Wells Fargo Reports January Retail Banking Customer Activity
February 17 2017 - 11:00AM
Business Wire
Wells Fargo & Company (NYSE: WFC) today reported Retail
Banking customer activity data for January 2017. Tim Sloan,
President and Chief Executive Officer noted, “Today’s update on
Retail Banking trends is part of our ongoing commitment to
transparency. We remain focused on meeting our customers’ financial
needs by providing great service and quality products, and we’re
pleased that our customer experience survey scores increased for
the third consecutive month. We will provide our next update on
customer activity trends in March.”
Mary Mack, head of Community Banking, added, “After factoring in
day count differences and typical seasonality, trends were
relatively stable in January and within our expectations. We have
made good progress, including rolling out our new Retail Banking
incentive compensation program in January, but we have more work
ahead as we remain focused on strengthening our relationships with
existing customers and building new ones with potential
customers.”
Key Takeaways
Customer Interactions
- Total branch interactions were down 12%
from December, which is typically a month with higher levels of
teller activity, and down 4% from January 2016 (year-over-year
“YoY”)
Deposit Balances and Accounts
- Average consumer and small business
deposit balances were stable from December 2016 (linked month “LM’)
and up 7% YoY
- Consumer checking account opens were up
18% LM due to typical seasonality, but down 0.2 million, or 31%,
YoY
- Customer-initiated consumer checking
account closures were up 1% LM and 4% YoY
- Primary consumer checking customers of
23.4 million, down modestly LM, but up 2.6% YoY
Debit and Credit Cards
- Customers continued to actively use
their debit and credit cards
- Point-of-sale debit card transactions
were down 10% LM consistent with the typical seasonal slowdown
after the holidays, but were up 5% YoY
- Consumer credit card purchase volume
was down 19% LM, consistent with the typical slowdown after the
holidays, but was up 7% YoY; consumer credit card balances
outstanding were down 2% LM, but were up 7% YoY
- New consumer credit card applications
were up 8% LM due to typical seasonality, but down 0.2 million, or
47%, YoY
- Point-of-sale active consumer credit
card accounts of 7.7 million, down 4% LM, but up 6% YoY
Customer Experience Surveys
- Customer loyalty scores were up for the
third consecutive month, but were down YoY
- Survey results of overall satisfaction
with most recent visit were 77.2% in January 2017, up from 76.4% in
December 2016, and down slightly from 77.8% in January 2016
Jan 2017change from:
(in millions, unless otherwise noted)
Jan2017
Dec2016
Jan2016
Dec2016
Jan2016
Customer Interactions (1) Total Branch
Interactions 48.9 55.3 50.9 -12 % -4 % Teller Transactions 46.0
52.3 47.5 -12 % -3 % Branch Banker Interactions 2.9 2.9 3.4 0 % -14
% Total Phone Banker Interactions 9.2 9.6 8.5 -5 % 8 % Total
Digital (Online and Mobile) Secure Sessions 469.9 479.2 459.0 -2 %
2 %
Total Digital (Online and Mobile) Active
Customers (2)
27.6 27.3 26.8 1 % 3 % Consumer Checking Account Opens 0.3 0.3 0.5
18 % -31 % Consumer Checking Account Customer-Initiated Closures
(3) 0.2 0.2 0.2 1 % 4 %
Deposit Balances and Accounts
Consumer and Small Business Banking
Deposits(period end, $ in billions) (4)
$ 750.4 $ 760.6 $ 709.9 -1 % 6 %
Consumer and Small Business Banking
Deposits(average, $ in billions) (4)
$ 754.0 $ 753.8 $ 706.2 0 % 7 % Primary Consumer Checking Customers
(5) 23.4 23.5 22.8 0 % 3 % Primary Consumer Checking Customers YoY
Growth (5) 2.6 % 3.0 % 5.1 %
Debit Cards (Consumer and
Business) Point-of-Sale Active Cards 25.7 26.2 25.6 -2 % 1 %
Point-of-Sale Transactions 630.5 698.0 598.1 -10 % 5 %
Consumer Credit Cards (6) Point-of-Sale Active Accounts 7.7
8.0 7.2 -4 % 6 % Applications 0.2 0.2 0.4 8 % -47 % Balances
(period end, $ in billions) $ 27.6 $ 28.3 $ 25.7 -2 % 7 % Purchase
Volume ($ in billions) $ 5.4 $ 6.6 $ 5.0 -19 % 7 %
Customer Experience Survey Scores with Branch Customer
Loyalty 56.9 % 55.5 % 61.1 % Overall Satisfaction with Most Recent
Visit 77.2 % 76.4 % 77.8 % Business Days 20 21 19
Percentage changes are calculated using
whole numbers. If the % change were based on the rounded amounts
presented, it would produce a different result for Branch Banker
Interactions, Total Phone Banker Interactions, Consumer Checking
Account Opens, Consumer Checking Account Customer-Initiated
Closures, Debit Card Point-of-Sale Active Cards, Consumer Credit
Card Point-of-Sale Active Accounts, Consumer Credit Card
Applications and Consumer Credit Card Purchase Volume, but all
differences are attributable to rounding. (1) A customer
communication or transaction qualifies as a customer traffic
interaction, which is consistent with the definition used by
management for each customer channel presented. Preparation of
customer traffic interaction metrics requires the application of
interpretive judgement for each communication or transaction.
Management uses these metrics to monitor customer traffic trends
within the Company’s Retail Banking business. (2) Primarily
includes retail banking, consumer lending, small business and
business banking customers. (3) Does not include accounts closed by
the bank. (4) Period-end and average deposits for January 2017
included $1.8 billion and $2.1 billion, respectively, and December
2016 included $1.2 billion and $2.5 billion, respectively, of
deposits related to our new Payments, Virtual Solutions, and
Innovation Group that involved realignment in fourth quarter 2016
of some personnel and business activities from Wholesale Banking to
the Community Banking operating segment. (5) Customers who actively
use their checking account with transactions such as debit card
purchases, online bill payments, and direct deposit. (6) Credit
card metrics shown in the table are for general purpose cards
only.
Conference Call
The Company will host a live conference call on Friday, February
17, at 9 a.m. PT (12 p.m. ET). You may participate by dialing
866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The
call will also be available online at
https://www.wellsfargo.com/about/investor-relations/events/ and
https://engage.vevent.com/rt/wells_fargo_ao~68962498.
A replay of the conference call will be available beginning at
11:30 a.m. PT (2:30 p.m. ET) on February 17 through Friday, March
3. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID 68962498#. The replay will
also be available online at
https://www.wellsfargo.com/about/investor-relations/events/ and
https://engage.vevent.com/rt/wells_fargo_ao~68962498.
Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements about our
future financial performance and business. Because forward-looking
statements are based on our current expectations and assumptions
regarding the future, they are subject to inherent risks and
uncertainties. Do not unduly rely on forward-looking statements as
actual results could differ materially from expectations.
Forward-looking statements speak only as of the date made, and we
do not undertake to update them to reflect changes or events that
occur after that date. For information about factors that could
cause actual results to differ materially from our expectations,
refer to our reports filed with the Securities and Exchange
Commission, including the discussion under “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2015 and
in our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2016, as filed with the Securities and Exchange
Commission and available on its website at www.sec.gov.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Founded in 1852 and headquartered in San Francisco, Wells
Fargo provides banking, insurance, investments, mortgage, and
consumer and commercial finance through more than 8,600 locations,
13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and
has offices in 42 countries and territories to support customers
who conduct business in the global economy. With approximately
269,000 team members, Wells Fargo serves one in three households in
the United States. Wells Fargo & Company was ranked No. 27 on
Fortune’s 2016 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy our customers’ financial needs and
help them succeed financially.
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version on businesswire.com: http://www.businesswire.com/news/home/20170217005167/en/
Wells Fargo & CompanyMediaAncel Martinez,
415-222-3858InvestorsJim Rowe, 415-396-8216
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