2025, we adopted Accounting Standard Update (ASU) 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (the Update), on a retrospective basis. The Update expands the disclosures for income taxes, primarily through further disaggregation of existing disclosures. On an annual basis, the Update requires a tabular effective income tax rate reconciliation with specified categories and, where applicable, further disaggregate certain categories by nature and/or jurisdiction if the reconciling item is 5% or more of the statutory tax expense. The Update also requires disaggregation of the amount of income taxes paid (net of refunds) by federal, state, and non-U.S. taxes and further disaggregation by individual jurisdictions where income taxes paid (net of refunds) is 5% or more of total income taxes paid (net of refunds). See Note 22 (Income Taxes) for additional information. Accounting Presentation Changes In fourth quarter 2025, we elected to change the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities and short-term borrowings, to provide increased prominence for these assets and liabilities and to promote consistency with industry peers. We made the following changes to all periods presented: reclassified trading debt and equity securities, trading loans, physical commodities inventory, derivatives, and securities sold, not yet purchased to trading assets and liabili …

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Note 21: Employee Benefits Pension and Postretirement Plans We sponsor a frozen noncontributory qualified defined benefit retirement plan, the Wells Fargo & Company Cash Balance Plan (Cash Balance Plan), which covers eligible employees of Wells Fargo. The Cash Balance Plan was frozen on July 1, 2009, and no new benefits accrue after that date. Prior to July 1, 2009, eligible employees Cash Balance Plan accounts were allocated a compensation credit based on a percentage of their certified compensation; the freeze discontinued the allocation of compensation credits after June 30, 2009. Investment credits continue to be allocated to participants accounts based on their accumulated balances. We did not make a contribution to our Cash Balance Plan in 2025. We do not expect that we will be required to make a contribution to the Cash Balance Plan in 2026. For the nonqualified pension plans and postretirement benefit plans, there is no minimum required contribution beyond the amount needed to fund benefit payments. We recognize settlement losses for our Cash Balance Plan based on an assessment of whether lump sum benefit payments will, in aggregate for the year, exceed the sum of its annual service and interest cost (threshold). Lump sum payments (included in the Benefits paid line in Table 21.1) did not exceed this threshold in either 2025 or 2024. Our frozen nonqualified defined benefit plans are unfunded and provide supplemental defined benefit pension benefits to certain elig …

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Note 20: Revenue and Expenses Revenue Our revenue includes net interest income on financial instruments and noninterest income. Table 20.1 presents our revenue by operating segment. For additional description of our operating segments, including additional financial information and information related to the management reporting process, see Note 19 (Operating Segments). Table 20.1: Revenue by Operating Segment (in millions) Consumer Banking and Lending Commercial Banking Corporate and Investment Banking Wealth and Investment Management Corporate Reconciling Items (1) Consolidated Company Year ended December 31, 2025 Net interest income $ 29,183 7,902 7,557 3,684 (539) (303) 47,484 Noninterest income: Deposit-related fees 2,694 1,290 1,086 27 2 5,099 Lending-related fees 89 565 844 16 1,514 Investment advisory and other asset-based fees (2) 2 79 158 10,259 10,498 Commissions and brokerage services fees 395 2,162 (1) 2,556 Investment banking fees (5) 130 2,985 (83) 3,027 Card fees: Interchange and merchant services fees (3) 3,721 191 53 4 4 3,973 Other card fees 616 616 Total card fees 4,337 191 53 4 4 4,589 Mortgage banking (4) 769 394 (13) 2 1,152 Net gains from trading activities (5) 4,987 118 42 5,147 Net gains (losses) from debt securities (4) 4 (148) (144) Net gains (losses) from equity securities (4) 5 75 66 (12) 110 244 Other (3)(4)(5)(6) 288 1,742 707 83 1,358 (1,645) 2,533 Total noninterest income 8,179 4,076 11,675 12,644 1,286 (1,645) 36,215 Total revenue $ 37,362 …

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Note 19: Operating Segments Our management reporting is organized into four reportable operating segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. All other business activities that are not included in the reportable operating segments have been included in Corporate. We define our reportable operating segments based on the product or service provided and the type of customer served, and their results are based on our management reporting process. The management reporting process measures the performance of the reportable operating segments based on the Companys management structure, and the results are regularly reviewed with our Chief Executive Officer (CEO) and relevant senior management. Our CEO is the chief operating decision maker (CODM) and reviews actual and forecasted operating segment net income for assessing performance and deciding how to allocate resources. The management reporting process is based on U.S. GAAP and includes specific adjustments, such as funds transfer pricing for asset/liability management, shared revenue and expenses, and taxable-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources, which allows management to assess performance consistently across the operating segments. Consumer Banking and Lending offers diversified financial products and services for consumers and small businesses. These financial products and services includ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 1: Summary of Significant Accounting Policies Wells Fargo & Company is a leading financial services company. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, to individuals, businesses and institutions throughout the U.S., and in countries outside the U.S. When we refer to Wells Fargo, the Company, we, our or us, we mean Wells Fargo & Company and Subsidiaries (consolidated). Wells Fargo & Company (the Parent) is a financial holding company and a bank holding company. Our accounting and reporting policies conform with U.S. generally accepted accounting principles (GAAP) and practices in the financial services industry. To prepare the financial statements in conformity with GAAP, management must make estimates based on assumptions about future economic and market conditions (for example, unemployment, market liquidity, real estate prices, etc.) that affect the reported amounts of assets and liabilities at the date of the financial statements, income and expenses during the reporting period and the related disclosures. Although our estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Management has made significant estimates in several areas, including: allowance for …

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Note 9: Legal Actions The Company is involved in a number of judicial, regulatory, governmental, arbitration, and other proceedings or investigations that expose the Company to potential financial losses or other adverse consequences. These proceedings and investigations include actions brought against Wells Fargo and/or our subsidiaries with respect to corporate-related matters and transactions in which Wells Fargo and/or our subsidiaries were involved. In addition, Wells Fargo and our subsidiaries may be requested to provide information to or otherwise cooperate with government authorities in the conduct of investigations of other persons or industry groups. We recognize accruals for legal actions when potential losses associated with the actions become probable and the costs can be reasonably estimated. For such accruals, we recognize the amount we consider to be the best estimate within a range of potential losses that are both probable and estimable. If we cannot determine a best estimate, we recognize the amount at the low end of the range of those potential losses. There can be no assurance as to the ultimate outcome of legal actions, including the matters described below, and the actual costs of resolving legal actions may be substantially higher or lower than the amounts accrued for those actions. ADVISORY ACCOUNT CASH SWEEP LITIGATION. Putative class actions have been filed in federal district courts alleging that the Company breached its fiduciary duties or agreeme …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 11: Fair Value Measurements We use fair value measurements to recognize fair value adjustments to certain assets and liabilities and to fulfill fair value disclosure requirements. Assets and liabilities recognized at fair value on a recurring basis are presented in Table 11.1 in this Note. Additionally, from time to time, we recognize fair value adjustments on a nonrecurring basis. These nonrecurring adjustments typically involve application of an accounting method such as lower of cost or fair value (LOCOM) and the measurement alternative, or write-downs of individual assets. Assets recognized at fair value on a nonrecurring basis are presented in Table 11.4 in this Note. We provide in Table 11.9 estimates of fair value for financial instruments that are not recognized at fair value, such as loans and debt liabilities carried at amortized cost. See Note 1 (Summary of Significant Accounting Policies) in our 2025 Form 10-K for a discussion of how we determine fair value. For descriptions of the valuation methodologies we use for assets and liabilities recorded at fair value on a recurring or nonrecurring basis, see Note 14 (Fair Value Measurements) in our 2025 Form 10-K. FAIR VALUE HIERARCHY. We classify our assets and liabilities recognized at fair value as either Level 1, 2, or 3 in the fair value hierarchy. The highest priority (Level 1) is assigned to valuations based on unadjusted quoted prices in active markets and the lowest priority (Level 3) is assigned to valuat …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Accounting Standards Adopted in 2026 We did not adopt any accounting standards in the first half of 2026.

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Note 18: Employee Benefits Pension and Postretirement Plans We sponsor a frozen noncontributory qualified defined benefit retirement plan, the Wells Fargo & Company Cash Balance Plan (Cash Balance Plan), which covers eligible employees of Wells Fargo. The Cash Balance Plan was frozen on July 1, 2009, and no new benefits accrue after that date. For additional information on our pension and postretirement plans, including plan assumptions, investment strategy and asset allocation, projected benefit payments, and valuation methodologies used for assets measured at fair value, see Note 1 (Summary of Significant Accounting Policies) and Note 21 (Employee Benefits) in our 2025 Form 10-K. Table 18.1 presents the components of net periodic benefit cost. Service cost is reported in personnel expense and all other components of net periodic benefit cost are reported in other noninterest expense on our consolidated statement of income. Table 18.1: Net Periodic Benefit Cost 2026 2025 Pension benefits Pension benefits (in millions) Qualified Non- qualified Other benefits Qualified Non- qualified Other benefits Quarter ended June 30, Service cost $ 8 9 Interest cost 88 3 3 97 4 3 Expected return on plan assets (117) (7) (123) (7) Amortization of net actuarial loss (gain) 33 (10) 34 (6) Amortization of prior service credit (2) (2) Net periodic benefit cost $ 12 3 (16) 17 4 (12) Six months ended June 30, Service cost $ 17 17 Interest cost 176 7 6 195 8 6 Expected return on plan assets (2 …

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Note 17: Revenue and Expenses Revenue Our revenue includes net interest income on financial instruments and noninterest income. Table 17.1 presents our revenue by operating segment. For additional description of our operating segments, including additional financial information and information related to the management reporting process, see Note 16 (Operating Segments). For a description of our revenue from contracts with customers, see Note 20 (Revenue and Expenses) in our 2025 Form 10-K. Table 17.1: Revenue by Operating Segment (in millions) Consumer Banking and Lending Commercial Banking Corporate and Investment Banking Wealth and Investment Management Corporate Reconciling Items (1) Consolidated Company Quarter ended June 30, 2026 Net interest income $ 7,742 2,047 2,273 919 (589) (75) 12,317 Noninterest income: Deposit-related fees 747 325 277 7 1 1,357 Lending-related fees 23 148 229 5 405 Investment advisory and other asset-based fees (2) 264 15 36 2,506 2,821 Commissions and brokerage services fees 127 123 437 687 Investment banking fees (3) 24 948 (30) 939 Card fees: Interchange and merchant services fees (3) 973 58 15 1 1,047 Other card fees 175 175 Total card fees 1,148 58 15 1 1,222 Mortgage banking (4) 154 104 (3) 1 256 Net gains (losses) from trading activities (1) 1,309 26 59 1,393 Net gains (losses) from debt securities (4) 2 (1) 1 Net gains from equity securities (4) 37 2 808 847 Other (4) 87 462 109 (6) 164 (439) 377 Total noninterest income 2,546 1,071 3,15 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 16: Operating Segments Our management reporting is organized into four reportable operating segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. All other business activities that are not included in the reportable operating segments have been included in Corporate. We define our reportable operating segments based on the product or service provided and the type of customer served, and their results are based on our management reporting process. The management reporting process measures the performance of the reportable operating segments based on the Companys management structure, and the results are regularly reviewed with our Chief Executive Officer (CEO) and relevant senior management. Our CEO is the chief operating decision maker (CODM) and reviews actual and forecasted operating segment net income for assessing performance and deciding how to allocate resources. The management reporting process is based on U.S. GAAP and includes specific adjustments, such as funds transfer pricing for asset/liability management, shared revenue and expenses, and taxable-equivalent adjustments to consistently reflect income from taxable and tax-exempt sources, which allows management to assess performance consistently across the operating segments. Consumer Banking and Lending offers diversified financial products and services for consumers and small businesses. These financial products and services includ …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 1: Summary of Significant Accounting Policies Wells Fargo & Company is a leading financial services company. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, to individuals, businesses and institutions throughout the U.S., and in countries outside the U.S. When we refer to Wells Fargo, the Company, we, our or us, we mean Wells Fargo & Company and Subsidiaries (consolidated). Wells Fargo & Company (the Parent) is a financial holding company and a bank holding company. Our accounting and reporting policies conform with U.S. generally accepted accounting principles (GAAP) and practices in the financial services industry. For a discussion of our significant accounting policies, see Note 1 (Summary of Significant Accounting Policies) in our Annual Report on Form 10-K for the year ended December 31, 2025 (2025 Form 10-K). There were no material changes to these policies in the first half of 2026. To prepare the financial statements in conformity with GAAP, management must make estimates based on assumptions about future economic and market conditions (for example, unemployment, market liquidity, real estate prices, etc.) that affect the reported amounts of assets and liabilities at the date of the financial statements, income and expenses during the reporting period and the related disclosures. Although our estimates contemplate current conditions and how we expect them to change in …

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Note 8: Preferred Stock and Common Stock We are authorized to issue 20 million shares of preferred stock, without par value. Outstanding shares of preferred stock rank senior to shares of common stock both as to the payment of dividends and liquidation preferences, but have no general voting rights. All outstanding preferred stock with a liquidation preference value, except for Series L Preferred Stock, may be redeemed for its liquidation preference value, plus any accrued but unpaid dividends, on any dividend payment date on or after the earliest redemption date for that series. Additionally, these same series of preferred stock may be redeemed following a regulatory capital treatment event, as described in the terms of each series. Capital actions, including redemptions of our preferred stock, may be subject to regulatory approval or conditions. In addition, we are authorized to issue 4 million shares of preference stock, without par value, and we have not issued any stock under this authorization. If issued, the preference stock would be limited to one vote per share. In March 2026, we redeemed our Preferred Stock, Series BB, and issued our Preferred Stock, Series GG. Table 8.1 summarizes information about our preferred stock. Table 8.1: Preferred Stock June 30, 2026 December 31, 2025 (in millions, except shares) Earliest redemption date Shares authorized and designated Shares issued and outstanding Liquidation preference value Carrying value Shares authorized and designat …

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