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

Exhibit 99

Media	Investors
Melissa Murray	Bob Strickland	Jim Rowe
(415) 396-4417	(415) 396-0523	(415) 396-8216

Wednesday, July 16, 2008

WELLS FARGO EARNS $1.8 BILLION ON RECORD REVENUE;

INCREASES DIVIDEND 10%

• Net income of $1.8 billion compared with $2.3 billion a year ago

• Diluted earnings per share of $0.53 compared with $0.67 a year ago

• Record revenue of $11.5 billion, up 16 percent from prior year and 34 percent (annualized) from prior quarter

• Record cross-sell for both retail and commercial customers

• Provision for credit losses of $3.0 billion (including reserve build of $1.5 billion)

• Positive operating leverage (revenue growth of 16 percent; expense growth of 2 percent from prior year)

• Average loans up 18 percent from prior year and 8 percent (annualized) from prior quarter

• Average earning assets up 20 percent from prior year and 15 percent (annualized) from prior quarter

• Net interest margin of 4.92 percent, up 23 basis points from prior quarter

• Tier 1 capital of 8.24 percent, up from 7.92 percent at March 31, 2008, and 7.59 percent at December 31, 2007

Selected Financial Information	Quarter ended
	June 30,			March 31,			June 30,
	2008			2008			2007
Earnings
Diluted earnings per share	$	0.53		$	0.60		$	0.67
Net income (in billions)		1.75			2.00			2.28
Asset Quality
Net charge-offs as % of avg. total loans		1.55	%		1.60	%		0.87	%
Nonperforming loans as % of total loans		1.02			0.84			0.51
Allowance as a % of total loans		1.88			1.56			1.17
Other
Revenue (in billions)	$	11.46		$	10.56		$	9.89
Average loans (in billions)		391.5			383.9			332.0
Average core deposits (in billions)		318.4			317.3			300.5
Net interest margin		4.92	%		4.69	%		4.89	%

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SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $0.53 for second quarter 2008 compared with $0.60 in first quarter 2008 and $0.67 in second quarter 2007. Net income was $1.75 billion compared with $2.00 billion in first quarter 2008 and $2.28 billion in second quarter 2007. The Company also announced a quarterly common stock dividend of 34 cents per share, up 10 percent from the previous dividend of 31 cents per share.

“Wells Fargo continued to strengthen its franchise during the second quarter,” said President and CEO John Stumpf. “Earnings per share were 14 cents below that of last year due to $2.3 billion of higher provision expense, including a credit reserve build of $1.5 billion (30 cents per share). We were able to lend more to current customers where we believed it was prudent and properly priced. We grew core deposits while reducing funding costs. We achieved record cross-sell results with our retail and commercial customers – a testament to our relationship-based strategy and our 160,000 team members who serve our customers. We are open for business and getting lots of it. We also continued to benefit from opportunities in this environment to gain new business and customers through selective acquisitions. We maintained a strong balance sheet and, for the 21^st consecutive year, increased our dividend. We’re still affected by the weak economy, but we believe we’re one of the best positioned in financial services to grow through this adversity and to build an even stronger company for our team members, customers, communities and shareholders.”

Financial Performance
“Wells Fargo continued to profitably build its franchise this quarter, at a time when many in our industry are primarily focused on fixing rather than growing their companies,” said Chief Financial Officer Howard Atkins. “Despite a $3 billion provision for loan losses in the quarter – including a $1.5 billion credit reserve build – the Company earned a $1.8 billion quarterly profit, generated a return on equity of 14.6 percent, increased Tier 1 capital in the quarter by 32 basis points to 8.24 percent, and increased the combination of capital and loan loss allowance to 9.7 percent of average earning assets from 9.1 percent linked quarter. The continued profitable growth in our franchise is reflected in the growth of our pre-tax pre-provision income to $5.6 billion, up $1.4 billion, or 34 percent, from a year ago, driven by a 20 percent increase in earning assets, a 16 percent increase in revenue, a 10 percent increase in noninterest income, record cross-sell of 5.64 products in our retail business and 6.3 products in our commercial business, an increase in the net interest margin to 4.92 percent, up 23 basis points linked quarter, and an increase in operating leverage, with expenses up only 2 percent versus 16 percent revenue growth.

“In broad terms, the credit crisis has created incremental earnings opportunities for Wells Fargo largely offsetting our incremental charge-offs from the crisis. Year-to-date total net interest income, for example, was up $1.8 billion from the first half of 2007, roughly equal to the increase in net charge-offs for the same period, even after adjusting charge-offs for the impact of our National Home Equity Group’s new charge-off policy. Few other large financial institutions have had the capacity to realize the opportunities generated by the credit crisis, and if opportunities to add attractive assets, add new customers and gain market share and wallet share continue, the long-term benefits could very well last beyond the peak in credit costs.”

As a result of the Company’s performance and confidence in long-term growth, the Board of Directors increased the Company’s third quarter common stock dividend to $0.34 per share, an increase of 10 percent from the second quarter dividend of $0.31 per share.

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Revenue
Revenue was a record $11.5 billion, up $1.6 billion, or 16 percent, from a year ago, on strong, double-digit growth in both net interest income and noninterest income. “Because of the opportunities to gain new business and new customers, gain more business from existing customers and add earning assets with better risk-adjusted spreads, our revenue growth through second quarter 2008 was higher in the midst of the credit crisis than it was before this crisis, ” said Atkins. Businesses that achieved double-digit, year-over-year revenue growth were broad-based and included asset-based lending, credit cards, diversified products, mortgage banking, Small Business Administration lending, insurance, international, specialized financial services and wealth management.

Loans
Average loans of $391.5 billion increased $59.6 billion, or 18 percent, from a year ago. On a linked-quarter basis, average loans grew $7.6 billion, or 8 percent (annualized). Average commercial and commercial real estate loans increased $33.9 billion, or 27 percent, from second quarter 2007 and increased $7.3 billion, or 19 percent (annualized), from first quarter 2008, making this the 15^th consecutive quarter of double-digit, year-over-year growth. Average consumer loans increased $25.5 billion, or 13 percent, from second quarter 2007, but were essentially flat linked quarter. “We’re lending to credit-worthy consumer and commercial customers, but continuing to exit, curtail or re-price higher risk and lower risk-adjusted return segments,” said Atkins.

Deposits
Average core deposits of $318.4 billion increased $17.8 billion, or 6 percent, from a year ago and $1.1 billion, or 1 percent (annualized), linked quarter. Average mortgage escrow deposits were $22.7 billion, down $680 million from second quarter 2007 and up $2.3 billion linked quarter. Average retail core deposits grew $10.3 billion, or 5 percent, from second quarter 2007 and increased $1.9 billion, or 3 percent (annualized), linked quarter. Average consumer checking accounts grew a net 5.5 percent from second quarter 2007. Wholesale deposits were up 14 percent year over year, but declined modestly linked quarter.

Net Interest Income
Net interest income increased $1.1 billion, or 21 percent, from last year and $518 million, or 36 percent (annualized), linked quarter. The increase was driven by double-digit earning asset growth (up 20 percent year over year and 15 percent (annualized) linked quarter) combined with an increase in the net interest margin to 4.92 percent, up 23 basis points from first quarter and 3 basis points from a year ago. “The improvement in net interest margin reflects our focus on higher risk-adjusted yields on new loans and securities, a decline in funding costs, our disciplined deposit pricing, and the high percentage of checking and transaction accounts in our core deposit mix,” said Atkins. “The effect of the industry-wide credit write-offs and the economic slowdown have been largely offset by earning asset growth and improved spreads across most asset classes and a steeper yield curve compared with a year ago.”

Noninterest Income
Noninterest income rose to $5.2 billion, up 10 percent from second quarter 2007, and increased $378 million linked quarter. Fee income was broad-based across the Company. Deposit service charges increased 8 percent on solid deposit growth. Despite the 15 percent decline in the S&P500^® year over year, trust and investment fees declined only 9 percent and were flat linked quarter. Card fees were up 14 percent year over year and 22 percent (annualized) linked quarter

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due to continued growth in new accounts and greater card activity. Insurance fees were up 27 percent year over year due to customer growth, higher crop insurance revenues and the fourth quarter 2007 acquisition of ABD Insurance, and 37 percent (annualized) linked quarter due to seasonally higher revenues, primarily from crop insurance. Charges and fees on loans were relatively flat, reflecting an increase in commercial loan fees due to strong loan demand offset by lower home equity fees due to the Company’s efforts to curtail risk in that business.

Net gains on mortgage loan origination/sales activities increased $609 million linked quarter due to wider margins, lower levels of additions to the repurchase reserve, lower write-downs of repurchased mortgage loans, an increase in the value of commercial mortgages held for sale, and an increase in the servicing value of the mortgage warehouse/pipeline. These improvements were largely driven by higher interest rates and more stable liquidity in the mortgage market during the second quarter. Second quarter results included a $65 million net reduction in the value of the mortgage servicing rights (MSRs) from market-related valuation changes, net of hedge results (reflected in net servicing income). On a linked-quarter basis, the value of interest-only investments associated with the Wells Fargo Home Mortgage (Home Mortgage) servicing portfolio increased $247 million (reflected in trading income) and gains on debt securities declined $414 million.

Noninterest income also included $129 million of other-than-temporary impairment charges, which were largely recorded in net losses on debt securities. Equity investment gains were only $46 million in second quarter, down $196 million from last year and down $267 million linked quarter, which included our gain from the Visa initial public offering. Unrealized net losses on securities available for sale were $2.1 billion at June 30, 2008, compared with unrealized net losses of $598 million at March 31, 2008. The change in the value was largely due to the increase in market yields of mortgage-backed securities during the quarter.

Noninterest Expense
Noninterest expense increased $133 million, or 2 percent, from second quarter 2007 and increased $398 million linked quarter. Of the linked-quarter increase, $151 million was due to the reversal in the first quarter of previously accrued litigation expense for Visa and $108 million was due to an increase in deferred compensation plan-related expenses, which was offset by an equivalent increase in trading income related to plan asset returns. “During the quarter, we continued to build distribution – opening 19 banking stores and adding sales and service team members – while reducing most non-labor expenses, including year-over-year cost reductions in outside professional services, travel and entertainment, contract services and postage,” said Atkins.

Credit Quality
“Managing the challenges of the current credit cycle continues to be a top priority,” said Chief Credit Officer Mike Loughlin. Second quarter 2008 net charge-offs were $1.5 billion (1.55 percent of average loans, annualized) compared with $1.5 billion (1.60 percent) in first quarter 2008 and $720 million in second quarter 2007 (0.87 percent). The second quarter 2008 provision was $3.0 billion, which included second quarter 2008 net charge-offs of $1.5 billion and an additional $1.5 billion credit reserve build, primarily for expected higher losses in the National Home Equity Group (Home Equity) and the unsecured retail loan portfolios. As previously announced, the Home Equity charge-off policy changed in the second quarter from 120 days to no more than 180 days to provide more time to work with customers to solve their credit problems and keep them in their homes. The Company has helped nearly 900 customers, and approximately $90 million of Home Equity loans have been modified due to this change. The policy change had

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the effect of deferring an estimated $265 million of charge-offs from the second quarter, but did not reduce provision expense in the second quarter since this loss content was included in the $1.5 billion credit reserve build.

	Quarter ended					Quarter ended
	June 30, 2008					March 31, 2008
	Net loan		As a %			Net loan		As a %
	charge-offs		of average			charge-offs		of average
	(in millions)		loans			(in millions)		loans
Commercial and commercial real estate:
Commercial	$	301		1.27	%	$	228		1.01	%
Other real estate mortgage		4		0.04			3		0.03
Real estate construction		27		0.58			28		0.60
Lease financing		10		0.56			9		0.53
Total commercial and commercial real estate		342		0.85			268		0.70
Consumer:
Real estate 1-4 family first mortgage		96		0.53			75		0.41
Real estate 1-4 family junior lien*		334		1.79			438		2.34
Credit card		329		6.95			275		5.89
Other revolving credit and installment		367		2.68			418		3.01
Total consumer		1,126		2.04			1,206		2.18
Foreign		44		2.36			54		2.94
Total loans	$	1,512		1.55		$	1,528		1.60

* Reflects the impact of the previously disclosed Home Equity charge-off policy change, effective April 1, 2008

Charge-offs in the real estate 1-4 family first mortgage portfolio increased $21 million linked quarter, including the $14 million increase from Wells Fargo Financial’s residential real estate portfolio. “The increase in mortgage loss levels was expected given the continued declines in home prices,” said Loughlin. “Credit card charge-offs increased $54 million in the second quarter, but continued to perform within an expected range. While the loss levels were higher than the historically low levels of recent years, many of our loan products continued to earn acceptable risk-adjusted returns. Losses in the Wells Fargo Financial auto portfolio declined $47 million from first quarter 2008. The process improvements and underwriting changes made in prior quarters continued to produce the desired results, however increased economic stress will place additional pressure on any portfolio closely tied to the consumer.”

Net credit losses in the real estate 1-4 family junior lien category were down $104 million compared with first quarter 2008, primarily due to the change in the Home Equity charge-off policy. “Although losses declined, the portfolio continued to deteriorate as property values search for a bottom,” said Loughlin. “Given the continued decline in home prices, we had more accounts move into the higher combined loan-to-value segments, which directly impacts loss levels.” Approximately 38 percent of our $73 billion core Home Equity portfolio and 71 percent of our $11 billion liquidating Home Equity portfolio had combined loan-to-value ratios above 90 percent as of June 30, 2008. The property values are primarily based on a combination of March 2008 automated value models and May 2008 home price indices. More information about the Home Equity portfolio is available on page 33.

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Commercial and commercial real estate charge-offs increased $74 million linked quarter, including about $30 million from charge-offs on loans originated through Wells Fargo’s Business Direct small business lending group. “Although loss levels have increased, the majority of the wholesale businesses performed well and we continue to see good opportunities in this market,” said Loughlin.

Nonperforming Assets
Total nonperforming assets were $5.23 billion (1.31 percent of total loans) at June 30, 2008, and included $4.07 billion of nonperforming loans, $535 million of insured Government National Mortgage Association (GNMA) loan repurchases, and $619 million of foreclosed and repossessed real estate and vehicles. This compares with $4.50 billion (1.16 percent) at March 31, 2008, consisting of $3.26 billion of nonperforming loans, $578 million of GNMA loan repurchases and $658 million of foreclosed and repossessed assets. “The increases in nonperforming assets continued to be centered in portfolios affected by the residential real estate issues and the associated impact on the consumer,” said Loughlin. “The combination of higher foreclosure rates and less liquidity in the distressed loan sales market caused us to hold more assets on the balance sheet for a longer time. The increase in nonperforming loans was caused in part by our active loss mitigation strategies at Home Equity, Home Mortgage and Wells Fargo Financial. A primary goal of our loan servicing operation is to work with customers to keep them in their homes. We actively work to contact delinquent customers. We gather and analyze information regarding their financial circumstances and can frequently work with customers to modify their loan to improve affordability and allow them to remain in their home. However, accounting conventions require us to classify these restructured loans as nonperforming until the customer demonstrates the ability to make payments under the revised terms. We require six monthly payments before returning the loan to accrual status. We will continue to work with our delinquent customers even though it will cause a continued increase in nonperforming loans.” The Home Equity charge-off policy change also contributed to the increase in nonperforming loans as fewer loans were charged off in the quarter.

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Loans 90 days or more past due and still accruing totaled $7.26 billion, $6.92 billion and $4.99 billion at June 30, 2008, March 31, 2008, and June 30, 2007, respectively. For the same periods, the totals included $5.48 billion, $5.29 billion and $3.91 billion, respectively, in advances pursuant to our servicing agreement to GNMA mortgage pools and similar loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs.

Loans 90 Days or More Past Due and Still Accruing
(Excluding Insured/Guaranteed GNMA and Similar Loans)

	June 30,		Mar. 31,		June 30,
(in millions)	2008		2008		2007
Commercial and commercial real estate:
Commercial	$	16	$	29	$	21
Other real estate mortgage		38		24		2
Real estate construction		81		15		4
Total commercial and commercial real estate		135		68		27
Consumer:
Real estate 1-4 family first mortgage		370		314		179
Real estate 1-4 family junior lien mortgage		236		228		76
Credit card		441		449		253
Other revolving credit and installment		563		532		515
Total consumer		1,610		1,523		1,023
Foreign		35		40		36
Total	$	1,780	$	1,631	$	1,086

Allowance for Credit Losses
The allowance for credit losses, including unfunded commitments, totaled $7.52 billion at June 30, 2008, compared with $6.01 billion at March 31, 2008, and $4.01 billion at June 30, 2007. Second quarter 2008 results included a credit reserve build of $1.5 billion primarily for expected higher credit losses in the loan portfolio. Since the beginning of fourth quarter 2007, the Company has provided $3.4 billion in excess of net charge-offs. “During the quarter, revised estimates for the reserve for unfunded commitments decreased from the prior quarter as our updated evaluation indicated lower loss content from open commitment exposures,” said Loughlin. “We believe the allowance was adequate for losses inherent in the portfolio at June 30, 2008.”

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

	Second Quarter					%
(in millions)	2008			2007		Change
Community Banking	$	1,234		$	1,502		(18	)%
Wholesale Banking		557			621		(10	)
Wells Fargo Financial		(38	)		156	NM

     NM – Not meaningful

More financial information about the business segments is on pages 28 and 29.

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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

	Second Quarter				%
(in millions)	2008		2007		Change
Total revenue	$	7,547	$	6,171		22	%
Provision for credit losses		1,996		353		465
Noninterest expense		3,737		3,590		4
Net income		1,234		1,502		(18	)
(in billions)
Average loans		215.9		186.6		16
Average assets		365.9		319.8		14
Average core deposits		252.6		243.0		4

Community Banking reported net income of $1.2 billion in second quarter 2008, down $268 million from a year ago, affected by the $1.1 billion credit reserve build. Pre-tax pre-provision income (i.e., revenue less operating expense) increased $1.2 billion, or 48 percent from a year ago. Revenue increased $1.4 billion, or 22 percent, driven by strong balance sheet growth and strong fee income growth in retail banking and mortgage. Average loans of $215.9 billion in second quarter 2008 grew 16 percent and average core deposits of $252.6 billion grew 4 percent, with a portion of the growth due to acquisitions. Noninterest income increased $465 million from second quarter 2007 driven by double-digit growth in cards and mortgage banking, and strong growth in deposit service charges. Noninterest expense increased $147 million, or 4 percent, driven by investments in technology, new stores and sales staff, partially offset by continued expense management. The provision for credit losses increased $1.6 billion (including a $1.1 billion credit reserve build) from second quarter 2007, with over half of the increase related to the Home Equity portfolio.

Regional Banking

• Core product solutions (sales) of 5.67 million, up 18 percent from prior year

• Core sales per platform banker FTE (active, full-time equivalent) of 5.24 per day, up from 4.78 in prior year

• Record retail bank household cross-sell of 5.64 products per household; 23 percent of our retail bank households have 8 or more products, our long-term goal

• Sales ofWells Fargo Packages^® (a checking account and at least three other products) up 33 percent from prior year, purchased by 72 percent of new checking account customers

• Consumer checking accounts up a net 5.5 percent from prior year

• Customer loyalty scores up 6 percent and welcoming and wait time scores up 7 percent from prior year (based on customers conducting transactions with tellers)

• Added 1,269 platform banker FTEs from prior year through hiring and acquisitions

• Opened 19 banking stores, bringing our total retail stores to 3,330

• Added 26webATM^® machines bringing network total to 6,950 and converted 24 toEnvelope-Free^SMwebATMmachines, bringing network total to 1,474

• Business Banking

о	Store-based business solutions up 18 percent from prior year
о	Loans to small businesses (loans primarily less than $100,000 on our Business Direct platform) up 10 percent from prior year
о	Business checking accounts up a net 2.4 percent from prior year

'

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о	Business Banking household cross-sell of 3.6 products per household
о	Sales ofWells Fargo Business Services Packages(a business checking account and at least three other business products) up 31 percent from prior year, purchased by 48 percent of new business checking account customers

“Our amazing, hardworking, dedicated team continued to help our customers reach their financial goals by providing 5.67 million core product solutions in the second quarter, up 18 percent from the prior year,” said Carrie Tolstedt, senior EVP, Community Banking. “Of our 23 banking states, 19 had double-digit core product solutions growth from the prior year, and five of those, including California, Texas, and Arizona, had more than 20 percent growth. We focused on small business appreciation during the quarter through community celebrations and customized offers. Sales of store-based business solutions increased an impressive 18 percent from prior year, and sales ofWells Fargo Business Services Packagesrose 31 percent. We continue our focus on the customer experience. For customers transacting at the teller line, welcoming and wait time survey scores were up 50 percent, and customer loyalty scores improved 41 percent, since we began surveying in January 2004. In addition, we’re proud and excited to welcome our new customers and team members from United Bancorporation of Wyoming, which we acquired on July 1, 2008. Wells Fargo is now the largest bank in Wyoming, number one in market share.”

Home Mortgage

• Home Mortgage retail originations of $31 billion, flat from prior year

• Mortgage applications of $100 billion, down 12 percent from prior year

• Mortgage application pipeline of $47 billion, down 16 percent from prior year

• Record owned mortgage servicing portfolio of $1.55 trillion, up 7 percent from prior year and 3 percent (annualized) from prior quarter

“Our mortgage team continued to manage very well through another challenging quarter, and again produced strong results,” said Mark Oman, senior EVP, Home and Consumer Finance Group. “Home Mortgage’s balanced business model positions us well in the current housing environment because its servicing portfolio is a ‘natural business hedge’ of the slowdown in home originations in the quarter. As mortgage rates have increased, and refinancing and purchase activity slowed, our prepayments decline, benefiting our servicing business. Despite the economic slowdown, our servicing portfolio continued to perform relatively well. For our largest product category, prime conventional first mortgages representing 5.6 million customers and over $1 trillion of servicing, 97.5 out of every 100 customers are current with their payments.

“Home Mortgage results reflected our long-term commitment to responsible lending and responsible servicing principles. Our disciplined approach to the business and willingness to give up market share to aggressive competitors when the risks outweighed the returns allowed Home Mortgage to avoid many of the issues our competitors now face. The overall market shift towards a greater percentage of agency and government product has benefited Home Mortgage as we remained focused on these segments even when the industry was rapidly growing the Alt-A and nonprime volume in recent years. Government and agency products represented 95 percent of our second quarter originations.”

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Wealth Management Group

• Revenue up 13 percent from prior year

• Net income up 29 percent from prior year

• Private Bank revenue up 54 percent, net income up 85 percent from prior year

• Private Bank average core deposits up 64 percent, average loans up 28 percent from prior year

• WellsTrade^® revenue up 42 percent from prior year

Online Banking

• 10.6 million active online consumers, up 14 percent from prior year; 67 percent of all consumer checking accounts are online

• 5.2 million online money movement customers, up 17 percent from prior year

• 1.1 million active online small business customers, up 20 percent from prior year

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, corporate trust, capital markets activities and asset management.

Selected Financial Information

	Second Quarter				%
(in millions)	2008		2007		Change
Total revenue	$	2,500	$	2,309		8	%
Provision for credit losses		245		1		NM
Noninterest expense		1,420		1,346		5
Net income		557		621		(10	)
(in billions)
Average loans		107.6		81.4		32
Average assets		149.9		107.3		40
Average core deposits		65.8		57.5		14

   NM – Not meaningful

• Record cross-sell of 6.3 products

• Acquired insurance brokerages in Indiana, California and Missouri

• Acquired premium finance company Flatiron Credit Company, Inc.

• Acquired Transcap Associates, Inc. – factoring and trade finance business

“Current market conditions combined with our relationship banking model are giving us the opportunity to bring in new customers and do more business with our existing customers,” said Dave Hoyt, senior EVP, Wholesale Banking Group. “Our team continues to provide dependable, reliable and innovative financial products and services that businesses nationwide expect from Wells Fargo. We help our customers manage the risks in today’s environment. We now have 6.3 products per wholesale relationship. Our loan balances rose 32 percent and deposits rose 14 percent from the same period last year.

“We’re constantly working to strengthen our electronic infrastructure to compete in the digital world. Based on customer feedback, we added wire transfer services and image positive pay functionality to our patent pendingCEO Mobile^SM service, the only browser-based mobile banking service for commercial customers.”

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Wholesale Banking reported net income of $557 million in second quarter 2008, down $64 million from a year ago partly due to the $143 million credit reserve build. Revenue increased $191 million, driven by strong loan and deposit growth and higher fee income. Average loans grew to $107.6 billion, up 32 percent from a year ago, with double-digit increases across nearly all wholesale lending businesses. Average core deposits were $65.8 billion, up 14 percent from a year ago, all in interest-bearing balances. Noninterest income increased $59 million from second quarter 2007, including higher deposit service charges, foreign exchange, financial products and insurance revenue, offset by a lower level of commercial real estate brokerage and capital markets activity. Noninterest expense increased $74 million from a year ago, mainly due to higher personnel-related costs, including additional team members, as well as insurance commissions and expenses related to higher financial product sales. The provision for credit losses was $245 million, an increase of $244 million from second quarter 2007, and included $102 million from higher net charge-offs and $143 million of additional provision taken to build reserves for the wholesale portfolio.

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, Canada, Puerto Rico and the Pacific Rim.

Selected Financial Information

	Second Quarter					%
(in millions)	2008			2007		Change
Total revenue	$	1,412		$	1,411		--	%
Provision for credit losses		771			366		111
Noninterest expense		703			791		(11	)
Net income (loss)		(38	)		156	NM
(in billions)
Average loans		68.0			64.0		6
Average assets		73.1			69.8		5

   NM – Not meaningful

• Average loans of $68 billion, up 6 percent from second quarter 2007

• Real estate-secured receivables up 16 percent to $28.7 billion

• Auto finance receivables/operating leases down 10 percent to $27.5 billion

“Wells Fargo Financial lost $38 million this quarter reflecting higher credit costs, including a $265 million credit reserve build primarily driven by continued softening in the real estate market,” said Tom Shippee, Wells Fargo Financial CEO. “During the past 18 months, we’ve taken numerous actions to reduce credit risk and, in the process, right-size our expense base by curtailing higher-risk loan products and exiting certain higher-risk/lower-return businesses.

“In the first half of this year, we continued to tighten underwriting standards in our real estate, auto and credit cards businesses to effectively manage risk in this difficult credit environment. Our second quarter U.S. real estate originations were down 36 percent from a year ago and auto originations declined 40 percent as we intentionally shrank the U.S. auto portfolio. Our auto group is focusing on its core business of nonprime and near-prime lending through both the indirect and direct channels. We’re particularly pleased with the growth and performance of our direct auto channel, which we integrated into our consumer store network two years ago and now comprises 30 percent of our new auto originations in the U.S. We’ve decided to stop originating new auto

-12-

leases effective the end of July. Second quarter lease volumes were approximately 6 percent of our total auto volume. The prime auto lease business is no longer a strategic fit for us, partly because the returns are not acceptable. However, we will continue to service our existing lease contracts.”

Second quarter revenue of $1.4 billion was flat from a year ago. Average loans increased 6 percent from second quarter 2007. The provision for credit losses increased $405 million from second quarter 2007, and included $265 million of additional provision taken to build reserves. Noninterest expense declined 11 percent from second quarter 2007.

Recorded Message
A recorded message reviewing Wells Fargo’s results is available at 5:30 a.m. Pacific Time through July 19, 2008. Dial 877-660-6853 (domestic) or 201-612-7415 (international). Enter account number 286 and conference ID 289469. The call is also available on the internet atwww.wellsfargo.com/ir andhttp://www.investorcalendar.com/IC/CEPage.asp?ID=131297.

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

This news release contains forward-looking statements about the Company, including the statements that we believe we are one of the best positioned in financial services to grow through the current adversity and to build an even stronger company for our team members, customers, communities and shareholders, that the long-term benefits of the opportunities generated by the credit crisis to add attractive assets, add new customers and gain market share and wallet share could last beyond the peak in credit costs, and that we expect higher credit losses in the Home Equity and unsecured retail loan portfolios, as well as various statements of our beliefs and expectations for future credit quality and losses. Do not unduly rely on forward-looking statements. They give our expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them to reflect changes that occur after that date.

There are a number of factors that could cause results to differ significantly from our expectations, including further deterioration in the credit quality of our home equity, real estate, auto or other loan portfolios, or in the value of the collateral securing those loans, due to higher interest rates, increased unemployment, declining home or auto values, economic recession or other economic factors. For a discussion of factors that may cause actual results to differ from expectations, refer to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, and our Annual Report on Form 10-K for the year ended December 31, 2007, including information incorporated into the 10-K from our 2007 Annual Report to Stockholders, filed with the Securities and Exchange Commission (SEC) and available on the SEC’s website atwww.sec.gov.

Any factor described in this news release or in any document referred to in this news release 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 $609 billion in assets, providing banking, insurance, investments, mortgage and consumer finance through almost 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the U.S., and one of only two banks worldwide, to have the highest possible credit rating from both Moody’s Investors Service, “Aaa,” and Standard & Poor’s Ratings Services, “AAA.”

# # #

-13-

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

	Quarter ended June 30,							%				Six months ended June 30,						%
($ in millions, except per share amounts)	2008				2007			Change				2008			2007			Change
For the Period
Net income	$	1,753			$	2,279			(23	)	%	$	3,752		$	4,523			(17	)	%
Diluted earnings per common share		0.53				0.67			(21	)			1.13			1.33			(15	)
Profitability ratios (annualized):
Net income to average total assets (ROA)		1.19	%			1.82	%		(35	)			1.29	%		1.85	%		(30	)
Net income to average stockholders’ equity (ROE)		14.58				19.57			(25	)			15.71			19.63			(20	)
Efficiency ratio (1)		51.1				57.9			(12	)			51.4			58.2			(12	)
Total revenue	$	11,459			$	9,891			16			$	22,022		$	19,332			14
Dividends declared per common share		0.31				0.28			11				0.62			0.56			11
Average common shares outstanding		3,309.8				3,351.2			(1	)			3,306.1			3,363.5			(2	)
Diluted average common shares outstanding		3,321.4				3,389.3			(2	)			3,319.6			3,402.5			(2	)
Average loans	$	391,545			$	331,970			18			$	387,732		$	326,729			19
Average assets		594,749				502,686			18				584,871			492,453			19
Average core deposits (2)		318,377				300,535			6				317,827			295,588			8
Average retail core deposits (3)		230,365				220,094			5				229,315			218,528			5
Net interest margin		4.92		%		4.89	%		1				4.81	%		4.92	%		(2	)
At Period End
Securities available for sale	$	91,331			$	72,179			27			$	91,331		$	72,179			27
Loans		399,237				342,800			16				399,237			342,800			16
Allowance for loan losses		7,375				3,820			93				7,375			3,820			93
Goodwill		13,191				11,983			10				13,191			11,983			10
Assets		609,074				539,865			13				609,074			539,865			13
Core deposits (2)		310,410				300,602			3				310,410			300,602			3
Stockholders’ equity		47,964				47,239			2				47,964			47,239			2
Capital ratios:
Stockholders’ equity to assets		7.87		%		8.75	%		(10	)			7.87	%		8.75	%		(10	)
Risk-based capital (4)
Tier 1 capital		8.24				8.55			(4	)			8.24			8.55			(4	)
Total capital		11.23				11.71			(4	)			11.23			11.71			(4	)
Tier 1 leverage (4)		7.35				7.89			(7	)			7.35			7.89			(7	)
Book value per common share	$	14.48			$	14.05			3			$	14.48		$	14.05			3
Team members (active, full-time equivalent)		160,500				158,700			1				160,500			158,700			1
Common Stock Price
High	$	32.40			$	36.49			(11	)		$	34.56		$	36.64			(6	)
Low		23.46				33.93			(31	)			23.46			33.01			(29	)
Period end		23.75				35.17			(32	)			23.75			35.17			(32	)

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(3)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits. To reflect the realignment of our corporate trust business from Community Banking into Wholesale Banking in first quarter 2008, balances for prior periods have been revised.
(4)	The June 30, 2008, ratios are preliminary.

-14-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
($ in millions, except per share amounts)	2008			2008			2007			2007			2007
For the Quarter
Net income	$	1,753		$	1,999		$	1,361		$	2,173		$	2,279
Diluted earnings per common share		0.53			0.60			0.41			0.64			0.67
Profitability ratios (annualized):
Net income to average total assets (ROA)		1.19	%		1.40	%		0.97	%		1.59	%		1.82	%
Net income to average stockholders’ equity (ROE)		14.58			16.86			11.25			18.22			19.57
Efficiency ratio (1)		51.1			51.7			57.8			57.5			57.9
Total revenue	$	11,459		$	10,563		$	10,205		$	9,853		$	9,891
Dividends declared per common share		0.31			0.31			0.31			0.31			0.28
Average common shares outstanding		3,309.8			3,302.4			3,327.6			3,339.6			3,351.2
Diluted average common shares outstanding		3,321.4			3,317.9			3,352.2			3,374.0			3,389.3
Average loans	$	391,545		$	383,919		$	374,372		$	350,683		$	331,970
Average assets		594,749			574,994			555,647			541,533			502,686
Average core deposits (2)		318,377			317,278			314,808			306,135			300,535
Average retail core deposits (3)		230,365			228,448			226,180			220,984			220,094
Net interest margin		4.92	%		4.69	%		4.62	%		4.55	%		4.89	%
At Quarter End
Securities available for sale	$	91,331		$	81,787		$	72,951		$	57,440		$	72,179
Loans		399,237			386,333			382,195			362,922			342,800
Allowance for loan losses		7,375			5,803			5,307			3,829			3,820
Goodwill		13,191			13,148			13,106			12,018			11,983
Assets		609,074			595,221			575,442			548,727			539,865
Core deposits (2)		310,410			327,360			311,731			303,853			300,602
Stockholders’ equity		47,964			48,159			47,628			47,566			47,239
Capital ratios:
Stockholders’ equity to assets		7.87	%		8.09	%		8.28	%		8.67	%		8.75	%
Risk-based capital (4)
Tier 1 capital		8.24			7.92			7.59			8.17			8.55
Total capital		11.23			11.01			10.68			11.07			11.71
Tier 1 leverage (4)		7.35			7.04			6.83			7.26			7.89
Book value per common share	$	14.48		$	14.58		$	14.45		$	14.30		$	14.05
Team members (active, full-time equivalent)		160,500			160,900			159,800			158,800			158,700
Common Stock Price
High	$	32.40		$	34.56		$	37.78		$	37.99		$	36.49
Low		23.46			24.38			29.29			32.66			33.93
Period end		23.75			29.10			30.19			35.62			35.17

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
(3)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits. To reflect the realignment of our corporate trust business from Community Banking into Wholesale Banking in first quarter 2008, balances for prior periods have been revised.
(4)	The June 30, 2008, ratios are preliminary.

-15-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended June 30,						%				Six months ended June 30,					%
(in millions, except per share amounts)	2008			2007			Change				2008		2007			Change
INTEREST INCOME
Trading assets	$	38		$	47			(19	)	%	$	85	$	100			(15	)	%
Securities available for sale		1,224			752			63				2,356		1,438			64
Mortgages held for sale		423			578			(27	)			817		1,108			(26	)
Loans held for sale		10			17			(41	)			22		32			(31	)
Loans		6,806			7,100			(4	)			14,018		13,864			1
Other interest income		46			79			(42	)			98		170			(42	)
Total interest income		8,547			8,573			—				17,396		16,712			4
INTEREST EXPENSE
Deposits		1,063			1,941			(45	)			2,657		3,798			(30	)
Short-term borrowings		357			265			35				782		401			95
Long-term debt		849			1,171			(27	)			1,919		2,307			(17	)
Total interest expense		2,269			3,377			(33	)			5,358		6,506			(18	)
							��
NET INTEREST INCOME		6,278			5,196			21				12,038		10,206			18
Provision for credit losses		3,012			720			318				5,040		1,435			251
Net interest income after provision for credit losses		3,266			4,476			(27	)			6,998		8,771			(20	)
NONINTEREST INCOME
Service charges on deposit accounts		800			740			8				1,548		1,425			9
Trust and investment fees		762			839			(9	)			1,525		1,570			(3	)
Card fees		588			517			14				1,146		987			16
Other fees		511			638			(20	)			1,010		1,149			(12	)
Mortgage banking		1,197			689			74				1,828		1,479			24
Operating leases		120			187			(36	)			263		379			(31	)
Insurance		550			432			27				1,054		831			27
Net gains (losses) on debt securities available for sale		(91	)		(42	)		117				232		(11	)	NM
Net gains from equity investments		46			242			(81	)			359		339			6
Other		698			453			54				1,019		978			4
Total noninterest income		5,181			4,695			10				9,984		9,126			9
NONINTEREST EXPENSE
Salaries		2,030			1,907			6				4,014		3,774			6
Incentive compensation		806			900			(10	)			1,450		1,642			(12	)
Employee benefits		593			581			2				1,180		1,246			(5	)
Equipment		305			292			4				653		629			4
Net occupancy		400			369			8				799		734			9
Operating leases		102			148			(31	)			218		301			(28	)
Other		1,624			1,530			6				3,008		2,927			3
Total noninterest expense		5,860			5,727			2				11,322		11,253			1
INCOME BEFORE INCOME TAX EXPENSE		2,587			3,444			(25	)			5,660		6,644			(15	)
Income tax expense		834			1,165			(28	)			1,908		2,121			(10	)
NET INCOME	$	1,753		$	2,279			(23	)		$	3,752	$	4,523			(17	)
				��
EARNINGS PER COMMON SHARE	$	0.53		$	0.68			(22	)		$	1.13	$	1.34			(16	)
DILUTED EARNINGS PER COMMON SHARE	$	0.53		$	0.67			(21	)		$	1.13	$	1.33			(15	)
DIVIDENDS DECLARED PER COMMON SHARE	$	0.31		$	0.28			11			$	0.62	$	0.56			11
Average common shares outstanding		3,309.8			3,351.2			(1	)			3,306.1		3,363.5			(2	)
Diluted average common shares outstanding		3,321.4			3,389.3			(2	)			3,319.6		3,402.5			(2	)

NM - Not meaningful

-16-

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

	Quarter ended
	June 30,			Mar. 31,		Dec. 31,			Sept. 30,		June 30,
(in millions, except per share amounts)	2008			2008		2007			2007		2007
INTEREST INCOME
Trading assets	$	38		$	47	$	36		$	37	$	47
Securities available for sale		1,224			1,132		981			1,032		752
Mortgages held for sale		423			394		456			586		578
Loans held for sale		10			12		19			19		17
Loans		6,806			7,212		7,699			7,477		7,100
Other interest income		46			52		51			72		79
Total interest income		8,547			8,849		9,242			9,223		8,573
INTEREST EXPENSE
Deposits		1,063			1,594		2,136			2,218		1,941
Short-term borrowings		357			425		380			464		265
Long-term debt		849			1,070		1,238			1,261		1,171
Total interest expense		2,269			3,089		3,754			3,943		3,377
NET INTEREST INCOME		6,278			5,760		5,488			5,280		5,196
Provision for credit losses		3,012			2,028		2,612			892		720
Net interest income after provision for credit losses		3,266			3,732		2,876			4,388		4,476
NONINTEREST INCOME
Service charges on deposit accounts		800			748		788			837		740
Trust and investment fees		762			763		802			777		839
Card fees		588			558		588			561		517
Other fees		511			499		577			566		638
Mortgage banking		1,197			631		831	��		823		689
Operating leases		120			143		153			171		187
Insurance		550			504		370			329		432
Net gains (losses) on debt securities available for sale		(91	)		323		60			160		(42	)
Net gains from equity investments		46			313		222			173		242
Other		698			321		326			176		453
Total noninterest income		5,181			4,803		4,717			4,573		4,695
NONINTEREST EXPENSE
Salaries		2,030			1,984		2,055			1,933		1,907
Incentive compensation		806			644		840			802		900
Employee benefits		593			587		558			518		581
Equipment		305			348		370			295		292
Net occupancy		400			399		413			398		369
Operating leases		102			116		124			136		148
Other		1,624			1,384		1,540			1,589		1,530
Total noninterest expense		5,860			5,462		5,900			5,671		5,727
INCOME BEFORE INCOME TAX EXPENSE		2,587			3,073		1,693			3,290		3,444
Income tax expense		834			1,074		332			1,117		1,165
NET INCOME	$	1,753		$	1,999	$	1,361		$	2,173	$	2,279
EARNINGS PER COMMON SHARE	$	0.53		$	0.61	$	0.41		$	0.65	$	0.68
DILUTED EARNINGS PER COMMON SHARE	$	0.53		$	0.60	$	0.41		$	0.64	$	0.67
DIVIDENDS DECLARED PER COMMON SHARE	$	0.31		$	0.31	$	0.31		$	0.31	$	0.28
Average common shares outstanding		3,309.8			3,302.4		3,327.6			3,339.6		3,351.2
Diluted average common shares outstanding		3,321.4			3,317.9		3,352.2			3,374.0		3,389.3

-17-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

														% Change
										June 30, 2008 from
	June 30,			Dec. 31,			June 30,			Dec. 31,				June 30,
(in millions, except shares)	2008			2007			2007			2007				2007
ASSETS
Cash and due from banks	$	13,610		$	14,757		$	12,714			(8)		%		7		%
Federal funds sold, securities purchased under resale agreements and other short-term investments		4,088			2,754			5,163			48				(21	)
Trading assets		9,681			7,727			7,289			25				33
Securities available for sale		91,331			72,951			72,179			25				27
Mortgages held for sale (includes $22,940, $24,998 and $30,175 carried at fair value)		25,234			26,815			34,580			(6	)			(27	)
Loans held for sale		680			948			887			(28	)			(23	)
Loans		399,237			382,195			342,800			4				16
Allowance for loan losses		(7,375	)		(5,307	)		(3,820	)		39				93
Net loans		391,862			376,888			338,980			4				16
Mortgage servicing rights:
Measured at fair value (residential MSRs)		19,333			16,763			18,733			15				3
Amortized		442			466			418			(5	)			6
Premises and equipment, net		5,033			5,122			4,973			(2	)			1
Goodwill		13,191			13,106			11,983			1				10
Other assets		34,589			37,145			31,966			(7	)			8
Total assets	$	609,074		$	575,442		$	539,865			6				13
LIABILITIES
Noninterest-bearing deposits	$	85,062		$	84,348		$	89,809			1				(5	)
Interest-bearing deposits		254,062			260,112			234,934			(2	)			8
Total deposits		339,124			344,460			324,743			(2	)			4
Short-term borrowings		86,139			53,255			40,838			62				111
Accrued expenses and other liabilities		31,919			30,706			33,215			4				(4	)
Long-term debt		103,928			99,393			93,830			5				11
Total liabilities		561,110			527,814			492,626			6				14
STOCKHOLDERS’ EQUITY
Preferred stock		723			450			637			61				14
Common stock - - $1-2/3 par value, authorized 6,000,000,000 shares; issued 3,472,762,050 shares		5,788			5,788			5,788			--				--
Additional paid-in capital		8,266			8,212			8,027			1				3
Retained earnings		40,534			38,970			37,603			4				8
Cumulative other comprehensive income (loss)		(1,060	)		725			(236	)	NM					349
Treasury stock - 160,801,351 shares, 175,659,842 shares and 110,551,965 shares		(5,516	)		(6,035	)		(3,898	)		(9	)			42
Unearned ESOP shares		(771	)		(482	)		(682	)		60				13
Total stockholders’ equity		47,964			47,628			47,239			1				2
Total liabilities and stockholders’ equity	$	609,074		$	575,442		$	539,865			6				13

NM - Not meaningful

-18-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2008			2008			2007			2007			2007
ASSETS
Cash and due from banks	$	13,610		$	13,146		$	14,757		$	12,200		$	12,714
Federal funds sold, securities purchased under resale agreements and other short-term investments		4,088			4,171			2,754			4,546			5,163
Trading assets		9,681			8,893			7,727			7,298			7,289
Securities available for sale		91,331			81,787			72,951			57,440			72,179
Mortgages held for sale		25,234			29,708			26,815			29,699			34,580
Loans held for sale		680			813			948			1,011			887
Loans		399,237			386,333			382,195			362,922			342,800
Allowance for loan losses		(7,375	)		(5,803	)		(5,307	)		(3,829	)		(3,820	)
Net loans		391,862			380,530			376,888			359,093			338,980
Mortgage servicing rights:
Measured at fair value (residential MSRs)		19,333			14,956			16,763			18,223			18,733
Amortized		442			455			466			460			418
Premises and equipment, net		5,033			5,056			5,122			5,002			4,973
Goodwill		13,191			13,148			13,106			12,018			11,983
Other assets		34,589			42,558			37,145			41,737			31,966
Total assets	$	609,074		$	595,221		$	575,442		$	548,727		$	539,865
LIABILITIES
Noninterest-bearing deposits	$	85,062		$	90,793		$	84,348		$	82,365		$	89,809
Interest-bearing deposits		254,062			267,351			260,112			252,591			234,934
Total deposits		339,124			358,144			344,460			334,956			324,743
Short-term borrowings		86,139			53,983			53,255			41,729			40,838
Accrued expenses and other liabilities		31,919			31,760			30,706			28,884			33,215
Long-term debt		103,928			103,175			99,393			95,592			93,830
Total liabilities		561,110			547,062			527,814			501,161			492,626
STOCKHOLDERS’ EQUITY
Preferred stock		723			837			450			545			637
Common stock		5,788			5,788			5,788			5,788			5,788
Additional paid-in capital		8,266			8,259			8,212			8,089			8,027
Retained earnings		40,534			39,896			38,970			38,645			37,603
Cumulative other comprehensive income (loss)		(1,060	)		120			725			291			(236	)
Treasury stock		(5,516	)		(5,850	)		(6,035	)		(5,209	)		(3,898	)
Unearned ESOP shares		(771	)		(891	)		(482	)		(583	)		(682	)
Total stockholders’ equity		47,964			48,159			47,628			47,566			47,239
Total liabilities and stockholders’ equity	$	609,074		$	595,221		$	575,442		$	548,727		$	539,865

-19-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	June 30,			Mar. 31,				Dec. 31,			Sept. 30,			June 30,
(in millions)	2008			2008				2007			2007			2007
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	3,853		$	3,888			$	2,972		$	4,219		$	4,849
Trading assets		4,915			5,129				4,248			4,043			4,572
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,050			975				926			871			839
Securities of U.S. states and political subdivisions		7,038			6,290				5,995			5,021			4,383
Mortgage-backed securities:
Federal agencies		40,630			36,097				35,434			52,681			35,406
Private collateralized mortgage obligations		22,419			20,994				14,270			4,026			3,816
Total mortgage-backed securities		63,049			57,091				49,704			56,707			39,222
Other debt securities (1)		13,600			10,825				8,465			5,822			5,090
Total debt securities available for sale (1)		84,737			75,181				65,090			68,421			49,534
Mortgages held for sale (2)		28,004			26,273				28,327			35,552			36,060
Loans held for sale (2)		734			647				965			960			864
Loans:
Commercial and commercial real estate:
Commercial		95,263			91,085				86,958			79,713			73,932
Other real estate mortgage		39,977			37,426				35,863			32,641			31,736
Real estate construction		19,213			18,932				18,510			16,914			16,393
Lease financing		7,087			6,825				6,583			6,026			5,559
Total commercial and commercial real estate		161,540			154,268				147,914			135,294			127,620
Consumer:
Real estate 1-4 family first mortgage		73,663			72,308				69,262			63,929			58,283
Real estate 1-4 family junior lien mortgage		75,018			75,263		��		75,272			73,476			70,390
Credit card		19,037			18,776				17,689			16,261			14,950
Other revolving credit and installment		54,842			55,910				56,546			54,165			53,464
Total consumer		222,560			222,257				218,769			207,831			197,087
Foreign		7,445			7,394				7,689			7,558			7,263
Total loans (2)		391,545			383,919				374,372			350,683			331,970
Other		2,033			1,825				1,552			1,396			1,329
Total earning assets	$	515,821		$	496,862			$	477,526		$	465,274		$	429,178
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	5,487		$	5,226			$	5,254		$	5,160		$	5,193
Market rate and other savings		161,760			159,865				156,260			149,194			145,185
Savings certificates		37,634			41,915				42,560			41,080			39,729
Other time deposits		5,773			4,763				10,874			10,948			4,574
Deposits in foreign offices		51,884			46,641				44,991			41,326			32,841
Total interest-bearing deposits		262,538			258,410				259,939			247,708			227,522
Short-term borrowings		66,537			52,970				34,074			36,415			21,066
Long-term debt		100,552			100,686				98,012			94,686			90,931
Total interest-bearing liabilities		429,627			412,066				392,025			378,809			339,519
Portion of noninterest-bearing funding sources		86,194			84,796				85,501			86,465			89,659
Total funding sources	$	515,821		$	496,862			$	477,526		$	465,274		$	429,178
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	10,875		$	11,648			$	12,127		$	11,579		$	11,655
Goodwill		13,171			13,161				13,091			12,008			11,435
Other		54,882			53,323				52,903			52,672			50,418
Total noninterest-earning assets	$	78,928		$	78,132			$	78,121		$	76,259		$	73,508
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	88,041		$	84,886			$	86,632		$	88,991		$	91,256
Other liabilities		28,723			30,348				29,019			26,413			25,221
Stockholders’ equity		48,358			47,694				47,971			47,320			46,690
Noninterest-bearing funding sources used to fund earning assets		(86,194	)		(84,796	)			(85,501	)		(86,465	)		(89,659	)
Net noninterest-bearing funding sources	$	78,928		$	78,132			$	78,121		$	76,259		$	73,508
TOTAL ASSETS	$	594,749		$	574,994			$	555,647		$	541,533		$	502,686

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

-20-

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

	Six months ended June 30,
(in millions)	2008			2007
Balance, beginning of period	$	47,628		$	45,814
Cumulative effect from adoption of:
FSP13-2 (1)		--			(71	)
EITF 06-4 and 06-10 (2)		(20	)		--
FAS 158 change of measurement date (3)		(8	)		--
Net income		3,752			4,523
Other comprehensive income (loss), net of tax, related to:
Translation adjustments		(6	)		12
Investment securities and other interests held		(1,732	)		(533	)
Derivative instruments and hedging activities		(49	)		(29	)
Defined benefit pension plans		2			12
Common stock issued		608			995
Common stock issued for acquisitions		--			646
Common stock repurchased		(520	)		(2,689	)
Preferred stock released to ESOP		248			231
Common stock dividends		(2,050	)		(1,885	)
Other, net		111			213
Balance, end of period	$	47,964		$	47,239

(1)	Financial Accounting Standards Board Staff Position 13-2,Accounting for a Change or Projected Change in the Timing of Cash Flows Related to Income Taxes Generated by a Leveraged Lease Transaction.
(2)	Emerging Issues Task Force (EITF) Issue No. 06-4,Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements,and Issue No. 06-10,Accounting for Collateral Assignment Split-Dollar Life Insurance Arrangements.
(3)	Statement of Financial Accounting Standards No. 158,Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106, and 132(R).

-21-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in millions)	2008		2008		2007		2007		2007
Commercial and commercial real estate:
Commercial	$	99,188	$	92,589	$	90,468	$	82,598	$	77,560
Other real estate mortgage		41,753		38,415		36,747		33,227		32,336
Real estate construction		19,528		18,885		18,854		17,301		16,552
Lease financing		7,160		6,885		6,772		6,089		5,979
Total commercial and commercial real estate		167,629		156,774		152,841		139,215		132,427
Consumer:
Real estate 1-4 family first mortgage		74,829		73,321		71,415		66,877		61,177
Real estate 1-4 family junior lien mortgage		75,261		74,840		75,565		74,632		72,398
Credit card		19,429		18,677		18,762		17,129		15,567
Other revolving credit and installment		54,575		55,505		56,171		57,180		53,701
Total consumer		224,094		222,343		221,913		215,818		202,843
Foreign		7,514		7,216		7,441		7,889		7,530
Total loans (net of unearned income)	$	399,237	$	386,333	$	382,195	$	362,922	$	342,800

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2008			2008			2007			2007			2007
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	685		$	588		$	432		$	399		$	395
Other real estate mortgage		198			152			128			133			129
Real estate construction		563			438			293			188			81
Lease financing		59			57			45			38			29
Total commercial and commercial real estate		1,505			1,235			898			758			634
Consumer:
Real estate 1-4 family first mortgage (1)		1,638			1,398			1,272			886			663
Real estate 1-4 family junior lien mortgage		668			381			280			238			228
Other revolving credit and installment		207			196			184			160			155
Total consumer		2,513			1,975			1,736			1,284			1,046
Foreign		55			49			45			46			53
Total nonaccrual loans		4,073			3,259			2,679			2,088			1,733
As a percentage of total loans		1.02	%		0.84	%		0.70	%		0.58	%		0.51	%
Foreclosed assets:
GNMA loans (2)		535			578			535			487			423
Other		595			637			649			603			554
Real estate and other nonaccrual investments (3)		24			21			5			5			5
Total nonaccrual loans and other assets	$	5,227		$	4,495		$	3,868		$	3,183		$	2,715
As a percentage of total loans		1.31	%		1.16	%		1.01	%		0.88	%		0.79	%

(1)	Includes nonaccrual mortgages held for sale.
(2)	Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.
(3)	Includes real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if these assets were recorded as loans.

-22-

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

	Quarter ended												Six months ended
	June 30,				Mar. 31,				June 30,				June 30,				June 30,
(in millions)	2008				2008				2007				2008				2007
Balance, beginning of period	$	6,013			$	5,518			$	3,965			$	5,518			$	3,964
Provision for credit losses		3,012				2,028				720				5,040				1,435
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(333	)			(259	)			(127	)			(592	)			(253	)
Other real estate mortgage		(6	)			(4	)			(1	)			(10	)			(2	)
Real estate construction		(28	)			(29	)			(2	)			(57	)			(2	)
Lease financing		(13	)			(12	)			(9	)			(25	)			(16	)
Total commercial and commercial real estate		(380	)			(304	)			(139	)			(684	)			(273	)
Consumer:
Real estate 1-4 family first mortgage		(103	)			(81	)			(25	)			(184	)			(49	)
Real estate 1-4 family junior lien mortgage		(352	)			(455	)			(107	)			(807	)			(190	)
Credit card		(369	)			(313	)			(191	)			(682	)			(374	)
Other revolving credit and installment		(488	)			(543	)			(434	)			(1,031	)			(908	)
Total consumer		(1,312	)			(1,392	)			(757	)			(2,704	)			(1,521	)
Foreign		(58	)			(68	)			(64	)			(126	)			(126	)
Total loan charge-offs		(1,750	)			(1,764	)			(960	)			(3,514	)			(1,920	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		32				31				25				63				49
Other real estate mortgage		2				1				3				3				5
Real estate construction		1				1				--				2				1
Lease financing		3				3				4				6				9
Total commercial and commercial real estate		38				36				32				74				64
Consumer:
Real estate 1-4 family first mortgage		7				6				6				13				12
Real estate 1-4 family junior lien mortgage		18				17				16				35				25
Credit card		40				38				30				78				61
Other revolving credit and installment		121				125				139				246				288
Total consumer		186				186				191				372				386
Foreign		14				14				17				28				35
Total loan recoveries		238				236				240				474				485
Net loan charge-offs		(1,512	)			(1,528	)			(720	)			(3,040	)			(1,435	)
Allowances related to business combinations/other		4				(5	)			42				(1	)			43
Balance, end of period	$	7,517			$	6,013			$	4,007			$	7,517			$	4,007
Components:
Allowance for loan losses	$	7,375			$	5,803			$	3,820			$	7,375			$	3,820
Reserve for unfunded credit commitments		142				210				187				142				187
Allowance for credit losses	$	7,517			$	6,013			$	4,007			$	7,517			$	4,007
Net loan charge-offs (annualized) as a percentage of average total loans		1.55		%		1.60		%		0.87		%		1.58		%		0.89		%

-23-

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

	Quarter ended
	June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
(in millions)	2008				2008				2007				2007				2007
Balance, beginning of quarter	$	6,013			$	5,518			$	4,018			$	4,007			$	3,965
Provision for credit losses		3,012				2,028				2,612				892				720
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(333	)			(259	)			(221	)			(155	)			(127	)
Other real estate mortgage		(6	)			(4	)			(4	)			--				(1	)
Real estate construction		(28	)			(29	)			(9	)			(3	)			(2	)
Lease financing		(13	)			(12	)			(9	)			(8	)			(9	)
Total commercial and commercial real estate		(380	)			(304	)			(243	)			(166	)			(139	)
Consumer:
Real estate 1-4 family first mortgage		(103	)			(81	)			(38	)			(22	)			(25	)
Real estate 1-4 family junior lien mortgage		(352	)			(455	)			(291	)			(167	)			(107	)
Credit card		(369	)			(313	)			(253	)			(205	)			(191	)
Other revolving credit and installment		(488	)			(543	)			(532	)			(473	)			(434	)
Total consumer		(1,312	)			(1,392	)			(1,114	)			(867	)			(757	)
Foreign		(58	)			(68	)			(70	)			(69	)			(64	)
Total loan charge-offs		(1,750	)			(1,764	)			(1,427	)			(1,102	)			(960	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		32				31				35				35				25
Other real estate mortgage		2				1				1				2				3
Real estate construction		1				1				--				1				--
Lease financing		3				3				5				3				4
Total commercial and commercial real estate		38				36				41				41				32
Consumer:
Real estate 1-4 family first mortgage		7				6				4				6				6
Real estate 1-4 family junior lien mortgage		18				17				14				14				16
Credit card		40				38				30				29				30
Other revolving credit and installment		121				125				111				105				139
Total consumer		186				186				159				154				191
Foreign		14				14				15				15				17
Total loan recoveries		238				236				215				210				240
Net loan charge-offs		(1,512	)			(1,528	)			(1,212	)			(892	)			(720	)
Allowances related to business combinations/other		4				(5	)			100				11				42
Balance, end of quarter	$	7,517			$	6,013			$	5,518			$	4,018			$	4,007
Components:
Allowance for loan losses	$	7,375			$	5,803			$	5,307			$	3,829			$	3,820
Reserve for unfunded credit commitments		142				210				211				189				187
Allowance for credit losses	$	7,517			$	6,013			$	5,518			$	4,018			$	4,007
Net loan charge-offs (annualized) as a percentage of average total loans		1.55		%		1.60		%		1.28		%		1.01		%		0.87		%
Allowance for loan losses as a percentage of:
Total loans		1.85		%		1.50		%		1.39		%		1.06		%		1.11		%
Nonaccrual loans		181				178				198				183				220
Nonaccrual loans and other assets		141				129				137				120				141
Allowance for credit losses as a percentage of:
Total loans		1.88		%		1.56		%		1.44		%		1.11		%		1.17		%
Nonaccrual loans		185				185				206				192				231
Nonaccrual loans and other assets		144				134				143				126				148

-24-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended June 30,						%			Six months ended June 30,					%
(in millions)	2008			2007			Change			2008		2007			Change
Service charges on deposit accounts	$	800		$	740			8	%	$	1,548	$	1,425			9		%
Trust and investment fees:
Trust, investment and IRA fees		566			610			(7	)		1,125		1,147			(2	)
Commissions and all other fees		196			229			(14	)		400		423			(5	)
Total trust and investment fees		762			839			(9	)		1,525		1,570			(3	)
Card fees		588			517			14			1,146		987			16
Other fees:
Cash network fees		47			50			(6	)		95		95			--
Charges and fees on loans		251			253			(1	)		499		491			2
All other fees		213			335			(36	)		416		563			(26	)
Total other fees		511			638			(20	)		1,010		1,149			(12	)
Mortgage banking:
Servicing income, net		221			(45	)	NM				494		171			189
Net gains on mortgage loan origination/sales activities		876			635			38			1,143		1,130			1
All other		100			99			1			191		178			7
Total mortgage banking		1,197			689			74			1,828		1,479			24
Operating leases		120			187			(36	)		263		379			(31	)
Insurance		550			432			27			1,054		831			27
Net gains from trading activities		516			260			98			619		525			18
Net gains (losses) on debt securities available for sale		(91	)		(42	)		117			232		(11	)	NM
Net gains from equity investments		46			242			(81	)		359		339			6
All other		182			193			(6	)		400		453			(12	)
Total	$	5,181		$	4,695			10		$	9,984	$	9,126			9

NONINTEREST EXPENSE

	Quarter ended June 30,				%				Six months ended June 30,					%
(in millions)	2008		2007		Change				2008			2007		Change
Salaries	$	2,030	$	1,907		6		%	$	4,014		$	3,774		6		%
Incentive compensation		806		900		(10	)			1,450			1,642		(12	)
Employee benefits		593		581		2				1,180			1,246		(5	)
Equipment		305		292		4				653			629		4
Net occupancy		400		369		8				799			734		9
Operating leases		102		148		(31	)			218			301		(28	)
Outside professional services		212		235		(10	)			383			427		(10	)
Outside data processing		122		121		1				231			232		--
Travel and entertainment		112		118		(5	)			217			227		(4	)
Contract services		104		113		(8	)			212			231		(8	)
Operating losses (reduction in losses)		56		57		(2	)			(17	)		144	NM
Insurance		206		148		39				367			276		33
Advertising and promotion		104		113		(8	)			189			204		(7	)
Postage		84		85		(1	)			173			172		1
Telecommunications		82		81		1				160			162		(1	)
Stationery and supplies		54		52		4				106			105		1
Security		45		44		2				89			87		2
Core deposit intangibles		31		27		15				62			53		17
All other		412		336		23				836			607		38
Total	$	5,860	$	5,727		2			$	11,322		$	11,253		1

NM - Not meaningful

-25-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	June 30,			Mar. 31,		Dec. 31,		Sept. 30,			June 30,
(in millions)	2008			2008		2007		2007			2007
Service charges on deposit accounts	$	800		$	748	$	788	$	837		$	740
Trust and investment fees:
Trust, investment and IRA fees		566			559		585		573			610
Commissions and all other fees		196			204		217		204			229
Total trust and investment fees		762			763		802		777			839
Card fees		588			558		588		561			517
Other fees:
Cash network fees		47			48		47		51			50
Charges and fees on loans		251			248		274		246			253
All other fees		213			203		256		269			335
Total other fees		511			499		577		566			638
Mortgage banking:
Servicing income, net		221			273		543		797			(45	)
Net gains (losses) on mortgage loan origination/sales activities		876			267		220		(61	)		635
All other		100			91		68		87			99
Total mortgage banking		1,197			631		831		823			689
Operating leases		120			143		153		171			187
Insurance		550			504		370		329			432
Net gains (losses) from trading activities		516			103		62		(43	)		260
Net gains (losses) on debt securities available for sale		(91	)		323		60		160			(42	)
Net gains from equity investments		46			313		222		173			242
All other		182			218		264		219			193
Total	$	5,181		$	4,803	$	4,717	$	4,573		$	4,695

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	June 30,		Mar. 31,			Dec. 31,		Sept. 30,		June 30,
(in millions)	2008		2008			2007		2007		2007
Salaries	$	2,030	$	1,984		$	2,055	$	1,933	$	1,907
Incentive compensation		806		644			840		802		900
Employee benefits		593		587			558		518		581
Equipment		305		348			370		295		292
Net occupancy		400		399			413		398		369
Operating leases		102		116			124		136		148
Outside professional services		212		171			250		222		235
Outside data processing		122		109			127		123		121
Travel and entertainment		112		105			134		113		118
Contract services		104		108			114		103		113
Operating losses (reduction in losses)		56		(73	)		68		225		57
Insurance		206		161			59		81		148
Advertising and promotion		104		85			100		108		113
Postage		84		89			85		88		85
Telecommunications		82		78			80		79		81
Stationery and supplies		54		52			61		54		52
Security		45		44			47		42		44
Core deposit intangibles		31		31			32		28		27
All other		412		424			383		323		336
Total	$	5,860	$	5,462		$	5,900	$	5,671	$	5,727

-26-

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

	Quarter ended June 30,
	2008								2007
							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	$	3,853			2.32	%	$	22	$	4,849			5.09	%	$	61
Trading assets		4,915			3.24			39		4,572			4.83			55
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,050			3.77			10		839			4.28			9
Securities of U.S. states and political subdivisions		7,038			6.62			118		4,383			7.42			79
Mortgage-backed securities:
Federal agencies		40,630			5.92			588		35,406			6.09			533
Private collateralized mortgage obligations		22,419			5.87			340		3,816			6.41			61
Total mortgage-backed securities		63,049			5.90			928		39,222			6.13			594
Other debt securities (4)		13,600			6.30			226		5,090			7.61			96
Total debt securities available for sale (4)		84,737			6.00			1,282		49,534			6.36			778
Mortgages held for sale (5)		28,004			6.04			423		36,060			6.42			578
Loans held for sale (5)		734			5.63			10		864			7.74			17
Loans:
Commercial and commercial real estate:
Commercial		95,263			6.09			1,444		73,932			8.31			1,531
Other real estate mortgage		39,977			5.77			573		31,736			7.48			592
Real estate construction		19,213			5.01			240		16,393			7.97			326
Lease financing		7,087			5.64			100		5,559			5.95			83
Total commercial and commercial real estate		161,540			5.86			2,357		127,620			7.96			2,532
Consumer:
Real estate 1-4 family first mortgage		73,663			6.79			1,250		58,283			7.36			1,071
Real estate 1-4 family junior lien mortgage		75,018			6.68			1,246		70,390			8.20			1,440
Credit card		19,037			11.81			561		14,950			14.46			540
Other revolving credit and installment		54,842			8.78			1,198		53,464			9.78			1,303
Total consumer		222,560			7.67			4,255		197,087			8.85			4,354
Foreign		7,445			10.61			197		7,263			12.00			218
Total loans (5)		391,545			6.98			6,809		331,970			8.58			7,104
Other		2,033			4.47			24		1,329			5.23			18
Total earning assets	$	515,821			6.69			8,609	$	429,178			8.05			8,611
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	5,487			1.18			16	$	5,193			3.24			42
Market rate and other savings		161,760			1.21			486		145,185			2.82			1,022
Savings certificates		37,634			3.06			287		39,729			4.38			433
Other time deposits		5,773			2.72			38		4,574			4.82			55
Deposits in foreign offices		51,884			1.83			236		32,841			4.75			389
Total interest-bearing deposits		262,538			1.63			1,063		227,522			3.42			1,941
Short-term borrowings		66,537			2.16			357		21,066			5.06			265
Long-term debt		100,552			3.41			856		90,931			5.17			1,174
Total interest-bearing liabilities		429,627			2.13			2,276		339,519			3.99			3,380
Portion of noninterest-bearing funding sources		86,194			--			--		89,659			--			--
Total funding sources	$	515,821			1.77			2,276	$	429,178			3.16			3,380
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.92	%	$	6,333					4.89	%	$	5,231
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	10,875							$	11,655
Goodwill		13,171								11,435
Other		54,882								50,418
Total noninterest-earning assets	$	78,928							$	73,508
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	88,041							$	91,256
Other liabilities		28,723								25,221
Stockholders’ equity		48,358								46,690
Noninterest-bearing funding sources used to fund earning assets		(86,194	)							(89,659	)
Net noninterest-bearing funding sources	$	78,928							$	73,508
TOTAL ASSETS	$	594,749							$	502,686

(1)	Our average prime rate was 5.08% and 8.25% for the quarters ended June 30, 2008 and 2007, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.75% and 5.36% 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.

-27-

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

	Six months ended June 30,
	2008								2007
							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	$	3,870			2.81	%	$	54	$	5,355			5.13	%	$	136
Trading assets		5,022			3.49			87		4,439			5.17			114
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,012			3.81			19		796			4.29			17
Securities of U.S. states and political subdivisions		6,664			7.00			238		3,960			7.40			142
Mortgage-backed securities:
Federal agencies		38,364			6.00			1,123		33,036			6.14			1,000
Private collateralized mortgage obligations		21,706			5.97			664		3,904			6.37			123
Total mortgage-backed securities		60,070			5.99			1,787		36,940			6.16			1,123
Other debt securities (4)		12,213			6.58			422		5,433			7.52			202
Total debt securities available for sale (4)		79,959			6.14			2,466		47,129			6.39			1,484
Mortgages held for sale (5)		27,138			6.02			817		34,212			6.48			1,108
Loans held for sale (5)		691			6.52			22		829			7.78			32
Loans:
Commercial and commercial real estate:
Commercial		93,174			6.50			3,013		72,505			8.30			2,986
Other real estate mortgage		38,701			6.09			1,173		31,166			7.45			1,152
Real estate construction		19,073			5.53			525		16,144			7.99			640
Lease financing		6,956			5.71			198		5,531			5.84			162
Total commercial and commercial real estate		157,904			6.25			4,909		125,346			7.94			4,940
Consumer:
Real estate 1-4 family first mortgage		72,985			6.84			2,496		56,374			7.34			2,066
Real estate 1-4 family junior lien mortgage		75,140			6.99			2,614		69,738			8.19			2,833
Credit card		18,907			12.06			1,140		14,755			14.01			1,033
Other revolving credit and installment		55,376			8.94			2,462		53,501			9.76			2,590
Total consumer		222,408			7.86			8,712		194,368			8.82			8,522
Foreign		7,420			10.94			404		7,015			11.78			410
Total loans (5)		387,732			7.26			14,025		326,729			8.55			13,872
Other		1,930			4.50			44		1,327			5.17			34
Total earning assets	$	506,342			6.94			17,515	$	420,020			8.05			16,780
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	5,357			1.54			41	$	4,905			3.24			79
Market rate and other savings		160,812			1.59			1,270		143,071			2.80			1,985
Savings certificates		39,774			3.54			700		39,125			4.40			854
Other time deposits		5,269			3.09			80		6,931			5.03			173
Deposits in foreign offices		49,262			2.31			566		30,258			4.71			707
Total interest-bearing deposits		260,474			2.05			2,657		224,290			3.41			3,798
Short-term borrowings		59,754			2.63			782		16,308			4.96			401
Long-term debt		100,619			3.85			1,933		89,984			5.16			2,312
Total interest-bearing liabilities		420,847			2.56			5,372		330,582			3.97			6,511
Portion of noninterest-bearing funding sources		85,495			--			--		89,438			--			--
Total funding sources	$	506,342			2.13			5,372	$	420,020			3.13			6,511
Net interest margin and net interest income on a taxable-equivalent basis (6)					4.81	%	$	12,143					4.92	%	$	10,269
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	11,262							$	11,758
Goodwill		13,166								11,355
Other		54,101								49,320
Total noninterest-earning assets	$	78,529							$	72,433
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	86,464							$	90,020
Other liabilities		29,534								25,378
Stockholders’ equity		48,026								46,473
Noninterest-bearing funding sources used to fund earning assets		(85,495	)							(89,438	)
Net noninterest-bearing funding sources	$	78,529							$	72,433
TOTAL ASSETS	$	584,871							$	492,453

(1)	Our average prime rate was 5.65% and 8.25% for the six months ended June 30, 2008 and 2007, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 3.02% and 5.36% 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.

-28-

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				Company
Quarter ended June 30,	2008		2007		2008		2007		2008			2007		2008			2007
Net interest income	$	4,136	$	3,225	$	1,020	$	888	$	1,122		$	1,083	$	6,278		$	5,196
Provision for credit losses		1,996		353		245		1		771			366		3,012			720
Noninterest income		3,411		2,946		1,480		1,421		290			328		5,181			4,695
Noninterest expense		3,737		3,590		1,420		1,346		703			791		5,860			5,727
Income (loss) before income tax expense (benefit)		1,814		2,228		835		962		(62	)		254		2,587			3,444
Income tax expense (benefit)		580		726		278		341		(24	)		98		834			1,165
Net income (loss)	$	1,234	$	1,502	$	557	$	621	$	(38	)	$	156	$	1,753		$	2,279
Average loans	$	215.9	$	186.6	$	107.6	$	81.4	$	68.0		$	64.0	$	391.5		$	332.0
Average assets (2)		365.9		319.8		149.9		107.3		73.1			69.8		594.7			502.7
Average core deposits		252.6		243.0		65.8		57.5		--			--		318.4			300.5
Six months ended June 30,
Net interest income	$	7,772	$	6,375	$	2,052	$	1,743	$	2,214		$	2,088	$	12,038		$	10,206
Provision for credit losses		3,309		659		406		14		1,325			762		5,040			1,435
Noninterest income		6,634		5,711		2,730		2,768		620			647		9,984			9,126
Noninterest expense		7,073		7,160		2,835		2,553		1,414			1,540		11,322			11,253
Income before income tax expense		4,024		4,267		1,541		1,944		95			433		5,660			6,644
Income tax expense		1,363		1,266		509		690		36			165		1,908			2,121
Net income	$	2,661	$	3,001	$	1,032	$	1,254	$	59		$	268	$	3,752		$	4,523
Average loans	$	215.4	$	183.7	$	104.1	$	79.7	$	68.2		$	63.3	$	387.7		$	326.7
Average assets (2)		361.4		313.4		144.2		104.3		73.5			69.0		584.9			492.5
Average core deposits		250.4		240.0		67.4		55.6		--			--		317.8			295.6

(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 segment 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 our corporate trust business into Wholesale Banking in first quarter 2008, results for prior periods have been revised.

(2)

The Consolidated Company balance includes unallocated goodwill held at the enterprise level of $5.8 billion for all periods presented.

-29-

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

	Quarter ended
	June 30,			Mar. 31,		Dec. 31,			Sept. 30,		June 30,
(income/expense in millions, average balances in billions)	2008			2008		2007			2007		2007
COMMUNITY BANKING
Net interest income	$	4,136		$	3,636	$	3,421		$	3,303	$	3,225
Provision for credit losses		1,996			1,313		2,082			446		353
Noninterest income		3,411			3,223		3,101			3,020		2,946
Noninterest expense		3,737			3,336		3,822			3,713		3,590
Income before income tax expense (benefit)		1,814			2,210		618			2,164		2,228
Income tax expense (benefit)		580			783		(40	)		717		726
Net income	$	1,234		$	1,427	$	658		$	1,447	$	1,502
Average loans	$	215.9		$	214.9	$	210.9		$	197.4	$	186.6
Average assets		365.9			356.7		346.8			348.1		319.8
Average core deposits		252.6			248.4		245.3			243.0		243.0
WHOLESALE BANKING
Net interest income	$	1,020		$	1,032	$	987		$	918	$	888
Provision for credit losses		245			161		36			19		1
Noninterest income		1,480			1,250		1,293			1,239		1,421
Noninterest expense		1,420			1,415		1,294			1,230		1,346
Income before income tax expense		835			706		950			908		962
Income tax expense		278			231		325			317		341
Net income	$	557		$	475	$	625		$	591	$	621
Average loans	$	107.6		$	100.6	$	95.1		$	87.5	$	81.4
Average assets		149.9			138.5		128.3			115.9		107.3
Average core deposits		65.8			68.9		69.5			63.1		57.5
WELLS FARGO FINANCIAL
Net interest income	$	1,122		$	1,092	$	1,080		$	1,059	$	1,083
Provision for credit losses		771			554		494			427		366
Noninterest income		290			330		323			314		328
Noninterest expense		703			711		784			728		791
Income (loss) before income tax expense (benefit)		(62	)		157		125			218		254
Income tax expense (benefit)		(24	)		60		47			83		98
Net income (loss)	$	(38	)	$	97	$	78		$	135	$	156
Average loans	$	68.0		$	68.4	$	68.4		$	65.8	$	64.0
Average assets		73.1			74.0		74.7			71.7		69.8
CONSOLIDATED COMPANY
Net interest income	$	6,278		$	5,760	$	5,488		$	5,280	$	5,196
Provision for credit losses		3,012			2,028		2,612			892		720
Noninterest income		5,181			4,803		4,717			4,573		4,695
Noninterest expense		5,860			5,462		5,900			5,671		5,727
Income before income tax expense		2,587			3,073		1,693			3,290		3,444
Income tax expense		834			1,074		332			1,117		1,165
Net income	$	1,753		$	1,999	$	1,361		$	2,173	$	2,279
Average loans	$	391.5		$	383.9	$	374.4		$	350.7	$	332.0
Average assets (2)		594.7			575.0		555.6			541.5		502.7
Average core deposits		318.4			317.3		314.8			306.1		300.5

(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 our corporate trust business into Wholesale Banking in first quarter 2008, results for prior periods have been revised.

(2)

The Consolidated Company balance includes unallocated goodwill held at the enterprise level of $5.8 billion for all periods presented.

-30-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2008			2008			2007			2007			2007
Residential MSRs measured using the fair value method:
Fair value, beginning of quarter	$	14,956		$	16,763		$	18,223		$	18,733		$	17,779
Purchases		82			52			314			188			142
Servicing from securitizations or asset transfers		994			797			872			951			1,029
Sales		(177	)		(92	)		--			(292	)		(1,422	)
Net additions (reductions)		899			757			1,186			847			(251	)
Changes in fair value:
Due to changes in valuation model inputs or assumptions (1)		4,132			(1,798	)		(1,935	)		(638	)		2,013
Other changes in fair value (2)		(654	)		(766	)		(711	)		(719	)		(808	)
Total changes in fair value		3,478			(2,564	)		(2,646	)		(1,357	)		1,205
Fair value, end of quarter	$	19,333		$	14,956		$	16,763		$	18,223		$	18,733

(1)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.
(2)	Represents changes due to collection/realization of expected cash flows over time.

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2008			2008			2007			2007			2007
Amortized MSRs:
Balance, beginning of quarter	$	455		$	466		$	460		$	418		$	400
Purchases		2			3			19			46			26
Servicing from securitizations or asset transfers		4			5			7			12			11
Amortization		(19	)		(19	)		(20	)		(16	)		(19	)
Balance, end of quarter (1)	$	442		$	455		$	466		$	460		$	418
Fair value of amortized MSRs:
Beginning of quarter	$	601		$	573		$	602		$	561		$	484
End of quarter		595			601			573			602			561

(1) There was no valuation allowance recorded for the periods presented.

-31-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in millions)	2008			2008			2007			2007			2007
Servicing income, net:
Servicing fees (1)	$	959		$	964		$	994		$	970		$	1,007
Changes in fair value of residential MSRs:
Due to changes in valuation model inputs or assumptions (2)		4,132			(1,798	)		(1,935	)		(638	)		2,013
Other changes in fair value (3)		(654	)		(766	)		(711	)		(719	)		(808	)
Total changes in fair value of residential MSRs		3,478			(2,564	)		(2,646	)		(1,357	)		1,205
Amortization		(19	)		(19	)		(20	)		(16	)		(19	)
Net derivative gains (losses) from economic hedges (4)		(4,197	)		1,892			2,215			1,200			(2,238	)
Total servicing income, net	$	221		$	273		$	543		$	797		$	(45	)
Market-related valuation changes to MSRs, net of hedge results (2) + (4)	$	(65	)	$	94		$	280		$	562		$	(225	)

(1)	Includes contractually specified servicing fees, late charges and other ancillary revenues.
(2)	Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates.
(3)	Represents changes due to collection/realization of expected cash flows over time.
(4)	Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs.

	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in billions)	2008			2008			2007			2007			2007
Managed servicing portfolio:
Loans serviced for others (1)	$	1,446		$	1,431		$	1,430		$	1,380		$	1,347
Owned loans serviced (2)		100			103			98			97			96
Total owned servicing		1,546			1,534			1,528			1,477			1,443
Sub-servicing		20			21			23			22			24
Total managed servicing portfolio	$	1,566		$	1,555		$	1,551		$	1,499		$	1,467
Ratio of MSRs to related loans serviced for others		1.37	%		1.08	%		1.20	%		1.35	%		1.42	%
Weighted-average note rate (owned servicing only)		6.00	%		6.00	%		6.01	%		5.98	%		5.95	%

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

-32-

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

	Quarter ended
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 30,
(in billions)	2008			2008			2007			2007			2007
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	100		$	132		$	91		$	95		$	114
Refinances as a percentage of applications		44	%		62	%		52	%		40	%		40	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	47		$	61		$	43		$	45		$	56

	Quarter ended
	June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
(in billions)	2008		2008		2007		2007		2007
Residential Real Estate Originations: (1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	31	$	34	$	28	$	29	$	32
Correspondent/Wholesale		27		27		22		29		36
Home equity loans and lines		3		3		4		7		9
Wells Fargo Financial		2		2		2		3		3
Total	$	63	$	66	$	56	$	68	$	80
Year-to-date	$	129	$	66	$	272	$	216	$	148

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

-33-

Wells Fargo & Company and Subsidiaries
SELECTED NATIONAL HOME EQUITY GROUP PORTFOLIO DATA (1)

					% of loans
					two payments						Annualized loss rate
	Outstanding balances				or more past due						Quarter ended
	June 30,		Mar. 31,		June 30,			Mar. 31,			June 30,			Mar. 31,
(in millions)	2008		2008		2008			2008			2008			2008
Liquidating portfolio
California	$	4,310	$	4,417		4.85	%		3.32	%		4.64	%		8.52	%
Florida		561		582		6.80			5.40			6.39			10.56
Arizona		266		275		4.08			3.43			5.38			5.57
Texas		208		219		1.11			0.65			1.02			1.93
Minnesota		135		139		3.15			3.10			3.24			7.91
Other		5,589		5,866		2.40			2.18			2.27			2.98
Total		11,069		11,498		3.60			2.79			3.46			5.58
Core portfolio
California		27,114		26,331		2.32			1.96			1.92			2.21
Florida		2,572		2,595		4.42			3.80			3.84			4.35
Arizona		3,789		3,785		2.29			1.91			1.62			1.89
Texas		2,767		2,805		1.05			1.05			0.34			0.20
Minnesota		4,499		4,546		1.17			1.16			0.81			1.07
Other		32,016		31,994		1.43			1.44			0.83			0.95
Total		72,757		72,056		1.88			1.71			1.36			1.56
Combined totals	$	83,826	$	83,554		2.11			1.86			1.65			2.12

(1) Reflects the impact of the previously disclosed change in the Home Equity charge-off policy from 120 days to no more than 180 days, effective April 1, 2008.