Wells Fargo & Company (WFC) 8-K Results of Operations and Financial Condition

Media	Investors
Janis Smith	Bob Strickland
(415)396-7711	(415)396-0523

Tuesday, October 18, 2005
 
WELLS FARGO REPORTS RECORD QUARTERLY EARNINGS
PER SHARE, NET INCOME AND REVENUE

      Highlights:

• Record diluted earnings per share of $1.16, up 14 percent from prior year’s $1.02, up 14 percent (annualized) from prior quarter

• Record net income of $1.98 billion, up 13 percent from prior year’s $1.75 billion, up 14 percent (annualized) from prior quarter

• Return on equity of 19.7 percent

• Record quarterly revenue up 16 percent from prior year; record year-to-date revenue up 12 percent from prior year

• Strong balance sheet growth

o Average loans up 8 percent from prior year, despite the sale of $24 billion of lowest-yielding adjustable rate mortgages (ARMs) in the quarter; average commercial loans up 14 percent from prior year

o Average retail core deposits up 10 percent from prior year

• Credit quality in line with expectations, excluding Hurricane Katrina

o Nonperforming assets at .50 percent of total loans

o Allowance for credit losses provided coverage of 272 percent of nonaccrual loans and other assets

o $100 million provision for the impact of Hurricane Katrina

Selected Financial Information	Third Quarter									Nine months ended Sept. 30								,
							%									%
Earnings	2005			2004			Change			2005			2004			Change
Diluted earnings per share	$	1.16		$	1.02			14	%	$	3.36		$	3.05			10	%
Net income (in billions)		1.98			1.75			13			5.74			5.23			10
Asset Quality
Net charge-offs as % of avg. total loans		.73	%		.59	%		24			.72	%		.60	%		20
Nonperforming assets as % of total loans		.50			.56			(11	)		.50			.56			(11	)
Other
Revenue (in billions)	$	8.5		$	7.3			16		$	24.5		$	21.9			12
Average loans (in billions)		295.6			274.3			8			292.9			265.7			10
Average core deposits (in billions)		247.2			225.0			10			239.2			221.0			8

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SAN FRANCISCO — Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $1.16 for third quarter 2005, up 14 percent from $1.02 in third quarter 2004. Net income was a record $1.98 billion, up 13 percent from $1.75 billion in third quarter 2004.

“Our outstanding performance this quarter proves again that our time-tested business model and talented team can consistently produce industry-leading results including double-digit growth in revenue, net income and earnings per share,” said Chairman and CEO Dick Kovacevich. “We’ve achieved this superior performance over a variety of economic cycles because of our disciplined risk management, diversity across virtually all of financial services and our focus on earning all our customers’ business.

“As we work with our customers to assess their personal situation and the effect of the Gulf State hurricanes, we are offering them personal financial counseling, dedicated assistance numbers and moratoriums on collections and foreclosures. We also may provide extended terms for affected customers depending on their circumstances. Through year-end, residents of Alabama, Louisiana and Mississippi can make free withdrawals from any Wells Fargo ATM, nationwide, whether or not they have a Wells Fargo account. We also increased the daily spending limit for our ATM and Check Card customers in affected areas of those states. Our affected small business customers can obtain emergency increases in their credit lines, bridge loans, term loans, credit protection, deferred loan payments and fee waivers. Our affected student loan customers automatically have loan forbearance through year-end. Our company and team members have contributed a total of $1.5 million to the American Red Cross Hurricane Katrina Relief Fund. Although very difficult to precisely assess at this time, we recorded a $100 million provision in excess of net charge-offs this quarter for the impact of Hurricane Katrina on Wells Fargo’s loan portfolio.

“During the quarter, our home mortgage and consumer finance businesses announced changes to benefit customers of our nonprime real estate-secured lending businesses including a flat maximum limit for origination fees on retail nonprime loans, simplifying caps on prepayment charges and eliminating mandatory arbitration clauses on consumer finance real estate loans. Our consistently superior financial performance, our commitment to our communities and ethical business practices were among the criteria for a recent survey of money managers byBarron’swhich ranked Wells Fargo the world’s most respected financial services company.”

Financial Performance
Diluted earnings per share were a record $1.16, up 14 percent from $1.02 in third quarter 2004 and up 14 percent (annualized) from $1.12 earned in second quarter 2005, once again driven by solid double-digit revenue growth, up 16 percent from last year. “We’ve always maintained that our focus on earning all of our customers’ business by cross-selling our broad set of products and services provides us with both the diversification and opportunity to consistently grow both the top and bottom lines, regardless of the economic environment, and third quarter results show the value of our strategy,” said Chief Financial Officer Howard Atkins. “Our 14 percent earnings growth was broad based, with nearly every consumer and commercial business line achieving double-digit profit growth, including regional banking, middle market/corporate banking, commercial real estate, asset-based lending, small business lending, home mortgage, student lending, asset management and international services. Both net interest income and noninterest income grew solidly during the quarter and many of our fee-based products had double-digit revenue growth. As we’ve stated, in order to consistently grow

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over the long term, successful companies must invest in their core businesses and maintain strong balance sheets. Actions taken in the third quarter included:

• $33 million in losses (not including foregone net interest income) related to the sale of an additional $24 billion of our lowest-yielding ARMs,

• $31 million of realized losses on the sale of debt securities, including the sale of low-yielding fixed income securities,

• $100 million provision in excess of net charge-offs in order to allow for our current assessment of the effect of Hurricane Katrina,

• $41 million of aircraft lease write-downs for airlines that filed for bankruptcy during the quarter,

• $25 million expense for the early adoption of an accounting standard (FIN 47), and

• $14 million in expenses for the integration of the Strong Financial and Texas bank acquisitions.

“In addition, we continued to make investments by increasing our sales force by approximately 1,000 team members, opening 21 regional banking stores and 16 Wells Fargo Financial stores, renovating 100 stores and improving distribution and customer service during the quarter,” said Atkins.

Revenue
Revenue of $8.5 billion increased $1.2 billion, or 16 percent, from a year ago, and $2.6 billion, or 12 percent, for the first nine months of 2005. Wells Fargo Home Mortgage revenue increased $487 million to $1.4 billion, and for the first nine months of 2005 increased $633 million to $3.7 billion from the same period of 2004. Combined revenue of businesses other than Home Mortgage grew 11 percent in third quarter 2005 from third quarter 2004 and 10 percent year-to-date 2005 from year-to-date 2004. “Revenue growth was once again broad based across most of our businesses and reflected solid growth in both net interest income and noninterest income,” said Atkins.

Loans
Average loans of $295.6 billion increased $21.4 billion, or 8 percent, from third quarter 2004. Excluding real estate 1-4 family first mortgages — the loan category impacted by ARM sales over the past several quarters — total average loans grew $37.6 billion, or 20 percent.

Average consumer loans increased 4 percent from third quarter 2004, and declined 8 percent (annualized) on a linked-quarter basis. “Excluding real estate 1-4 family first mortgages, consumer loans continued to grow at a healthy pace, up 26 percent year-over-year and 12 percent linked quarter (annualized), reflecting solid growth in home equity, credit card, and other revolving credit and installment loans,” said Atkins.

Commercial loan growth also was strong, with average commercial and commercial real estate loans up $13.0 billion, or 14 percent, year-over-year and $3.3 billion, or 13 percent (annualized), on a linked-quarter basis, the fourth consecutive quarter of double-digit, linked-quarter growth. “We continued to see solid commercial loan growth in asset-based lending, middle market, specialized financial services, commercial real estate and small business banking, including business direct,” said Atkins.

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Deposits
Average core deposits of $247.2 billion, grew $22.2 billion, or 10 percent, from third quarter 2004 and increased $8.9 billion, or 15 percent (annualized), on a linked-quarter basis. Average mortgage escrow deposits were $19 billion, up $5.4 billion from third quarter 2004 and up $2.9 billion from second quarter 2005. Excluding mortgage escrow balances, total average core deposits grew 8 percent from third quarter 2004 and 11 percent (annualized) on a linked-quarter basis. Average retail core deposits grew $18.9 billion, or 10 percent, from third quarter 2004 and increased $6.3 billion, or 13 percent (annualized), on a linked-quarter basis. “Our consistently strong deposit growth in spite of the competitive environment was broad based across our deposit products, with particular strength in small business demand accounts, interest-bearing checking and savings certificates,” said Atkins.

Net Interest Income
Net interest income increased 6 percent from third quarter 2004 and 12 percent (annualized) on a linked-quarter basis reflecting solid loan growth (other than ARMs) and a relatively stable net interest margin. Average earning assets grew 6 percent year-over-year and 12 percent (annualized) on a linked-quarter basis, or 14 percent and 25 percent, respectively, excluding real estate 1-4 family first mortgages. Net interest margin of 4.86 percent was down 3 basis points from both a year ago and second quarter 2005, with the positive impact on the margin from balance sheet repositioning actions offset by the increase in the mortgage warehouse on a linked-quarter basis. “Given the prospect of higher short-term interest rates and a flatter yield curve, beginning in the second quarter 2004 we started a program of selling our lowest-yielding ARMs on our balance sheet, periodically replacing some of these sales at higher yields. From the second quarter of 2004 through the third quarter of 2005, we sold $60 billion in ARMs at an average yield of 4.22 percent, realizing losses during these six quarters of approximately $350 million not including the foregone interest differential. As a result, however, the average yield on our 1-4 family first mortgage portfolio — which includes ARMs — increased from 5.19 percent on an average balance of $89.4 billion in second quarter 2004 to a yield of 6.60 percent on an average balance of $72.5 billion in third quarter 2005. With ARM yields in the 5.5 percent range at quarter-end, we held ARMs at yields that were more than 1 percent higher than the average yield on all the ARMs sold since second quarter 2004,” said Atkins.

Noninterest Income
Noninterest income increased $927 million, or 32 percent, from third quarter 2004. “Double-digit growth in noninterest income reflected strong results across our businesses including double-digit growth in trust and investment fees, card fees, other fees, mortgage banking and strong capital markets results,” said Atkins. Mortgage banking servicing fees in third quarter 2005 included $356 million in mortgage servicing rights (MSRs) valuation allowance release (increase in mortgage banking revenue) compared with $211 million in impairment provision (reduction in mortgage banking revenue) in third quarter 2004.

On a linked-quarter basis, noninterest income increased $498 million. “This increase was driven by solid growth in service charges on deposit accounts, trust and investment fees, card fees, other fees, mortgage banking and trading income, offset by seasonally lower insurance fees and lower net realized gains from debt securities and equity investments,” said Atkins.

Noninterest Expense
Noninterest expense was up $669 million, or 16 percent, from third quarter 2004 and up $335 million, or 29 percent (annualized), on a linked-quarter basis and included $41 million in

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losses on airplane lease write-downs, $25 million for the early adoption of FIN 47, which relates to recognition of obligations associated with the retirement of long-lived assets such as building and leasehold improvements, and $14 million of integration expense. “Expense growth both year-over-year and linked-quarter was driven by increased mortgage production and continued investment in our businesses,” said Atkins. Home Mortgage expenses increased approximately $200 million from third quarter 2004 and $160 million from second quarter 2005 reflecting higher production and application processing costs. During the quarter, we opened 37 new stores, renovated approximately 100 banking stores and added 1,031 new retail bankers. The efficiency ratio was 57.5 percent, improving slightly from both the prior quarter and third quarter 2004.

As required under FAS 123R, we will begin expensing stock options on January 1, 2006. Assuming our 2006 option grant will vest over a three year period and the valuation and number of options will be the same as our February 2005 grant, we anticipate this expense to reduce 2006 earnings per share by approximately $.06.

Credit Quality
"Third quarter credit results were in line with expectations,” said Chief Credit Officer Dave Munio. “Our $300 billion loan portfolio remained well-diversified and experienced good, steady growth across all lending segments.” Third quarter 2005 net charge-offs were $541 million (.73 percent of average loans outstanding, annualized) compared with $454 million (.62 percent) in second quarter 2005 and $407 million (.59 percent) a year ago. The increased losses during third quarter 2005 were driven by increased consumer bankruptcies in advance of the mid-October implementation of bankruptcy reform legislation, continued loan growth and seasoning at Wells Fargo Financial, which has performed consistently with our risk-based pricing model, and a return to modest commercial losses after a net recovery in Wholesale Banking in second quarter 2005.

During the third quarter of 2005, Hurricane Katrina damage affected the Company’s loan portfolios. “The impact is expected to be primarily in the consumer lending area, including our residential real estate, credit card, automobile, and other revolving credit and installment loan portfolios,” said Munio. “These portfolios total approximately $2 billion in loan outstandings in the FEMA-designated impacted areas. We believe the principal balance of loans subject to loss is less than $500 million based on our analysis to date of the existence of insurance coverage, type of loan, location and potential damage to collateral. Based on further analysis of the loss content of these loans, we believe it is prudent to provide an additional $100 million to the allowance for credit losses. Many of the loans are to borrowers where repayment prospects have not yet been determined to be diminished, or are in areas where the properties may have suffered little, if any, damage or may not yet have been inspected. We will continue to refine our estimates as more information becomes available. We currently do not estimate any significant exposure from Hurricane Katrina in our commercial and commercial real estate loan portfolios, totaling about $100 million in loan outstandings in the affected areas. We are still gathering information but, at this point we expect no material effect from Hurricane Rita.”

Total nonperforming assets (NPAs) were $1.49 billion (.50 percent of total loans) at September 30, 2005, compared with $1.39 billion (.46 percent) at June 30, 2005, and $1.57 billion (.56 percent) at September 30, 2004. “NPAs remained at very manageable levels,” said Munio. “Modest levels of new problem loans were largely offset by reductions in inventory in our well-managed workout units. We continued to monitor the level of foreclosed

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residential real estate and repossessed autos but saw no unsatisfactory trends as of quarter end.”

The allowance for credit losses was $4.06 billion at September 30, 2005, and covered nearly two times annualized net credit losses and nearly three times NPAs. “We consider the allowance adequate to cover losses inherent in the loan portfolios at September 30, 2005,” said Munio.

Business Segment Performance
Wells Fargo has three lines of business for management reporting: Community Banking, Wholesale Banking and Wells Fargo Financial. Net income for each was:

	Third Quarter							Nine months ended Sept. 30						,
					%							%
(in millions)	2005		2004		Change			2005		2004		Change
Community Banking	$	1,489	$	1,217		22		$	4,136	$	3,680		12
Wholesale Banking		407		363		12			1,294		1,196		8
Wells Fargo Financial		79		168		(53	)		311		467		(33	)

More financial information about the business segments is on pages 27 and 28.

Community Bankingoffers a complete line of diversified financial products and services for consumers and small businesses including investment, insurance and trust services primarily in 23 midwestern and western states, and mortgage and home equity loans in all 50 states.

Selected Financial Information	Third Quarter						Nine months ended Sept. 30						,
					%						%
(in millions)	2005		2004		Change		2005		2004		Change
Total revenue	$	5,837	$	5,002		17	$	16,660	$	14,893		12
Provision for credit losses		226		183		23		610		574		6
Noninterest expense		3,397		2,954		15		9,904		8,698		14
Net income		1,489		1,217		22		4,136		3,680		12
Average loans (in billions)		184.4		181.8		1		185.9		177.4		5
Average assets (in billions)		299.5		292.1		3		293.3		282.0		4

• Average core deposits up 12 percent from prior year, up 17 percent (annualized) from prior quarter

• Watchfire® GómezPro ranked Wells Fargo number one in consumer online banking

• 7.1 million active online customers, serving 55 percent of consumer checking accounts

• 3.0 million bill pay customers, up from 2.1 million a year ago

• 643,000 active online small business customers, up from 510,000 a year ago

Community Banking reported net income of $1.49 billion, up 22 percent from $1.22 billion in third quarter 2004. Net interest income increased by $70 million, compared with third quarter 2004, primarily due to growth in earning assets and balance sheet repositioning mitigated by net interest margin compression. Noninterest income was up $765 million in third quarter 2005, compared with the same period last year, due to higher mortgage banking revenue and strong growth in card fees, loan fees, deposit service charges, trading income and gains from equity investments. Noninterest expense increased by $443 million, or 15 percent, in third quarter 2005 compared with the same period of 2004, due primarily to increased mortgage production and continued investment in business growth.

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“We’re very pleased with the outstanding operating performance of our businesses serving consumers and small businesses,” said President and COO John Stumpf. “Once again, our financial results reflect the success of our diverse business model and our ability to satisfy all of the financial needs of our customers.”

Regional Banking Highlights

• Record core product sales of 4.3 million, up 13 percent from prior year

• Banker productivity of 5.11 core sales per day, up from 4.92 in the prior quarter

• Net consumer checking accounts up 4.6 percent from prior year

• Wells Fargo Package^SM sales increased 22 percent from prior year, reaching 46 percent of new households

• Loans to small businesses (loans primarily less than $100,000) grew 18 percent from prior year

• Surpassed $200 billion in retail core deposits

Our Regional Banking team achieved another quarter of excellent sales performance,” said Carrie Tolstedt, Group EVP, Regional Banking. “Core product sales were up 13 percent from 2004 with banker productivity at 5.11, up from 4.92 in the prior quarter. Sales of store-based business solutions increased 25 percent from a year ago. Loans to small businesses (loans primarily less than $100,000) grew 18 percent over the prior year. Additionally, we continued to experience strong account and deposit growth. Net consumer checking account growth was up 4.6 percent from the prior year. Retail core deposits were up 10 percent year-over-year, surpassing $200 billion for the first time in our company’s history. This important milestone can be attributed to the efforts of our amazing group of talented team members who work everyday to achieve our vision of helping our customers succeed financially and becoming one of America’s great companies.”

Home Mortgage and Home Equity Highlights

• Mortgage originations of $103 billion, up 51 percent from prior year

• Mortgage applications of $116 billion, up 40 percent from prior year

• Mortgage application pipeline of $66 billion

• Owned mortgage servicing portfolio of $930 billion, up 20 percent from September 30, 2004

• National Home Equity Group portfolio of $71 billion, up 9 percent from September 30, 2004

“Our residential real estate lending businesses continued their strong performance in the third quarter with double-digit growth in applications, originations and servicing portfolio and 9 percent growth in home equity loans over the same period last year,” said Mark Oman, Senior EVP, Home and Consumer Finance Group. “The rise in interest rates during the quarter and the growth in the servicing portfolio resulted in an increase in the mortgage servicing rights asset to $10.7 billion, or 1.31 percent of loans serviced for others, compared with $8.5 billion, or 1.12 percent, at June 30, 2005. Reflecting the increase in fair value of the servicing asset, due principally to an increase in interest rates, a $356 million reversal of the valuation allowance was realized in the quarter.”

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Wholesale Bankingserves customers coast to coast,including middle market banking, corporate banking, commercial real estate, treasury management, asset-based lending, insurance brokerage, foreign exchange, trade services, specialized lending, equipment finance, capital markets activities, and institutional investments.

Selected Financial Information	Third Quarter							Nine months ended Sept. 30							,
					%								%
(in millions)	2005		2004		Change			2005			2004		Change
Total revenue	$	1,482	$	1,254		18		$	4,351		$	3,923		11
Provision (reversal of provision) for credit losses		—		10		(100	)		(6	)		51		—
Noninterest expense		848		678		25			2,343			2,010		17
Net income		407		363		12			1,294			1,196		8
Average loans (in billions)		63.3		53.7		18			61.4			52.0		18
Average assets (in billions)		89.4		77.4		16			87.5			76.3		15

• Net income up 12 percent from prior year

• Revenue up 18 percent from prior year

• Average loans up 18 percent from prior year; up 13 percent (annualized) from prior quarter

• Global Financeranked Wells Fargo Best Corporate/Institutional Internet Bank in the U.S. for 2005

Wholesale Banking reported net income of $407 million, up 12 percent from a year ago. Revenue was $1.48 billion, up 18 percent from $1.25 billion in third quarter 2004, driven by higher capital markets revenue and the impact of the Strong Financial acquisition. Noninterest expense was up 25 percent from the prior year, primarily due to the impact of the Strong Financial acquisition and the write-down of certain aircraft leases due to bankruptcy filings. Average loans increased 18 percent to $63.3 billion from third quarter 2004, with double-digit loan growth across all wholesale lending businesses.

“Our team achieved solid results in a very competitive market by focusing on our customers,” said Dave Hoyt, Senior EVP, Wholesale Banking. “We experienced another quarter of double-digit year-over-year profit and revenue growth. Loan growth was strong, up 18 percent over the prior year and 13 percent (annualized) over the last quarter. Credit quality remained very strong. Commercial real estate overall performed well. We acquired the assets of Regulus West’s wholesale lockbox operations to complete the largest image-equipped wholesale lockbox network in the nation.

“We continue to adapt new technology to help our customers with leading-edge products they need to manage their businesses faster and easier. Using Desktop Deposit^SM—the first Check 21 browser-based electronic deposit solution to reach the market — and our other electronic deposit services, customers have deposited more than one million checks directly from their offices in the few months since we introduced the services.”

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Wells Fargo Financialoffers consumer loans primarily through real estate-secured debt consolidation products, automobile financing, consumer and private-label credit cards and commercial services to consumers and businesses throughout the United States and in Canada, Latin America, the Caribbean, and the Pacific Rim.

Selected Financial Information	Third Quarter							Nine months ended Sept. 30						,
					%							%
(in millions)	2005		2004		Change			2005		2004		Change
Total revenue	$	1,184	$	1,062		11		$	3,446	$	3,075		12
Provision for credit losses		415		215		93			1,076		627		72
Noninterest expense		644		588		10			1,888		1,718		10
Net income		79		168		(53	)		311		467		(33	)
Average loans (in billions)		47.9		38.8		23			45.6		36.3		26
Average assets (in billions)		53.5		44.3		21			51.5		41.5		24

• Revenue up 11 percent from prior year

• Average loans up 23 percent from prior year

o Real estate-secured receivables up 43 percent to $17.3 billion

o Auto finance receivables up 15 percent to $23.5 billion

Wells Fargo Financial reported net income of $79 million, compared with $168 million in third quarter 2004. Revenue was $1.18 billion, up 11 percent from $1.06 billion in third quarter 2004. Average loans increased 23 percent to $47.9 billion from $38.8 billion a year ago. Noninterest expense increased 10 percent to $644 million from $588 million in third quarter 2004. The increases in provision expense for the quarter and year to date compared with the prior year represent specific events, such as the impact of Hurricane Katrina, the effect of the Federal Financial Institutions Examination Council (FFIEC) loss recognition changes adopted first quarter 2005 and expected increased losses driven by portfolio growth, and are not indicative of a shift in borrower risk profile.

“Hurricane Katrina had a substantial financial impact on Wells Fargo Financial during the quarter, but the larger concern was the human toll the disaster had on so many people,” said Tom Shippee, Wells Fargo Financial president and CEO. “Our first concern was our team members and our customers, who we worked with during this time to provide a moratorium on payments for at least 90 days. During the quarter, we added $100 million to our allowance for estimated losses related to Hurricane Katrina and growth in our portfolios. Despite that expense, our third quarter results were strong, with overall receivables up 23 percent year-over-year, primarily driven by our real estate and auto lending units. Real estate-secured receivables increased 43 percent from a year ago, and auto receivables grew 15 percent year-over-year.

“In July, we announced the integration of the Wells Fargo Auto Finance Group and Wells Fargo Financial Acceptance, a move designed to leverage the expertise and resources of the two automobile financing businesses to better serve both the retail and wholesale segments of the automobile financing industry. The consolidated business, now known as Wells Fargo Auto Finance, is managed by Wells Fargo Financial and will serve more than 20,000 franchised automobile dealers across North America when the integration is complete later this year. Combined, the new Wells Fargo Auto Finance has more than $20 billion in receivables, making it the second-largest noncaptive indirect auto originator in the U.S. We’re excited about this strategic integration. We made significant strides in the integration process during the third quarter, and we expect to be positioned to fully leverage the resources of the new

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Wells Fargo Auto Finance to satisfy more of our customers’ needs. This move enables us to serve the full credit spectrum of customers with indirect financing through dealers, vehicle lease financing and direct-to-consumer loan products.”

Recorded Message
A recorded message reviewing Wells Fargo’s results will be available at 5:30 a.m. Pacific Time through October 21, 2005. Dial 800-642-1687 (domestic) or 706-645-9291 (international). Access code 9953898. The call is also available on the internet atwww.wellsfargo.com/ir andwww.vcall.com.

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements about the Company. Forward-looking statements consist of descriptions of plans or objectives for future operations, products or services, forecasts of revenues, earnings or other measures of economic performance, and assumptions underlying or relating to any of the foregoing. Because forward-looking statements discuss future events or conditions and not historical facts, they often include words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” or similar expressions. Examples of forward-looking statements in this release include statements about (i) the expected impact of Hurricane Katrina on our loan portfolios, including the principal balance of loans believed to be subject to loss and the expected loss content of these loans, (ii) the expected impact of Hurricane Rita, (iii) the expected impact of expensing stock options on our 2006 earnings per share, and (iv) future credit losses and credit quality.

Do not unduly rely on forward-looking statements. They give the Company’s expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them to reflect changes that occur after that date.

There are a number of factors—many beyond the Company’s control—that could cause results to differ significantly from the Company’s expectations. Factors such as credit, market, operational, liquidity, interest rate and other risks are described in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, and Annual Report on Form 10-K for the year ended December 31, 2004, including information incorporated into the Form 10-K from the Company’s 2004 Annual Report to Stockholders, filed as Exhibit 13 to the Form 10-K. See, for example, “Financial Review—Risk Management” included in the 2004 Annual Report to Stockholders and incorporated by reference into the Form 10-K.

Other factors described in the Form 10-K include • business and economic conditions • fiscal and monetary policies • legislation and regulation including the Patriot Act and the Sarbanes-Oxley Act • customers choosing not to use banks for transactions or choosing to take money out of the bank and investing it in the stock market or elsewhere • competition generally and in light of the Gramm-Leach-Bliley Act • potential dividend restrictions • market acceptance and regulatory approval of new products and services • non-banking activities • reliance on other companies for infrastructure components • integration of acquired companies • attracting and retaining key personnel • stock price volatility. See, for example, “Factors That May Affect Future Results” in the June 30, 2005 Form 10-Q.

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Hurricane Katrina has affected the Company’s loan portfolios by damaging properties pledged as collateral and by impairing the ability of certain borrowers to repay their loans. The ultimate impact of the hurricane on the Company is difficult to predict and will be affected by a number of factors, including the extent of damage to the collateral, the extent to which damaged collateral is not covered by insurance, and the extent to which unemployment and other economic conditions caused by the hurricane adversely affect the ability of borrowers to repay their loans. The impact of the hurricane on the Company may be greater than anticipated.

Any factor described in this news release, in the Form 10-K, or in any information incorporated by reference therein, could, by itself or together with one or more other factors, adversely affect the Company’s business, earnings and/or financial condition.

Wells Fargo & Company is a diversified financial services company with $453 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, “Aaa,” from Moody’s Investors Service.

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Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

	Quarter ended Sept. 30					,	%			Nine months ended Sept. 30					,	%
(in millions, except per share amounts)	2005			2004			Change			2005			2004			Change
For the Period
Net income	$	1,975		$	1,748			13	%	$	5,741		$	5,229			10	%
Diluted earnings per common share		1.16			1.02			14			3.36			3.05			10
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.75	%		1.66	%		5			1.75	%		1.72	%		2
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.72			19.34			2			19.70			19.74			—
Efficiency ratio (1)		57.5			57.7			—			57.8			57.6			—
Total revenue	$	8,503		$	7,318			16		$	24,457		$	21,891			12
Dividends declared per common share		.52			.48			8			1.48			1.38			7
Average common shares outstanding		1,686.8			1,688.9			—			1,689.9			1,692.1			—
Diluted average common shares outstanding		1,705.3			1,708.7			—			1,709.3			1,712.7			—
Average loans	$	295,611		$	274,255			8		$	292,874		$	265,676			10
Average assets		448,159			419,636			7			438,143			405,649			8
Average core deposits (2)		247,187			225,027			10			239,171			221,046			8
Average retail core deposits (3)		205,078			186,175			10			198,881			181,677			9
Net interest margin		4.86	%		4.89	%		(1	)		4.87	%		4.89	%		—
At Period End
Securities available for sale	$	34,480		$	35,121			(2	)	$	34,480		$	35,121			(2	)
Loans		296,189			279,310			6			296,189			279,310			6
Allowance for loan losses		3,886			3,782			3			3,886			3,782			3
Goodwill		10,776			10,431			3			10,776			10,431			3
Assets		453,494			421,549			8			453,494			421,549			8
Core deposits (2)		248,384			224,946			10			248,384			224,946			10
Stockholders’ equity		39,835			36,680			9			39,835			36,680			9
Capital ratios
Stockholders’ equity to assets		8.78	%		8.70	%		1			8.78	%		8.70	%		1
Risk-based capital (4)
Tier 1 capital		8.34			8.40			(1	)		8.34			8.40			(1	)
Total capital		11.82			12.15			(3	)		11.82			12.15			(3	)
Tier 1 leverage (4)		7.16			6.97			3			7.16			6.97			3
Book value per common share	$	23.74		$	21.71			9		$	23.74		$	21.71			9
Team members (active, full-time equivalent)		151,300			143,700			5			151,300			143,700			5
Common Stock Price
High	$	62.87		$	59.86			5		$	62.87		$	59.86			5
Low		58.00			56.12			3			57.77			54.32			6
Period end		58.57			59.63			(2	)		58.57			59.63			(2	)

(1)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Core deposits consist of noninterest-bearing deposits, interest-bearing checking, savings certificates and market rate and other savings.
(3)	Retail core deposits consist of total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(4)	The September 30, 2005 ratios are preliminary.

-13-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions, except per share amounts)	2005			2005			2005			2004			2004
For the Quarter
Net income	$	1,975		$	1,910		$	1,856		$	1,785		$	1,748
Diluted earnings per common share		1.16			1.12			1.08			1.04			1.02
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.75	%		1.76	%		1.75	%		1.67	%		1.66	%
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.72			19.76			19.60			19.07			19.34
Efficiency ratio (1)		57.5			57.9			58.0			60.9			57.7
Total revenue	$	8,503		$	7,865		$	8,089		$	8,168		$	7,318
Dividends declared per common share		.52			.48			.48			.48			.48
Average common shares outstanding		1,686.8			1,687.7			1,695.4			1,692.7			1,688.9
Diluted average common shares outstanding		1,705.3			1,707.2			1,715.7			1,715.0			1,708.7
Average loans	$	295,611		$	295,636		$	287,282		$	281,167		$	274,255
Average assets		448,159			435,091			430,990			425,259			419,636
Average core deposits (2)		247,187			238,308			231,847			230,249			225,027
Average retail core deposits (3)		205,078			198,805			192,621			189,788			186,175
Net interest margin		4.86	%		4.89	%		4.87	%		4.88	%		4.89	%
At Quarter End
Securities available for sale	$	34,480		$	29,216		$	31,685		$	33,717		$	35,121
Loans		296,189			301,739			290,588			287,586			279,310
Allowance for loan losses		3,886			3,775			3,783			3,762			3,782
Goodwill		10,776			10,647			10,645			10,681			10,431
Assets		453,494			434,981			435,643			427,849			421,549
Core deposits (2)		248,384			239,615			234,984			229,703			224,946
Stockholders’ equity		39,835			39,278			38,477			37,866			36,680
Capital ratios
Stockholders’ equity to assets		8.78	%		9.03	%		8.83	%		8.85	%		8.70	%
Risk-based capital (4)
Tier 1 capital		8.34			8.57			8.40			8.41			8.40
Total capital		11.82			12.17			12.37			12.07			12.15
Tier 1 leverage (4)		7.16			7.28			7.17			7.08			6.97
Book value per common share	$	23.74		$	23.30		$	22.76		$	22.36		$	21.71
Team members (active, full-time equivalent)		151,300			148,600			147,000			145,500			143,700
Common Stock Price
High	$	62.87		$	62.22		$	62.75		$	64.04		$	59.86
Low		58.00			57.77			58.15			57.55			56.12
Period end		58.57			61.58			59.80			62.15			59.63

(1)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Core deposits consist of noninterest-bearing deposits, interest-bearing checking, savings certificates and market rate and other savings.
(3)	Retail core deposits consist of total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.
(4)	The September 30, 2005 ratios are preliminary.

-14-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Sept. 30					,	%			Nine months ended Sept. 30				,	%
(in millions, except per share amounts)	2005			2004			Change			2005		2004			Change
INTEREST INCOME
Trading assets	$	44		$	38			16	%	$	142	$	111			28	%
Securities available for sale		442			496			(11	)		1,327		1,398			(5	)
Mortgages held for sale		674			490			38			1,585		1,294			22
Loans held for sale		9			76			(88	)		136		205			(34	)
Loans		5,416			4,271			27			15,359		12,239			25
Other interest income		60			34			76			169		85			99
Total interest income		6,645			5,405			23			18,718		15,332			22
INTEREST EXPENSE
Deposits		1,000			487			105			2,517		1,251			101
Short-term borrowings		189			105			80			502		227			121
Long-term debt		780			395			97			2,034		1,160			75
Total interest expense		1,969			987			99			5,053		2,638			92
NET INTEREST INCOME		4,676			4,418			6			13,665		12,694			8
Provision for credit losses		641			408			57			1,680		1,252			34
Net interest income after provision for credit losses		4,035			4,010			1			11,985		11,442			5
NONINTEREST INCOME
Service charges on deposit accounts		654			618			6			1,857		1,823			2
Trust and investment fees		614			508			21			1,813		1,573			15
Card fees		377			319			18			1,064		909			17
Other fees		520			452			15			1,451		1,300			12
Mortgage banking		743			262			184			1,794		1,070			68
Operating leases		202			207			(2	)		612		625			(2	)
Insurance		248			264			(6	)		943		928			2
Net gains (losses) on debt securities available for sale		(31	)		10			—			4		(18	)		—
Net gains from equity investments		146			48			204			418		224			87
Other		354			212			67			836		763			10
Total noninterest income		3,827			2,900			32			10,792		9,197			17
NONINTEREST EXPENSE
Salaries		1,571			1,383			14			4,602		3,955			16
Incentive compensation		676			449			51			1,703		1,281			33
Employee benefits		467			390			20			1,446		1,273			14
Equipment		306			254			20			939		826			14
Net occupancy		354			309			15			1,068		907			18
Operating leases		159			158			1			474		469			1
Other		1,356			1,277			6			3,903		3,891			—
Total noninterest expense		4,889			4,220			16			14,135		12,602			12
INCOME BEFORE INCOME TAX EXPENSE		2,973			2,690			11			8,642		8,037			8
Income tax expense		998			942			6			2,901		2,808			3
NET INCOME	$	1,975		$	1,748			13		$	5,741	$	5,229			10
EARNINGS PER COMMON SHARE	$	1.17		$	1.03			14		$	3.40	$	3.09			10
DILUTED EARNINGS PER COMMON SHARE	$	1.16		$	1.02			14		$	3.36	$	3.05			10
DIVIDENDS DECLARED PER COMMON SHARE	$	.52		$	.48			8		$	1.48	$	1.38			7
Average common shares outstanding		1,686.8			1,688.9			—			1,689.9		1,692.1			—
Diluted average common shares outstanding		1,705.3			1,708.7			—			1,709.3		1,712.7			—

-15-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions, except per share amounts)	2005			2005			2005			2004			2004
INTEREST INCOME
Trading assets	$	44		$	54		$	44		$	34		$	38
Securities available for sale		442			429			456			485			496
Mortgages held for sale		674			481			430			443			490
Loans held for sale		9			15			112			87			76
Loans		5,416			5,163			4,780			4,542			4,271
Other interest income		60			58			51			44			34
Total interest income		6,645			6,200			5,873			5,635			5,405
INTEREST EXPENSE
Deposits		1,000			825			692			576			487
Short-term borrowings		189			164			149			126			105
Long-term debt		780			675			579			477			395
Total interest expense		1,969			1,664			1,420			1,179			987
NET INTEREST INCOME		4,676			4,536			4,453			4,456			4,418
Provision for credit losses		641			454			585			465			408
Net interest income after provision for credit losses		4,035			4,082			3,868			3,991			4,010
NONINTEREST INCOME
Service charges on deposit accounts		654			625			578			594			618
Trust and investment fees		614			597			602			543			508
Card fees		377			361			326			321			319
Other fees		520			478			453			479			452
Mortgage banking		743			237			814			790			262
Operating leases		202			202			208			211			207
Insurance		248			358			337			265			264
Net gains (losses) on debt securities available for sale		(31	)		39			(4	)		3			10
Net gains from equity investments		146			201			71			170			48
Other		354			231			251			336			212
Total noninterest income		3,827			3,329			3,636			3,712			2,900
NONINTEREST EXPENSE
Salaries		1,571			1,551			1,480			1,438			1,383
Incentive compensation		676			562			465			526			449
Employee benefits		467			432			547			451			390
Equipment		306			263			370			410			254
Net occupancy		354			310			404			301			309
Operating leases		159			157			158			164			158
Other		1,356			1,279			1,268			1,681			1,277
Total noninterest expense		4,889			4,554			4,692			4,971			4,220
INCOME BEFORE INCOME TAX EXPENSE		2,973			2,857			2,812			2,732			2,690
Income tax expense		998			947			956			947			942
NET INCOME	$	1,975		$	1,910		$	1,856		$	1,785		$	1,748
EARNINGS PER COMMON SHARE	$	1.17		$	1.14		$	1.09		$	1.06		$	1.03
DILUTED EARNINGS PER COMMON SHARE	$	1.16		$	1.12		$	1.08		$	1.04		$	1.02
DIVIDENDS DECLARED PER COMMON SHARE	$	.52		$	.48		$	.48		$	.48		$	.48
Average common shares outstanding		1,686.8			1,687.7			1,695.4			1,692.7			1,688.9
Diluted average common shares outstanding		1,705.3			1,707.2			1,715.7			1,715.0			1,708.7

-16-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

										% Change
										Sept. 30, 2005 from
	Sept. 30		,	Dec. 31		,	Sept. 30		,	Dec. 31		,	Sept. 30		,
(in millions, except shares)	2005			2004			2004			2004			2004
ASSETS
Cash and due from banks	$	13,931		$	12,903		$	13,249			8	%		5	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		5,861			5,020			5,029			17			17
Trading assets		8,477			9,000			8,107			(6	)		5
Securities available for sale		34,480			33,717			35,121			2			(2	)
Mortgages held for sale		46,119			29,723			30,783			55			50
Loans held for sale		629			8,739			8,434			(93	)		(93	)
Loans		296,189			287,586			279,310			3			6
Allowance for loan losses		(3,886	)		(3,762	)		(3,782	)		3			3
Net loans		292,303			283,824			275,528			3			6
Mortgage servicing rights, net		10,711			7,901			7,768			36			38
Premises and equipment, net		4,223			3,850			3,722			10			13
Goodwill		10,776			10,681			10,431			1			3
Other assets		25,984			22,491			23,377			16			11
Total assets	$	453,494		$	427,849		$	421,549			6			8
LIABILITIES
Noninterest-bearing deposits	$	89,304		$	81,082		$	79,090			10			13
Interest-bearing deposits		199,725			193,776			189,697			3			5
Total deposits		289,029			274,858			268,787			5			8
Short-term borrowings		23,243			21,962			24,278			6			(4	)
Accrued expenses and other liabilities		22,795			19,583			20,484			16			11
Long-term debt		78,592			73,580			71,320			7			10
Total liabilities		413,659			389,983			384,869			6			7
STOCKHOLDERS’ EQUITY
Preferred stock		389			270			325			44			20
Common stock — $1-2/3 par value, authorized 6,000,000,000 shares; issued 1,736,381,025 shares		2,894			2,894			2,894			—			—
Additional paid-in capital		9,878			9,806			9,767			1			1
Retained earnings		29,636			26,482			25,564			12			16
Cumulative other comprehensive income		721			950			914			(24	)		(21	)
Treasury stock — 57,210,620 shares, 41,789,388 shares and 46,042,180 shares		(3,267	)		(2,247	)		(2,436	)		45			34
Unearned ESOP shares		(416	)		(289	)		(348	)		44			20
Total stockholders’ equity		39,835			37,866			36,680			5			9
Total liabilities and stockholders’ equity	$	453,494		$	427,849		$	421,549			6			8

-17-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
ASSETS
Cash and due from banks	$	13,931		$	13,962		$	13,467		$	12,903		$	13,249
Federal funds sold, securities purchased under resale agreements and other short-term investments		5,861			5,661			4,784			5,020			5,029
Trading assets		8,477			8,019			8,487			9,000			8,107
Securities available for sale		34,480			29,216			31,685			33,717			35,121
Mortgages held for sale		46,119			31,733			38,724			29,723			30,783
Loans held for sale		629			651			1,769			8,739			8,434
Loans		296,189			301,739			290,588			287,586			279,310
Allowance for loan losses		(3,886	)		(3,775	)		(3,783	)		(3,762	)		(3,782	)
Net loans		292,303			297,964			286,805			283,824			275,528
Mortgage servicing rights, net		10,711			8,498			8,972			7,901			7,768
Premises and equipment, net		4,223			4,156			3,898			3,850			3,722
Goodwill		10,776			10,647			10,645			10,681			10,431
Other assets		25,984			24,474			26,407			22,491			23,377
Total assets	$	453,494		$	434,981		$	435,643		$	427,849		$	421,549
LIABILITIES
Noninterest-bearing deposits	$	89,304		$	86,791		$	82,872		$	81,082		$	79,090
Interest-bearing deposits		199,725			188,222			190,291			193,776			189,697
Total deposits		289,029			275,013			273,163			274,858			268,787
Short-term borrowings		23,243			17,905			24,451			21,962			24,278
Accrued expenses and other liabilities		22,795			19,930			22,649			19,583			20,484
Long-term debt		78,592			82,855			76,903			73,580			71,320
Total liabilities		413,659			395,703			397,166			389,983			384,869
STOCKHOLDERS’ EQUITY
Preferred stock		389			462			535			270			325
Common stock		2,894			2,894			2,894			2,894			2,894
Additional paid-in capital		9,878			9,862			9,843			9,806			9,767
Retained earnings		29,636			28,567			27,512			26,482			25,564
Cumulative other comprehensive income		721			771			693			950			914
Treasury stock		(3,267	)		(2,784	)		(2,428	)		(2,247	)		(2,436	)
Unearned ESOP shares		(416	)		(494	)		(572	)		(289	)		(348	)
Total stockholders’ equity		39,835			39,278			38,477			37,866			36,680
Total liabilities and stockholders’ equity	$	453,494		$	434,981		$	435,643		$	427,849		$	421,549

-18-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	5,647		$	5,653		$	5,334		$	4,967		$	4,864
Trading assets		4,782			6,289			5,525			5,040			4,869
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,042			964			930			1,101			1,132
Securities of U.S. states and political subdivisions		3,321			3,434			3,572			3,624			3,586
Mortgage-backed securities:
Federal agencies		17,815			17,616			20,079			21,916			22,965
Private collateralized mortgage obligations		4,245			4,181			3,993			3,787			3,836
Total mortgage-backed securities		22,060			21,797			24,072			25,703			26,801
Other debt securities (1)		3,888			3,249			3,388			3,246			3,443
Total debt securities available for sale (1)		30,311			29,444			31,962			33,674			34,962
Mortgages held for sale		47,510			34,554			31,636			32,373			34,844
Loans held for sale		626			1,255			9,062			8,536			8,276
Loans:
Commercial and commercial real estate:
Commercial		59,434			57,749			55,178			51,896			49,517
Other real estate mortgage		28,614			29,504			29,869			29,412			29,025
Real estate construction		12,259			9,814			9,178			9,246			8,949
Lease financing		5,252			5,176			5,126			5,109			5,084
Total commercial and commercial real estate		105,559			102,243			99,351			95,663			92,575
Consumer:
Real estate 1-4 family first mortgage		72,479			79,533			84,589			86,389			88,689
Real estate 1-4 family junior lien mortgage		56,412			54,771			53,059			50,909			46,367
Credit card		10,867			10,285			10,157			9,706			8,948
Other revolving credit and installment		45,380			44,406			35,887			34,475			34,168
Total consumer		185,138			188,995			183,692			181,479			178,172
Foreign		4,914			4,398			4,239			4,025			3,508
Total loans (2)		295,611			295,636			287,282			281,167			274,255
Other		1,511			1,677			1,726			1,698			1,683
Total earning assets	$	385,998		$	374,508		$	372,527		$	367,455		$	363,753
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	3,698		$	3,561		$	3,365		$	3,244		$	3,017
Market rate and other savings		129,390			128,333			127,346			125,350			124,090
Savings certificates		23,434			20,932			19,487			18,697			18,490
Other time deposits		22,204			26,378			28,814			30,460			36,089
Deposits in foreign offices		12,359			8,871			10,095			10,026			8,856
Total interest-bearing deposits		191,085			188,075			189,107			187,777			190,542
Short-term borrowings		22,797			22,687			25,434			26,315			29,840
Long-term debt		82,840			78,781			75,680			70,646			65,443
Total interest-bearing liabilities		296,722			289,543			290,221			284,738			285,825
Portion of noninterest-bearing funding sources		89,276			84,965			82,306			82,717			77,928
Total funding sources	$	385,998		$	374,508		$	372,527		$	367,455		$	363,753
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,100		$	12,991		$	13,090		$	13,366		$	12,704
Goodwill		10,736			10,646			10,657			10,436			10,431
Other		38,325			36,946			34,716			34,002			32,748
Total noninterest-earning assets	$	62,161		$	60,583		$	58,463		$	57,804		$	55,883
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	90,665		$	85,482		$	81,649		$	82,958		$	79,430
Other liabilities		21,074			21,348			20,739			20,336			18,435
Stockholders’ equity		39,698			38,718			38,381			37,227			35,946
Noninterest-bearing funding sources used to fund earning assets		(89,276	)		(84,965	)		(82,306	)		(82,717	)		(77,928	)
Net noninterest-bearing funding sources	$	62,161		$	60,583		$	58,463		$	57,804		$	55,883
TOTAL ASSETS	$	448,159		$	435,091		$	430,990		$	425,259		$	419,636

(1)	Includes certain preferred securities.
(2)	Nonaccrual loans are included in their respective loan categories.

-19-

Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

	Nine months ended Sept. 30					,
(in millions)	2005			2004
Balance, beginning of period	$	37,866		$	34,469
Net income		5,741			5,229
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		6			4
Change in valuation allowance related to:
Investment securities and other retained interests		(316	)		(16	)
Derivative instruments and hedging activities		81			(12	)
Common stock issued		938			1,045
Common stock issued for acquisitions		122			9
Common stock repurchased		(2,343	)		(1,909	)
Preferred stock released to ESOP		244			210
Common stock dividends		(2,505	)		(2,337	)
Other, net		1			(12	)
Balance, end of period	$	39,835		$	36,680

-20-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
Commercial and commercial real estate:
Commercial	$	60,588		$	58,877		$	56,245		$	54,517		$	50,750
Other real estate mortgage		28,571			28,282			29,941			29,804			29,406
Real estate construction		12,587			11,589			9,392			9,025			9,211
Lease financing		5,244			5,195			5,121			5,169			5,075
Total commercial and commercial real estate		106,990			103,943			100,699			98,515			94,442
Consumer:
Real estate 1-4 family first mortgage		69,259			81,615			77,281			87,686			87,587
Real estate 1-4 family junior lien mortgage		57,491			55,989			53,867			52,190			49,557
Credit card		11,060			10,608			10,128			10,260			9,439
Other revolving credit and installment		46,201			44,974			44,250			34,725			34,435
Total consumer		184,011			193,186			185,526			184,861			181,018
Foreign		5,188			4,610			4,363			4,210			3,850
Total loans (net of unearned income)	$	296,189		$	301,739		$	290,588		$	287,586		$	279,310

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	293		$	338		$	357		$	345		$	382
Other real estate mortgage		197			193			191			229			258
Real estate construction		43			44			51			57			59
Lease financing		68			51			59			68			54
Total commercial and commercial real estate		601			626			658			699			753
Consumer:
Real estate 1-4 family first mortgage		409			357			327			386			360
Real estate 1-4 family junior lien mortgage		119			98			101			92			93
Other revolving credit and installment		149			101			87			160			155
Total consumer		677			556			515			638			608
Foreign		23			20			23			21			16
Total nonaccrual loans		1,301			1,202			1,196			1,358			1,377
As a percentage of total loans		.44	%		.40	%		.41	%		.47	%		.49	%
Foreclosed assets		187			187			207			212			190
Real estate investments		2			2			2			2			2
Total nonaccrual loans and other assets	$	1,490		$	1,391		$	1,405		$	1,572		$	1,569
As a percentage of total loans		.50	%		.46	%		.48	%		.55	%		.56	%

-21-

Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES

	Quarter ended									Nine months ended
	Sept. 30		,	June 30		,	Sept. 30		,	Sept. 30		,	Sept. 30		,
(in millions)	2005			2005			2004			2005			2004
Balance, beginning of period	$	3,944		$	3,950		$	3,940		$	3,950		$	3,891
Provision for credit losses		641			454			408			1,680			1,252
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(95	)		(92	)		(98	)		(271	)		(321	)
Other real estate mortgage		(1	)		(2	)		(4	)		(6	)		(18	)
Real estate construction		(1	)		—			(1	)		(6	)		(4	)
Lease financing		(7	)		(10	)		(24	)		(27	)		(48	)
Total commercial and commercial real estate		(104	)		(104	)		(127	)		(310	)		(391	)
Consumer:
Real estate 1-4 family first mortgage		(24	)		(23	)		(14	)		(83	)		(38	)
Real estate 1-4 family junior lien mortgage		(37	)		(30	)		(20	)		(100	)		(76	)
Credit card		(128	)		(134	)		(109	)		(389	)		(337	)
Other revolving credit and installment		(369	)		(296	)		(233	)		(1,015	)		(669	)
Total consumer		(558	)		(483	)		(376	)		(1,587	)		(1,120	)
Foreign		(72	)		(63	)		(37	)		(216	)		(95	)
Total loan charge-offs		(734	)		(650	)		(540	)		(2,113	)		(1,606	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		35			37			31			102			117
Other real estate mortgage		4			1			8			13			14
Real estate construction		—			7			3			7			5
Lease financing		5			6			7			16			19
Total commercial and commercial real estate		44			51			49			138			155
Consumer:
Real estate 1-4 family first mortgage		6			6			1			15			4
Real estate 1-4 family junior lien mortgage		8			8			6			22			17
Credit card		20			23			15			64			45
Other revolving credit and installment		97			90			56			250			167
Total consumer		131			127			78			351			233
Foreign		18			18			6			44			17
Total loan recoveries		193			196			133			533			405
Net loan charge-offs		(541	)		(454	)		(407	)		(1,580	)		(1,201	)
Other		13			(6	)		4			7			3
Balance, end of period	$	4,057		$	3,944		$	3,945		$	4,057		$	3,945
Components:
Allowance for loan losses	$	3,886		$	3,775		$	3,782		$	3,886		$	3,782
Reserve for unfunded credit commitments		171			169			163			171			163
Allowance for credit losses	$	4,057		$	3,944		$	3,945		$	4,057		$	3,945
Net loan charge-offs (annualized) as a percentage of average total loans		.73	%		.62	%		.59	%		.72	%		.60	%

-22-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
Balance, beginning of quarter	$	3,944		$	3,950		$	3,950		$	3,945		$	3,940
Provision for credit losses		641			454			585			465			408
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(95	)		(92	)		(84	)		(103	)		(98	)
Other real estate mortgage		(1	)		(2	)		(3	)		(7	)		(4	)
Real estate construction		(1	)		—			(5	)		(1	)		(1	)
Lease financing		(7	)		(10	)		(10	)		(14	)		(24	)
Total commercial and commercial real estate		(104	)		(104	)		(102	)		(125	)		(127	)
Consumer:
Real estate 1-4 family first mortgage		(24	)		(23	)		(36	)		(15	)		(14	)
Real estate 1-4 family junior lien mortgage		(37	)		(30	)		(33	)		(31	)		(20	)
Credit card		(128	)		(134	)		(127	)		(126	)		(109	)
Other revolving credit and installment		(369	)		(296	)		(350	)		(250	)		(233	)
Total consumer		(558	)		(483	)		(546	)		(422	)		(376	)
Foreign		(72	)		(63	)		(81	)		(48	)		(37	)
Total loan charge-offs		(734	)		(650	)		(729	)		(595	)		(540	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		35			37			30			33			31
Other real estate mortgage		4			1			8			3			8
Real estate construction		—			7			—			1			3
Lease financing		5			6			5			7			7
Total commercial and commercial real estate		44			51			43			44			49
Consumer:
Real estate 1-4 family first mortgage		6			6			3			2			1
Real estate 1-4 family junior lien mortgage		8			8			6			7			6
Credit card		20			23			21			17			15
Other revolving credit and installment		97			90			63			53			56
Total consumer		131			127			93			79			78
Foreign		18			18			8			7			6
Total loan recoveries		193			196			144			130			133
Net loan charge-offs		(541	)		(454	)		(585	)		(465	)		(407	)
Other		13			(6	)		—			5			4
Balance, end of quarter	$	4,057		$	3,944		$	3,950		$	3,950		$	3,945
Components:
Allowance for loan losses	$	3,886		$	3,775		$	3,783		$	3,762		$	3,782
Reserve for unfunded credit commitments		171			169			167			188			163
Allowance for credit losses	$	4,057		$	3,944		$	3,950		$	3,950		$	3,945
Net loan charge-offs (annualized) as a percentage of average total loans		.73	%		.62	%		.83	%		.66	%		.59	%
Allowance for loan losses:
As a percentage of total loans		1.31	%		1.25	%		1.30	%		1.31	%		1.35	%
As a percentage of nonaccrual loans		299			314			316			277			275
As a percentage of nonaccrual loans and other assets		261			271			269			239			241
Allowance for credit losses:
As a percentage of total loans		1.37	%		1.31	%		1.36	%		1.37	%		1.41	%
As a percentage of nonaccrual loans		312			328			330			291			286
As a percentage of nonaccrual loans and other assets		272			284			281			251			251

-23-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended Sept. 30					,	%			Nine months ended Sept. 30				,	%
(in millions)	2005			2004			Change			2005		2004			Change
Service charges on deposit accounts	$	654		$	618			6	%	$	1,857	$	1,823			2	%
Trust and investment fees:
Trust, investment and IRA fees		473			366			29			1,374		1,124			22
Commissions and all other fees		141			142			(1	)		439		449			(2	)
Total trust and investment fees		614			508			21			1,813		1,573			15
Card fees		377			319			18			1,064		909			17
Other fees:
Cash network fees		45			47			(4	)		135		136			(1	)
Charges and fees on loans		280			234			20			785		669			17
All other		195			171			14			531		495			7
Total other fees		520			452			15			1,451		1,300			12
Mortgage banking:
Servicing fees, net of amortization and provision for impairment		373			(24	)		—			730		603			21
Net gains on mortgage loan origination/sales activities		273			212			29			816		258			216
All other		97			74			31			248		209			19
Total mortgage banking		743			262			184			1,794		1,070			68
Operating leases		202			207			(2	)		612		625			(2	)
Insurance		248			264			(6	)		943		928			2
Trading assets		184			94			96			391		338			16
Net gains (losses) on debt securities available for sale		(31	)		10			—			4		(18	)		—
Net gains from equity investments		146			48			204			418		224			87
Net gains on sales of loans		3			3			—			3		7			(57	)
Net gains on dispositions of operations		1			—			—			2		2			—
All other		166			115			44			440		416			6
Total	$	3,827		$	2,900		��	32		$	10,792	$	9,197			17

NONINTEREST EXPENSE

	Quarter ended Sept. 30					,	%			Nine months ended Sept. 30					,	%
(in millions)	2005			2004			Change			2005			2004			Change
Salaries	$	1,571		$	1,383			14	%	$	4,602		$	3,955			16	%
Incentive compensation		676			449			51			1,703			1,281			33
Employee benefits		467			390			20			1,446			1,273			14
Equipment		306			254			20			939			826			14
Net occupancy		354			309			15			1,068			907			18
Operating leases		159			158			1			474			469			1
Outside professional services		230			165			39			582			440			32
Contract services		163			154			6			443			454			(2	)
Advertising and promotion		128			113			13			334			315			6
Travel and entertainment		120			110			9			347			312			11
Outside data processing		114			109			5			341			314			9
Telecommunications		74			73			1			213			216			(1	)
Postage		72			63			14			212			201			5
Charitable donations		8			7			14			48			24			100
Insurance		17			47			(64	)		196			214			(8	)
Stationery and supplies		48			57			(16	)		148			177			(16	)
Operating losses		52			45			16			156			144			8
Net losses (gains) from debt extinguishment		(1	)		—			—			(1	)		176			—
Security		42			40			5			125			120			4
Core deposit intangibles		30			33			(9	)		93			101			(8	)
All other		259			261			(1	)		666			683			(2	)
Total	$	4,889		$	4,220			16		$	14,135		$	12,602			12

-24-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
Service charges on deposit accounts	$	654		$	625		$	578		$	594		$	618
Trust and investment fees:
Trust, investment and IRA fees		473			456			445			385			366
Commissions and all other fees		141			141			157			158			142
Total trust and investment fees		614			597			602			543			508
Card fees		377			361			326			321			319
Other fees:
Cash network fees		45			47			43			44			47
Charges and fees on loans		280			260			245			252			234
All other		195			171			165			183			171
Total other fees		520			478			453			479			452
Mortgage banking:
Servicing fees, net of amortization and provision for impairment		373			(99	)		456			434			(24	)
Net gains on mortgage loan origination/sales activities		273			250			293			281			212
All other		97			86			65			75			74
Total mortgage banking		743			237			814			790			262
Operating leases		202			202			208			211			207
Insurance		248			358			337			265			264
Trading assets		184			64			143			185			94
Net gains (losses) on debt securities available for sale		(31	)		39			(4	)		3			10
Net gains from equity investments		146			201			71			170			48
Net gains (losses) on sales of loans		3			39			(39	)		4			3
Net gains (losses) on dispositions of operations		1			—			1			(17	)		—
All other		166			128			146			164			115
Total	$	3,827		$	3,329		$	3,636		$	3,712		$	2,900

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
Salaries	$	1,571		$	1,551		$	1,480		$	1,438		$	1,383
Incentive compensation		676			562			465			526			449
Employee benefits		467			432			547			451			390
Equipment		306			263			370			410			254
Net occupancy		354			310			404			301			309
Operating leases		159			157			158			164			158
Outside professional services		230			189			163			229			165
Contract services		163			141			139			172			154
Advertising and promotion		128			117			89			144			113
Travel and entertainment		120			117			110			130			110
Outside data processing		114			121			106			104			109
Telecommunications		74			67			72			80			73
Postage		72			68			72			68			63
Charitable donations		8			18			22			224			7
Insurance		17			100			79			33			47
Stationery and supplies		48			55			45			63			57
Operating losses		52			26			78			48			45
Net losses (gains) from debt extinguishment		(1	)		1			(1	)		(2	)		—
Security		42			42			41			41			40
Core deposit intangibles		30			31			32			33			33
All other		259			186			221			314			261
Total	$	4,889		$	4,554		$	4,692		$	4,971		$	4,220

-25-

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS)(1)(2)

	Quarter ended Sept. 30																	,
	2005									2004
							Interest									Interest
	Average			Yields		/	income		/	Average			Yields		/	income		/
(in millions)	balance			rates			expense			balance			rates			expense
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	5,647			3.17	%	$	45		$	4,864			1.47	%	$	18
Trading assets		4,782			3.68			44			4,869			3.10			38
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,042			3.70			10			1,132			4.39			12
Securities of U.S. states and political subdivisions		3,321			8.12			63			3,586			7.85			67
Mortgage-backed securities:
Federal agencies		17,815			6.08			264			22,965			6.02			335
Private collateralized mortgage obligations		4,245			5.63			59			3,836			5.12			48
Total mortgage-backed securities		22,060			5.99			323			26,801			5.89			383
Other debt securities (4)		3,888			7.21			68			3,443			7.60			58
Total debt securities available for sale (4)		30,311			6.29			464			34,962			6.19			520
Mortgages held for sale (3)		47,510			5.68			674			34,844			5.61			490
Loans held for sale (3)		626			5.86			9			8,276			3.68			76
Loans:
Commercial and commercial real estate:
Commercial		59,434			6.83			1,023			49,517			5.61			698
Other real estate mortgage		28,614			6.42			464			29,025			5.37			391
Real estate construction		12,259			6.64			204			8,949			5.29			119
Lease financing		5,252			5.74			75			5,084			6.23			79
Total commercial and commercial real estate		105,559			6.64			1,766			92,575			5.53			1,287
Consumer:
Real estate 1-4 family first mortgage		72,479			6.60			1,201			88,689			5.54			1,231
Real estate 1-4 family junior lien mortgage		56,412			6.71			954			46,367			5.07			591
Credit card		10,867			12.38			336			8,948			12.00			269
Other revolving credit and installment		45,380			8.72			998			34,168			8.99			771
Total consumer		185,138			7.49			3,489			178,172			6.40			2,862
Foreign		4,914			13.35			164			3,508			14.24			124
Total loans (5)		295,611			7.29			5,419			274,255			6.21			4,273
Other		1,511			3.83			16			1,683			3.81			17
Total earning assets	$	385,998			6.89			6,671		$	363,753			5.97			5,432
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	3,698			1.50			13		$	3,017			.47			4
Market rate and other savings		129,390			1.57			513			124,090			.68			213
Savings certificates		23,434			2.98			176			18,490			2.24			105
Other time deposits		22,204			3.48			196			36,089			1.47			133
Deposits in foreign offices		12,359			3.28			102			8,856			1.44			32
Total interest-bearing deposits		191,085			2.08			1,000			190,542			1.02			487
Short-term borrowings		22,797			3.28			189			29,840			1.41			105
Long-term debt		82,840			3.75			780			65,443			2.41			395
Total interest-bearing liabilities		296,722			2.64			1,969			285,825			1.38			987
Portion of noninterest-bearing funding sources		89,276			—			—			77,928			—			—
Total funding sources	$	385,998			2.03			1,969		$	363,753			1.08			987
Net interest margin and net interest income on a taxable-equivalent basis(6)					4.86	%	$	4,702						4.89	%	$	4,445
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,100								$	12,704
Goodwill		10,736									10,431
Other		38,325									32,748
Total noninterest-earning assets	$	62,161								$	55,883
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	90,665								$	79,430
Other liabilities		21,074									18,435
Stockholders’ equity		39,698									35,946
Noninterest-bearing funding sources used to fund earning assets		(89,276	)								(77,928	)
Net noninterest-bearing funding sources	$	62,161								$	55,883
TOTAL ASSETS	$	448,159								$	419,636

(1)	Our average prime rate was 6.42% and 4.42% for the quarters ended September 30, 2005 and 2004, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 3.77% and 1.75% for the same quarters, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

-26-

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Nine months ended Sept. 30																		,
	2005										2004
								Interest									Interest
	Average			Yields		/		income		/	Average			Yields		/	income		/
(in millions)	balance			rates				expense			balance			rates			expense
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	5,546			2.81	%		$	117		$	4,015			1.28	%	$	38
Trading assets		5,529			3.43				142			5,369			2.76			111
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		979			3.78				28			1,182			4.16			36
Securities of U.S. states and political subdivisions		3,441			8.28				202			3,460			7.90			196
Mortgage-backed securities:
Federal agencies		18,495			6.06				815			21,232			6.02			927
Private collateralized mortgage obligations		4,140			5.55				169			3,543			5.10			131
Total mortgage-backed securities		22,635			5.97				984			24,775			5.88			1,058
Other debt securities (4)		3,511			7.25				184			3,444			7.66			177
Total debt securities available for sale (4)		30,566			6.30				1,398			32,861			6.21			1,467
Mortgages held for sale (3)		37,958			5.57				1,585			32,226			5.35			1,294
Loans held for sale (3)		3,617			5.02				136			8,088			3.39			205
Loans:
Commercial and commercial real estate:
Commercial		57,469			6.55				2,816			48,515			5.71			2,074
Other real estate mortgage		29,325			6.14				1,347			28,472			5.24			1,116
Real estate construction		10,428			6.43				501			8,548			5.12			328
Lease financing		5,185			5.97				232			5,055			6.37			241
Total commercial and commercial real estate		102,407			6.39		��		4,896			90,590			5.54			3,759
Consumer:
Real estate 1-4 family first mortgage		78,822			6.31				3,725			88,140			5.36			3,539
Real estate 1-4 family junior lien mortgage		54,760			6.38				2,612			42,235			5.03			1,591
Credit card		10,439			12.16				952			8,599			11.89			767
Other revolving credit and installment		41,926			8.68				2,723			33,211			9.02			2,243
Total consumer		185,947			7.19				10,012			172,185			6.31			8,140
Foreign		4,520			13.66				462			2,901			15.91			346
Total loans (5)		292,874			7.01				15,370			265,676			6.15			12,245
Other		1,637			4.30				52			1,712			3.68			48
Total earning assets	$	377,727			6.66				18,800		$	349,947			5.90			15,408
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	3,543			1.29				34		$	2,997			.35			8
Market rate and other savings		128,364			1.31				1,255			121,048			.64			576
Savings certificates		21,299			2.74				437			18,902			2.24			317
Other time deposits		25,775			2.95				569			29,510			1.25			275
Deposits in foreign offices		10,450			2.85				222			8,446			1.19			75
Total interest-bearing deposits		189,431			1.78				2,517			180,903			.92			1,251
Short-term borrowings		23,629			2.84				502			26,067			1.16			227
Long-term debt		79,126			3.43				2,034			66,976			2.31			1,160
Total interest-bearing liabilities		292,186			2.31				5,053			273,946			1.29			2,638
Portion of noninterest-bearing funding sources		85,541			—				—			76,001			—			—
Total funding sources	$	377,727			1.79				5,053		$	349,947			1.01			2,638
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.87	%		$	13,747						4.89	%	$	12,770
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,060									$	12,950
Goodwill		10,680										10,412
Other		36,676										32,340
Total noninterest-earning assets	$	60,416									$	55,702
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	85,965									$	78,099
Other liabilities		21,055										18,237
Stockholders’ equity		38,937										35,367
Noninterest-bearing funding sources used to fund earning assets		(85,541	)									(76,001	)
Net noninterest-bearing funding sources	$	60,416									$	55,702
TOTAL ASSETS	$	438,143									$	405,649

(1)	Our average prime rate was 5.93% and 4.14% for the nine months ended September 30, 2005 and 2004, respectively. The average three-month LIBOR was 3.30% and 1.39% for the same periods, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

-27-

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)

(income/expense in millions,	Community				Wholesale					Wells Fargo									Consolidated
average balances in billions)	Banking				Banking					Financial				Other (2				)	Company
Quarter ended September 30,		2005		2004		2005			2004		2005		2004		2005		2004			2005		2004
Net interest income	$	3,210	$	3,140	$	597		$	531	$	869	$	747	$	—	$	—		$	4,676	$	4,418
Provision for credit losses		226		183		—			10		415		215		—		—			641		408
Noninterest income		2,627		1,862		885			723		315		315		—		—			3,827		2,900
Noninterest expense		3,397		2,954		848			678		644		588		—		—			4,889		4,220
Income before income tax expense		2,214		1,865		634			566		125		259		—		—			2,973		2,690
Income tax expense		725		648		227			203		46		91		—		—			998		942
Net income	$	1,489	$	1,217	$	407		$	363	$	79	$	168	$	—	$	—		$	1,975	$	1,748
Average loans	$	184.4	$	181.8	$	63.3		$	53.7	$	47.9	$	38.8	$	—	$	—		$	295.6	$	274.3
Average assets		299.5		292.1		89.4			77.4		53.5		44.3		5.8		5.8			448.2		419.6
Average core deposits		223.5		199.6		23.6			25.3		.1		.1		—		—			247.2		225.0
Nine months ended September 30,
Net interest income	$	9,426	$	8,903	$	1,750		$	1,652	$	2,489	$	2,139	$	—	$	—		$	13,665	$	12,694
Provision (reversal of provision) for credit losses		610		574		(6	)		51		1,076		627		—		—			1,680		1,252
Noninterest income		7,234		5,990		2,601			2,271		957		936		—		—			10,792		9,197
Noninterest expense		9,904		8,698		2,343			2,010		1,888		1,718		—		176			14,135		12,602
Income (loss) before income tax expense (benefit)		6,146		5,621		2,014			1,862		482		730		—		(176	)		8,642		8,037
Income tax expense (benefit)		2,010		1,941		720			666		171		263		—		(62	)		2,901		2,808
Net income (loss)	$	4,136	$	3,680	$	1,294		$	1,196	$	311	$	467	$	—	$	(114	)	$	5,741	$	5,229
Average loans	$	185.9	$	177.4	$	61.4		$	52.0	$	45.6	$	36.3	$	—	$	—		$	292.9	$	265.7
Average assets		293.3		282.0		87.5			76.3		51.5		41.5		5.8		5.8			438.1		405.6
Average core deposits		214.9		195.6		24.3			25.3		—		.1		—		—			239.2		221.0

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. If the management structure and/or the allocation process changes, allocations, transfers and assignments may change. To reflect the realignment of the automobile financing business within Wells Fargo Financial in third quarter 2005, results for prior periods have been revised.

(2)

The noninterest expense item for the nine months ended September 30, 2004 is a $176 million loss on debt extinguishment recorded at the enterprise level. Average assets consist of unallocated goodwill held at the enterprise level.

-28-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(income/expense in millions, average balances in billions)	2005			2005			2005			2004			2004
COMMUNITY BANKING
Net interest income	$	3,210		$	3,124		$	3,092		$	3,116		$	3,140
Provision for credit losses		226			197			187			213			183
Noninterest income		2,627			2,126			2,481			2,584			1,862
Noninterest expense		3,397			3,190			3,317			3,614			2,954
Income before income tax expense		2,214			1,863			2,069			1,873			1,865
Income tax expense		725			595			690			641			648
Net income	$	1,489		$	1,268		$	1,379		$	1,232		$	1,217
Average loans	$	184.4		$	189.2		$	183.9		$	183.2		$	181.8
Average assets		299.5			290.0			290.4			290.5			292.1
Average core deposits		223.5			214.5			206.2			204.0			199.6
WHOLESALE BANKING
Net interest income	$	597		$	588		$	565		$	557		$	531
Provision (reversal of provision) for credit losses		—			(10	)		4			11			10
Noninterest income		885			871			845			799			723
Noninterest expense		848			750			745			718			678
Income before income tax expense		634			719			661			627			566
Income tax expense		227			257			236			224			203
Net income	$	407		$	462		$	425		$	403		$	363
Average loans	$	63.3		$	61.3		$	59.5		$	56.4		$	53.7
Average assets		89.4			88.0			85.1			81.6			77.4
Average core deposits		23.6			23.8			25.6			26.1			25.3
WELLS FARGO FINANCIAL
Net interest income	$	869		$	824		$	796		$	783		$	747
Provision for credit losses		415			267			394			241			215
Noninterest income		315			332			310			329			315
Noninterest expense		644			614			630			639			588
Income before income tax expense		125			275			82			232			259
Income tax expense		46			95			30			82			91
Net income	$	79		$	180		$	52		$	150		$	168
Average loans	$	47.9		$	45.1		$	43.9		$	41.6		$	38.8
Average assets		53.5			51.3			49.7			47.4			44.3
Average core deposits		.1			—			—			.1			.1
OTHER(2)
Average assets	$	5.8		$	5.8		$	5.8		$	5.8		$	5.8
CONSOLIDATED COMPANY
Net interest income	$	4,676		$	4,536		$	4,453		$	4,456		$	4,418
Provision for credit losses		641			454			585			465			408
Noninterest income		3,827			3,329			3,636			3,712			2,900
Noninterest expense		4,889			4,554			4,692			4,971			4,220
Income before income tax expense		2,973			2,857			2,812			2,732			2,690
Income tax expense		998			947			956			947			942
Net income	$	1,975		$	1,910		$	1,856		$	1,785		$	1,748
Average loans	$	295.6		$	295.6		$	287.3		$	281.2		$	274.3
Average assets		448.2			435.1			431.0			425.3			419.6
Average core deposits		247.2			238.3			231.8			230.2			225.0

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. If the management structure and/or the allocation process changes, allocations, transfers and assignments may change. To reflect the realignment of the automobile financing business within Wells Fargo Financial in third quarter 2005, results for prior periods have been revised.

(2)

There are no reconciling items for net income, average loans or average assets for the periods presented. Average assets consist of unallocated goodwill held at the enterprise level.

-29-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
Mortgage servicing rights:
Balance, beginning of quarter	$	10,096		$	10,266		$	9,466		$	9,567		$	10,100
Originations		850			529			385			369			465
Purchases		783			453			535			358			261
Amortization		(542	)		(493	)		(470	)		(473	)		(411	)
Other (includes changes in mortgage servicing rights due to hedging)		766			(659	)		350			(355	)		(848	)
Balance, end of quarter	$	11,953		$	10,096		$	10,266		$	9,466		$	9,567
Valuation allowance:
Balance, beginning of quarter	$	1,598		$	1,294		$	1,565		$	1,799		$	1,588
Provision (reversal of provision) for mortgage servicing rights in excess of fair value		(356	)		304			(271	)		(234	)		211
Balance, end of quarter	$	1,242		$	1,598		$	1,294		$	1,565		$	1,799
Mortgage servicing rights, net	$	10,711		$	8,498		$	8,972		$	7,901		$	7,768
Ratio of mortgage servicing rights to related loans serviced for others		1.31	%		1.12	%		1.24	%		1.15	%		1.18	%

	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in billions)	2005			2005			2005			2004			2004
Managed servicing portfolio:
Loans serviced for others (1)	$	815		$	761		$	724		$	688		$	659
Owned loans serviced (2)		115			113			116			117			118
Total owned servicing		930			874			840			805			777
Sub-servicing		29			32			33			27			32
Total managed servicing portfolio	$	959		$	906		$	873		$	832		$	809
Weighted-average note rate (owned servicing only)		5.71	%		5.75	%		5.75	%		5.75	%		5.75	%

(1)	Consists of 1-4 family first mortgages and commercial mortgage loans.
(2)	Consists of mortgages held for sale and 1-4 family first mortgage loans.

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in millions)	2005			2005			2005			2004			2004
Servicing fees, net of amortization and provision for impairment:
Servicing fees and other	$	619		$	593		$	570		$	534		$	517
Amortization		(542	)		(493	)		(470	)		(473	)		(411	)
Reversal of provision (provision) for mortgage servicing rights in excess of fair value		356			(304	)		271			234			(211	)
Net derivative gains (losses) (1)		(60	)		105			85			139			81
Total servicing fees, net of amortization and impairment	$	373		$	(99	)	$	456		$	434		$	(24	)

(1) Net derivative gains (losses) included in total net servicing fees related to mortgage servicing rights hedging activities consist of gains (losses) excluded from the evaluation of hedge effectiveness and the ineffective portion of the change in the value of these derivatives. Gains and losses excluded from the evaluation of hedge effectiveness are those caused by market conditions (volatility) and the spread between spot and forward rates priced into the derivative contracts (the passage of time).

-30-

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION AND SERVICING DATA

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in billions)	2005			2005			2005			2004			2004
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	116		$	117		$	91		$	80		$	83
Refinances as a percentage of applications		43	%		42	%		41	%		44	%		36	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	66		$	73		$	59		$	50		$	55

	Quarter ended
	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,
(in billions)	2005			2005			2005			2004			2004
Residential Real Estate Originations:(1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	42		$	36		$	27		$	30		$	29
Correspondent/Wholesale		48			37			27			28			27
Home equity loans and lines		10			9			8			9			10
Wells Fargo Financial		3			3			3			2			2
Total	$	103		$	85		$	65		$	69		$	68
Year-to-date	$	253		$	150		$	65		$	298		$	229

(1) Consists of residential real estate originations from all Wells Fargo channels.