Sustaining Wealth SHAINA PAGE ROBERT SWARTZ BENJAMIN SCHUETZ
Sustaining Wealth SHAINA PAGE, ROBERT SWARTZ, BENJAMIN SCHUETZ, TIARA WELLMAKER
ISSUE � net income of $7. 5 million, or $0. 10 per diluted share, for the first quarter 2011, � net loss of $24. 3 million, or $0. 35 per diluted share, for the first quarter 2010
OVERVIEW � History � Corporate Governance � Code of Conduct � Mission Statement � Operations and Service � Financial Status � Swot � Strategy � Review
HISTORY � Wells Fargo & Co. Founded in 1852 � Founded by Henry Wells and William Fargo � Opened for business in San Francisco � Company earned its fame throughout the 1850 s � Helped start the overland mail company � 1861 -took over operations of the Pony Express � 1866 -combined all major western stage lines
HISTORY CON’T � 1888 -Became the country’s 1 st nationwide express company � By 1910 -company’s network linked 6, 000 locations � By 1918 - was part of 10, 000 communities � From 1905 to 1923 -it was a premier downtown San Francisco institution � Through the 20 th Century-Wells Fargo rebuilt from just one office in San Francisco
CORPORATE GOVERNANCE regulated by federal, state, and local laws � managed under the direction of its Board of Directors � established by the Board of Directors provide the framework for the governance �
CODE OF CONDUCT � We define “culture” as knowing what you need to do when you get up in the morning without having to be told what to do. Culture is the attitude we bring to work every day — the pattern of thinking and acting with the customer in mind. It’s not just doing the right things, it’s doing things right — a thousand different behaviors we’ve inherited from team members who came before us and that we model and give as our legacy for the team members who come after us. Respecting differences. Respecting deadlines. Listening to each other. Keeping promises. Returning phone calls and e-mails as promptly as we can.
MISSION STATEMENT � “We want to satisfy all our customers’ needs and help them succeed financially”
OPERATION AND SERVICE � Personal • • • � Small Business • • • � Banking Loans Investing & Insurance Product & Service Online Solutions Resource Commercial • • • Business Needs Product & Service Industry Solutions
REGIONAL BANKING 6, 314 banking stores � 39 states as well as in the D. C. � 20 million retail household �
FINANCIAL STRATEGY � Diversified Business Model � Cross-selling strategy � 5. 70 products per customer household � WFC is split between 3 major segments � Community Banking � Wholesale Banking � Wealth, Brokerage, & Retirement
KEY NUMBERS 350 Stock Price (5 yr) 300 60 250 50 200 150 100 50 M ar ke t R Ca ev p Em enu ($ B pl e ( illio oy $ ee Bi n) s llio (1 n) , 0 00 s) 0 40 WFC BAC 30 C 20 10 0 11. 1. 2005 11. 1. 2006 11. 1. 2007 11. 1. 2008 11. 1. 2009 11. 1. 2010 WFC BAC C
FINANCIAL EFFICIENCY � Return (ttm): on Assets 14 � WFC: 1. 01% � BAC: -0. 15% � C: 0. 58% � Return (ttm): � WFC: Net Income on Equity 10. 46% � BAC: -1. 46% � C: 6. 83% 12 10 8 6 WFC 4 BAC 2 C 0 -2 -4 -6
SWOT STRENGTHS � � � � � Strengths Strong Credit Rating 19 th Fortune 500 list (2010) Forbes top 100 company Geographically diverse Diverse Products Ranked as America’s ‘ 2 nd Most Generous Corporate Foundations’ according to Business. Week (2010). Ranked as America’s ‘#1 Green Bank and #13 Greenest Big Company’ according to Newsweek (2009). Scored a perfect 100 on Human Rights Campaign’s ‘Corporate Equality Index’ (2010). Renowned to be the ‘Best Consumer Internet Bank and Best Corporate/Institutional Internet Bank in North America’ by Global Finance (2010
WEAKNESSES � Asset quality getting weak due to the high level of exposure of real estate � International presence is very limited � Low level of debit card market share which have become a major vehicle for making transactions
OPPORTUNITIES � Expansion in the international market � Population growth and the growing immigrant population � Commercial Banking Industry growth sustainability � Reduced competition due to the economic slowdown � New acquisitions such as acquiring JFK Consulting Group
THREATS � Rising incidents regarding the online scams � Consolidation in the U. S. banking industry � Mortgage issues � Government Interventions. � Sharp rise in interest rates
STRATEGY (EXPANSION) � Expanded • • • into the following States: Hawaii Kentucky Louisiana Maine Massachusetts Missouri New Hampshire Oklahoma Rhode Island Vermont West Virginia
RECAP � History � Corporate Governance � Code of Conduct � Mission Statement � Operations and Service � Financial Status � Swot � Strategy � Review
REVIEW � What is the business model Wells Fargo exhibits? � How many states is Wells Fargo established in? � What is Wells Fargo mission Statement? � When was Wells Fargo Founded? � Name two services Wells Fargo Offer?
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