Wells Fargo & Company (WFC) 8-K Financial statements and exhibits

               

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

Tuesday, October 21, 2003
WELLS FARGO REPORTS RECORD
QUARTERLY EARNINGS PER SHARE

               Third Quarter 2003 Highlights:

• Record diluted earnings per share of $.92, up 10 percent from prior year’s $.84

• Record revenue of $7.2 billion, up 19 percent from prior year

• Strong balance sheet growth

o Average loans up 21 percent from prior year

o Average core deposits up 17 percent from prior year

• Asset quality improvement

o Nonperforming assets declined $38 million from prior quarter, and improved to .74 percent of loans

o Net charge-offs as a percentage of average total loans declined to .78 percent from .91 percent in prior year

• Moody’s Investor Service raised Wells Fargo Bank, N.A. to “Aaa”

• Dividend increased 50 percent to $.45 per share

Selected Financial Information
	Third Quarter							Nine months ended September 30						,
					%							%
Earnings	2003		2002		Change			2003		2002		Change
Diluted earnings per share	$	.92	$	.84		10		$	2.70	$	2.46		10
Net income (in millions)		1,561		1,444		8			4,578		4,244		8
Asset Quality
Net charge-offs (annualized) as % of average loans		.78		.91		(14	)		.82		.97		(15	)
Nonperforming assets as % of total loans		.74		.93		(20	)		.74		.93		(20	)
Nonperforming assets (in millions)	$	1,723	$	1,737		(1	)	$	1,723	$	1,737		(1	)
Other
Revenue (in millions)	$	7,166	$	6,040		19		$	20,430	$	18,013		13
Average loans (in billions)		220.0		181.8		21			209.5		177.7		18
Average core deposits (in billions)		215.7		184.4		17			206.0		180.5		14

For 2002, the first quarter transitional goodwill impairment charge of $276 million, accounted for as a cumulative effect of change in accounting principle, is excluded above and in the text and tables on pages 1-9 of this release.

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SAN FRANCISCO — Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $.92 for third quarter 2003, compared with $.84 in third quarter 2002, up 10 percent. Net income was a record $1.6 billion, up 8 percent from $1.4 billion in third quarter 2002. For the first nine months of 2003, net income was a record $4.6 billion, up 8 percent from the first nine months of 2002, and diluted earnings per share were a record $2.70, up 10 percent from the prior year.

               “Our outstanding third quarter results demonstrate once again that the key to the bottom line is actually the top line,” said Chairman and CEO Dick Kovacevich. “Revenue increased 19 percent in the third quarter from the prior year and was up 13 percent year-to-date from the prior year. Achieving nine consecutive quarters of record revenue and profits reflects the hard work of our 139,000 team members in earning more and more of their customers’ business. Our consistent double-digit revenue and EPS growth continued to be among the very best not only in the financial services industry but inanyindustry.

               Reflecting the strength and consistency of our financial performance, we increased our common stock dividend by 50 percent during the quarter and Wells Fargo Bank, N.A. became the only ‘Aaa’-rated bank in the U.S., making us the first U.S. bank to be upgraded by Moody’s to their highest credit since 1995. Our strong dividend and ‘Aaa’ bank rating validate our long-time business model — a well-diversified, customer-centric financial services company, much more than just a bank. Our ability to deliver superior value to our customers enables us to deliver superior value to all our stakeholders.”

Financial Performance

               Diluted earnings per share were $.92, up 10 percent from $.84 in third quarter 2002. “EPS has now grown at a double-digit rate for nine consecutive quarters,” said Chief Financial Officer Howard Atkins. “Moreover, taking advantage of interest rates and equity markets, the Company took a number of strategic actions in the quarter which will benefit future financial performance but which had the effect of reducing third quarter 2003 earnings by $171 million after-tax, or $.10 per share. These actions included repositioning the bond portfolio, retiring $1.8 billion of term debt previously issued at higher costs, contributing approximately 40 percent of our public stock portfolio to the Wells Fargo Foundation (a tax-efficient way of funding this expense), consolidating certain Company-owned facilities and operations to reduce future occupancy and operating costs, and renegotiating certain vendor contracts to reduce on-going equipment and software expenses. The $.10 per share reduction in earnings from these actions, which will benefit future financial performance, includes both revenue and expense impacts and is after tax benefits derived from the public stock donations.”

Revenue

               Revenue of $7.2 billion grew $1.1 billion, or 19 percent, from third quarter 2002 and accelerated to 24 percent growth (annualized) on a linked-quarter basis. Residential mortgage banking revenue accounted for 58 percent of consolidated revenue growth from third quarter 2002, while the strategic actions taken in the quarter reduced third quarter 2003 revenue by $100 million, or 9 percent of the total year-over-year growth. “Apart from the strategic actions and mortgage banking, the rest of our business lines combined grew revenue at a double-digit pace from third quarter 2002 and on a linked quarter basis, reflecting the breadth and strength of our business,” said Atkins.

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Loans

               Average loans of $220.0 billion for third quarter 2003 increased $38.2 billion, or 21 percent, from third quarter 2002. “Consumer demand for credit, particularly home equity, residential first mortgages, other revolving credit and installment loans, remained robust,” said Atkins. On a combined basis, average consumer loans and real estate first mortgage loans increased almost $37.4 billion, or 41 percent, from the same period last year. This included 32 percent growth for home equity, 11 percent growth for credit cards, and 28 percent growth for other revolving credit and installment loans. Average commercial loans remained essentially flat, increasing 1 percent from a year ago.

Deposits

               Average core deposits grew $31 billion, or 17 percent, year-over-year. Excluding mortgage escrow deposits, average core deposits grew $20 billion from third quarter 2002, primarily driven by a 32 percent increase in consumer and business noninterest-bearing checking balances. Average interest-bearing core deposits, including interest-bearing checking accounts, CDs, market rate accounts and other savings products, grew 9 percent.

Net Interest Income

               Net interest income grew $513 million, or 14 percent year-over-year, driven by the 21 percent increase in average loans and the 17 percent increase in average core deposits. “Net interest income grew at a double-digit rate, reflecting continued strong growth in consumer loans, mortgages held for sale and noninterest-bearing and market-rate and other savings deposits,” said Atkins. On a linked-quarter basis, the net interest margin declined from 5.12 percent to 5.03 percent. The pace of decline in the margin slowed from prior quarters and the margin stabilized toward the end of the quarter, in part due to the actions taken to reposition the bond portfolio and retire higher-cost term debt.

Noninterest Income

               Noninterest income in third quarter 2003 increased $613 million, or 26 percent, from a year ago. Linked-quarter growth accelerated to 37 percent (annualized). The strategic actions taken in the quarter reduced third quarter 2003 noninterest income by $100 million, or 3 percent. “Fee-based income growth was solid across the board,” said Atkins. “Residential mortgage banking fees were up $302 million, accounting for half of the overall 26 percent increase in fee income from a year ago. Growth in mortgage fee income reflected an 81 percent increase in originations from a year ago as well as, more recently, growth in servicing fees due to increases in both the size and estimated duration of the servicing portfolio. Trust and investment fees were up 9 percent from a year ago and 29 percent (annualized) on a linked-quarter basis, reflecting the impact of higher equity market values on our assets under management, and our successful efforts to better serve clients by adding more Series 7 licensed bankers and private bankers. Insurance fees increased 8 percent from a year ago, but declined on a linked-quarter basis due to normal seasonality in our crop insurance business. Deposit service fees, credit card fees and credit line fees all exhibited strong growth due to brisk business and successful cross-sell,” said Atkins.

Noninterest Expense

               Noninterest expense was $4.4 billion in third quarter 2003, up $993 million, or 29 percent, from a year ago. The strategic actions taken in third quarter 2003 accounted for $233 million, or 23 percent, of the year-over-year growth in expenses. “The strategic actions we took in the quarter are part of our on-going efforts to improve operating efficiency and will

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reduce future donation expenses, occupancy costs and equipment and software costs. Approximately 47 percent of year-over-year expense growth was due to the 81 percent growth in residential mortgage origination volume compared with a year ago. These mortgage-related expenses, which are tied to production and application volumes, are largely variable costs and would be expected to decline over time if mortgage volumes slow,” said Atkins. The third quarter 2003 efficiency ratio was 61 percent. The strategic actions, which reduced revenue by $100 million and increased expenses by $233 million, accounted for approximately 4 percent of this ratio.

Credit Quality

               “Credit quality continued to improve in the third quarter with further reductions in nonperforming assets and further improvements in loss rates,” said Chief Credit Officer Dave Munio. Nonperforming assets at September 30, 2003 were $1,723 million (.74 percent of total loans), down $38 million from the prior quarter and down $14 million from a year ago. Net credit losses were $434 million (.78 percent of average total loans), compared with $424 million in second quarter 2003 (.81 percent of average total loans) and $415 million a year ago (.91 percent of average total loans). “Given the substantial growth in our consumer portfolios in the last two years, we are extremely pleased with the continued improvement in overall loss rates — which at quarter end stood at the lowest level since second quarter 2000 — although there can be no assurance that loss rates will remain low as these high-growth consumer portfolios season over time. The allowance for loan losses, at $3.9 billion, continued to provide over two times coverage of both nonperforming loans and annualized net charge-offs. We believe that our portfolio diversity and granularity coupled with our culture of disciplined risk management contributed to our stable and satisfactory credit results.”

Business Segment Performance

               Wells Fargo has three lines of business for management reporting: Community Banking, Wholesale Banking and Wells Fargo Financial. More financial information about the business segments is on pages 19 and 28.

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

Selected Financial Information
	Third Quarter							Nine months ended September 30						,
					%							%
(in millions)	2003		2002		Change			2003		2002		Change
Total revenue	$	5,202	$	4,408		18		$	14,791	$	12,949		14
Provision for loan losses		221		180		23			681		648		5
Noninterest expense		3,428		2,574		33			9,289		7,579		23
Net income		1,065		1,073		(1	)		3,183		3,060		4
Average loans (in billions)		149.8		117.1		28			140.8		113.4		24
Average assets (in billions)		290.3		226.4		28			271.9		222.5		22

• Strong sales performance

o Record core product sales, up 9 percent from a year ago

o Record sales per platform banker of 5 sales per day

o Retail core deposits up over 9 percent year over year (excludes mortgage escrows)

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• 300 platform bankers added in Q3

• Regulatory approval received for Pacific Northwest Bancorp and Two Rivers Corporation acquisitions

• Internet highlights:

o Won Forrester Research’s award for the best cross-channel customer experience, alongside retailers Macy’s and Lands’ End

o Reached 4.6 million active online consumer customers, up 40 percent from a year ago

o New online brokerage accounts opened in Q3 increased 23 percent from a year ago

o Reached 387,000 active online small business customers, up 52 percent from a year ago

o Online merchant card processing volume reached $3 billion in Q3 2003, up 115 percent from a year ago

               Community Banking reported net income of $1,065 million in third quarter 2003, compared with $1,073 million for the same period in 2002. Net income for third quarter 2003 reflected the strategic actions taken in the third quarter, which reduced Community Banking’s net income $170 million. Third quarter 2003 net income also reflected an increase in year-over-year earnings of $108 million from residential home mortgages. The balance of Community Banking net income growth from third quarter 2002 was primarily due to the impact of consumer loan and deposit growth, net of the impact of narrower deposit spreads. Community Banking’s revenue was up 18 percent from the third quarter of last year. Net interest income increased by $392 million, or 15 percent, compared with third quarter 2002, primarily due to growth in consumer loans, mortgages held for sale and deposits. Noninterest income was up $402 million, or 23 percent, in third quarter 2003, compared with 2002. The strategic actions taken in the quarter reduced noninterest income in third quarter 2003 by $100 million. Noninterest expense increased by $854 million in third quarter 2003, or 33 percent, compared with the same period of 2002. The increase in noninterest income and noninterest expense was due primarily to increased mortgage originations. The strategic actions taken during the quarter accounted for $231 million, or 7 percent, of noninterest expense for third quarter 2003. The provision for loan losses increased by $41 million in third quarter 2003, compared with third quarter 2002, due to 28 percent growth in average loans.

               “Thanks to the dedication of our team, we achieved record retail sales results for the third quarter, with almost 3.2 million core sales, up 9 percent from the same period last year,” said John Stumpf, Group EVP, Community Banking. “Sales per platform banker reached an all time quarterly high of over 5 sales per day, and we added more than 300 platform bankers this quarter to better serve our customers. We now have 4.6 million retail online banking customers, 387,000 small business online banking customers, and 1.5 million bill payment and presentment customers enjoying the benefits of these award-winning services. We are installing an additional 1,100 internet-enabled computers so that by year-end, bankers in 2,200 stores can demonstrate these convenient services to our customers on the spot. We received shareholder and regulatory approval for our acquisition of Pacific Northwest Bancorp, and expect to complete the acquisition by the end of this month.”

               “The Wells Fargo residential real estate businesses originated $161 billion in the third quarter, surpassing the previous industry record of $135 billion set by Wells Fargo in the second quarter of this year,” said Mark Oman, Group EVP, Home and Consumer Finance.

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“Year to date we have originated an industry record of $399 billion, already surpassing the $333 billion we originated for all of last year. Our goal continues to be to satisfy the housing requirements of all Americans. In addition to being the nation’s top mortgage originator for the fourth consecutive year, Wells Fargo Home Mortgage ranks first in originations to minority borrowers, first in originations to low-to-moderate income borrowers and first in originations in low-to-moderate income geographies.”

               Wells Fargo’s owned mortgage servicing portfolio rose to $674 billion, up 18 percent from a year ago. Reflecting the growth in the servicing portfolio, replacement of lower value, high note rate loans with higher value, low note rate loans and the increase in fair value resulting from the increase in mortgage rates, the carrying value of mortgage servicing rights increased from $3.8 billion at June 30, 2003 (.73 percent of loans serviced for others) to $5.8 billion at September 30, 2003 (1.03 percent of loans serviced for others). The average note rate for the portfolio declined 25 basis points in the quarter to an all-time record low of 5.98 percent at September 30, 2003. “Given the record low note rate and increased duration of the servicing portfolio, we believe the servicing asset has tremendous value at today’s interest rate levels,” said Oman.

               Wholesale Bankingprovides businesses across the United States, predominantly with annual sales in excess of $10 million, with a complete line of commercial, corporate, treasury management, investment, insurance brokerage, capital markets and real estate banking products and services.

Selected Financial Information
	Third Quarter							Nine months ended September 30						,
					%							%
(in millions)		2003		2002		Change			2003		2002		Change
Total revenue	$	1,263	$	1,068		18		$	3,682	$	3,419		8
Provision for loan losses		54		60		(10	)		154		218		(29	)
Noninterest expense		629		564		12			1,885		1,747		8
Net income		372		285		31			1,063		933		14
Average loans (in billions)		49.0		49.1		—			49.4		49.5		—
Average assets (in billions)		75.7		71.3		6			76.1		70.3		8

• Record net income for Wholesale Banking

• Corporate Banking deposits up 48 percent from a year ago

• Century Business Credit becomes Wells Fargo Century, Inc.

• Global Financemagazine named Wells Fargo “Best Commercial Internet Bank”

• Key acquisitions for institutional investments and insurance brokerage

               Wholesale Banking reported earnings of $372 million in third quarter 2003, up 31 percent from third quarter 2002. Third quarter revenue was $1.3 billion, up 18 percent from third quarter 2002. Third quarter expenses were up 12 percent from third quarter 2002. Reflecting a relatively stable credit environment, nonperforming assets declined 15 percent, from $813 million at September 30, 2002 to $692 million at September 30, 2003. The provision for loan losses in third quarter 2003 declined $6 million from a year ago.

               “Our team members delivered record quarterly earnings and outstanding results for Wholesale Banking despite continued flat loan demand,” said Dave Hoyt, Group EVP, Wholesale Banking. To leverage the strength of the Wells Fargo brand, Wholesale Banking’s

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Century Business Credit unit, part of the asset-based lending group, changed its name to Wells Fargo Century, Inc. It is one of the largest bank-owned factoring companies in the U.S. and provides factoring, commercial and trade finance to middle-market businesses across the country.

               “In addition to new business acquisition and a continued focus on delivering outstanding customer service,” said Hoyt, “one of our primary goals is to improve cross-sell with existing relationships. To achieve this, we’ve focused on making it easier for customers to bring us more of their business and on helping customers realize efficiencies. Our progress is being recognized in the marketplace.Global Financemagazine named Wells Fargo the Best Commercial Internet Bank in the United States. We also were named the best integrated Web site, for both consumer and corporate banking and received Forrester Research’s award for the best cross-channel integration capabilities. Wells Fargo Institutional Trust Services was ranked number two in customer satisfaction in a global list of top rated 401(k) plan administrators and number five as a mutual fund manager, according to a survey by 401kExchange, a research and marketing firm.”

               Hoyt said Wholesale Banking continues to improve the breadth and depth of its product offering to satisfy all the financial services needs of its customers. During the quarter, Wells Fargo agreed to acquire Benson Associates, LLC, a Portland, Oregon-based asset-management company with $1.3 billion in equity assets under management and Wells Fargo subsidiary Acordia, Inc., America’s largest bank-owned insurance brokerage, acquired four insurance brokerages in Texas, Nebraska and Pennsylvania.

               Wells Fargo Financialoffers consumer and commercial finance, leasing, private label credit cards and dealer financing in 47 states, Canada, and the Caribbean.

Selected Financial Information
	Third Quarter						Nine months ended September 30						,
					%						%
(in millions)	2003		2002		Change		2003		2002		Change
Total revenue	$	696	$	572		22	$	1,955	$	1,643		19
Provision for loan losses		159		155		3		448		429		4
Noninterest expense		343		268		28		973		810		20
Net income		121		92		32		332		251		32
Average loans (in billions)		21.2		15.6		36		19.3		14.8		30
Average assets (in billions)		22.9		17.4		32		21.1		16.6		27

• Net income up 32 percent from a year ago

• Strong loan growth of 11 percent from prior quarter

o Real estate secured receivables up $1.0 billion

o Auto receivables up $.9 billion

               “Wells Fargo Financial’s third quarter net income increased 32 percent over the same period last year, to $121 million,” said Mark Oman, Group EVP, Home and Consumer Finance. “This very strong growth reflected the benefits of the changes made to the business models which allowed the point-of-sale team members to focus on their core capability of selling, supported by strong centralized collections, operations, analytics and controls. The changes to the business model fueled growth in the real estate and auto markets, which increased receivables to $22.4 billion at September 30, 2003.” Receivables increased

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$2.2 billion in the third quarter and $5.5 billion during the first nine months of 2003 from the same periods of 2002.

Recorded Message

               A recorded message reviewing Wells Fargo’s results will be available today at 5:30 a.m. Pacific time through Friday, October 24 at Midnight, Pacific Time. Dial 800-642-1687 (domestic) or 706-645-9291 (international). Access code 3141348. The call is also available on the internet atwww.wellsfargo.com/invest_relations/earnings andwww.vcall.com.

               Certain amounts for prior quarters have been reclassified to conform with the current financial statement presentation.

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

               This news release contains forward-looking statements about the Company. Forward-looking statements consist of descriptions of plans or objectives for future operations, products or services, forecasts of revenues, earnings or other measures of economic performance, and assumptions underlying or relating to any of the foregoing. Because forward-looking statements discuss future events or conditions and not historical facts, they often include words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” or similar expressions. Examples of forward-looking statements in this release are the statements about the expected benefits of the strategic actions taken in the third quarter 2003 and various statements about future credit losses and credit quality.

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

               There are several factors—many beyond the Company’s control—that could cause results to differ significantly from the Company’s expectations. Factors such as credit, market, operational, liquidity, interest rate and other risks are described in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2003 and Annual Report on Form 10-K for the year ended December 31, 2002, including information incorporated into the Form 10-K from the Company’s 2002 Annual Report to Stockholders, filed as Exhibit 13 to the Form 10-K. See, for example, Items 2 and 3 of the Form 10-Q and “Financial Review—Risk Management” included in the 2002 Annual Report to Stockholders and incorporated by reference into the Form 10-K.

               Other factors described in the Form 10-Q and Form 10-K include · business and economic conditions · fiscal and monetary policies · legislation and regulation · disintermediation · competition generally and in light of the Gramm-Leach-Bliley Act ·

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potential dividend restrictions · market acceptance and regulatory approval of new products and services · non-banking activities · reliance on other companies for infrastructure components · integration of acquired companies · attracting and retaining key personnel · stock price volatility. See, for example, “Factors That May Affect Future Results” in the Form 10-Q and “Regulation and Supervision” in the Form 10-K.

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

Wells Fargo & Company is a diversified financial services company with $391 billion in assets, providing banking, insurance, investments, mortgage and consumer finance from more than 5,900 stores and the Internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only “Aaa”-rated bank in the United States.

Visit Wells Fargo atwww.wellsfargo.com

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Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
	Quarter ended Sept. 30					,	%			Nine months ended Sept. 30					,	%
(in millions, except per share amounts)	2003			2002			Change			2003			2002			Change
For the Period
Before effect of change in accounting principle(1)
Net income	$	1,561		$	1,444			8	%	$	4,578		$	4,244			8	%
Diluted earnings per common share		.92			.84			10			2.70			2.46			10
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.57	%		1.78	%		(12	)		1.63	%		1.80	%		(9	)
Net income applicable to common stock to average common stockholders’ equity (ROE)		18.86			19.38			(3	)		19.39			19.69			(2	)
After effect of change in accounting principle
Net income	$	1,561		$	1,444			8		$	4,578		$	3,968			15
Diluted earnings per common share		.92			.84			10			2.70			2.30			17
Profitability ratios (annualized)
ROA		1.57	%		1.78	%		(12	)		1.63	%		1.68	%		(3	)
ROE		18.86			19.38			(3	)		19.39			18.41			5
Efficiency ratio (2)		61.4			56.4			9			59.5			56.3			6
Total revenue	$	7,166		$	6,040			19		$	20,430		$	18,013			13
Dividends declared per common share		.45			.28			61			1.05			.82			28
Average common shares outstanding		1,677.2			1,700.7			(1	)		1,678.0			1,704.7			(2	)
Diluted average common shares outstanding		1,693.9			1,717.8			(1	)		1,692.6			1,722.6			(2	)
Average loans	$	220,027		$	181,782			21		$	209,453		$	177,749			18
Average assets		395,057			321,217			23			375,272			315,568			19
Average core deposits		215,685			184,448			17			206,041			180,521			14
Net interest margin		5.03	%		5.52	%		(9	)		5.14	%		5.62	%		(9	)
At Period End
Securities available for sale	$	30,260		$	32,974			(8	)	$	30,260		$	32,974			(8	)
Loans		231,844			186,310			24			231,844			186,310			24
Allowance for loan losses		3,893			3,861			1			3,893			3,861			1
Goodwill		9,849			9,744			1			9,849			9,744			1
Assets		390,813			334,250			17			390,813			334,250			17
Core deposits		209,422			190,606			10			209,422			190,606			10
Common stockholders’ equity		32,316			30,016			8			32,316			30,016			8
Stockholders’ equity		32,372			30,074			8			32,372			30,074			8
Capital ratios
Common stockholders’ equity to assets		8.27	%		8.98	%		(8	)		8.27	%		8.98	%		(8	)
Stockholders’ equity to assets		8.28			9.00			(8	)		8.28			9.00			(8	)
Risk-based capital (3)
Tier 1 capital		8.09			7.84			3			8.09			7.84			3
Total capital		11.54			11.39			1			11.54			11.39			1
Tier 1 leverage (3)		6.44			6.83			(6	)		6.44			6.83			(6	)
Book value per common share	$	19.27		$	17.67			9		$	19.27		$	17.67			9
Staff (active, full-time equivalent)		139,200			125,700			11			139,200			125,700			11
Common Stock Price
High	$	53.71		$	54.84			(2	)	$	53.71		$	54.84			(2	)
Low		48.90			38.10			28			43.27			38.10			14
Period end		51.50			48.16			7			51.50			48.16			7

(1)	Change in accounting principle relates to transitional goodwill impairment charge recorded in first quarter 2002 related to the adoption of FAS 142,Goodwill and Other Intangible Assets.
(2)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(3)	The September 30, 2003 ratios are preliminary.

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Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
	Quarter ended Sept. 30					,	%			Nine months ended Sept. 30					,	%
(in millions, except per share amounts)	2003			2002			Change			2003			2002			Change
INTEREST INCOME
Securities available for sale	$	470		$	582			(19	)%	$	1,358		$	1,893			(28	)%
Mortgages held for sale		906			591			53			2,585			1,622			59
Loans held for sale		57			52			10			191			194			(2	)
Loans		3,548			3,400			4			10,440			10,072			4
Other interest income		64			74			(14	)		205			225			(9	)
Total interest income		5,045			4,699			7			14,779			14,006			6
INTEREST EXPENSE
Deposits		384			483			(20	)		1,236			1,459			(15	)
Short-term borrowings		72			124			(42	)		254			429			(41	)
Long-term debt		349			367			(5	)		1,020			1,041			(2	)
Guaranteed preferred beneficial interests in Company’s subordinated debentures		32			30			7			88			88			—
Total interest expense		837			1,004			(17	)		2,598			3,017			(14	)
NET INTEREST INCOME		4,208			3,695			14			12,181			10,989			11
Provision for loan losses		434			395			10			1,283			1,295			(1	)
Net interest income after provision for loan losses		3,774			3,300			14			10,898			9,694			12
NONINTEREST INCOME
Service charges on deposit accounts		607			560			8			1,747			1,612			8
Trust and investment fees		504			462			9			1,433			1,395			3
Credit card fees		251			242			4			752			666			13
Other fees		422			372			13			1,161			1,009			15
Mortgage banking		773			426			81			1,877			1,198			57
Insurance		252			234			8			807			766			5
Net (losses) gains on debt securities available for sale		(23	)		121			—			16			202			(92	)
Net gains (losses) from equity investments		58			(152	)		—			(87	)		(230	)		(62	)
Other		114			80			43			543			406			34
Total noninterest income		2,958			2,345			26			8,249			7,024			17
NONINTEREST EXPENSE
Salaries		1,185			1,110			7			3,481			3,292			6
Incentive compensation		621			446			39			1,571			1,165			35
Employee benefits		374			304			23			1,143			997			15
Equipment		298			232			28			871			697			25
Net occupancy		283			278			2			867			821			6
Net losses on dispositions of premises and equipment		4			—			—			10			26			(62	)
Other		1,635			1,037			58			4,206			3,141			34
Total noninterest expense		4,400			3,407			29			12,149			10,139			20
INCOME BEFORE INCOME TAX EXPENSE AND EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE		2,332			2,238			4			6,998			6,579			6
Income tax expense		771			794			(3	)		2,420			2,335			4
NET INCOME BEFORE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE		1,561			1,444			8			4,578			4,244			8
Cumulative effect of change in accounting principle		—			—			—			—			(276	)		(100	)
NET INCOME	$	1,561		$	1,444			8	%	$	4,578		$	3,968			15	%
NET INCOME APPLICABLE TO COMMON STOCK	$	1,560		$	1,443			8	%	$	4,575		$	3,965			15	%
EARNINGS PER COMMON SHARE BEFORE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
Earnings per common share	$	.93		$	.85			9	%	$	2.73		$	2.49			10	%
Diluted earnings per common share	$	.92		$	.84			10	%	$	2.70		$	2.46			10	%
EARNINGS PER COMMON SHARE
Earnings per common share	$	.93		$	.85			9	%	$	2.73		$	2.33			17	%
Diluted earnings per common share	$	.92		$	.84			10	%	$	2.70		$	2.30			17	%
DIVIDENDS DECLARED PER COMMON SHARE	$	.45		$	.28			61	%	$	1.05		$	.82			28	%
Average common shares outstanding		1,677.2			1,700.7			(1	)%		1,678.0			1,704.7			(2	)%
Diluted average common shares outstanding		1,693.9			1,717.8			(1	)%		1,692.6			1,722.6			(2	)%

-12-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
										% Change
										Sept. 30, 2003 from
	Sept. 30		,	Dec. 31,			Sept. 30		,	Dec. 31,			Sept. 30		,
(in millions, except shares)	2003			2002			2002			2002			2002
ASSETS
Cash and due from banks	$	15,423		$	17,820		$	15,813			(13	)%		(2	)%
Federal funds sold and securities purchased under resale agreements		2,692			3,174			4,047			(15	)		(33	)
Securities available for sale		30,260			27,947			32,974			8			(8	)
Mortgages held for sale		55,328			51,154			42,339			8			31
Loans held for sale		7,310			6,665			5,522			10			32
Loans		231,844			196,634			186,310			18			24
Allowance for loan losses		3,893			3,862			3,861			1			1
Net loans		227,951			192,772			182,449			18			25
Mortgage servicing rights, net		5,765			4,489			4,415			28			31
Premises and equipment, net		3,517			3,688			3,664			(5	)		(4	)
Goodwill		9,849			9,753			9,744			1			1
Other assets		32,718			31,797			33,283			3			(2	)
Total assets	$	390,813		$	349,259		$	334,250			12	%		17	%
LIABILITIES
Noninterest-bearing deposits	$	77,175		$	74,094		$	69,382			4	%		11	%
Interest-bearing deposits		174,261			142,822			136,374			22			28
Total deposits		251,436			216,916			205,756			16			22
Short-term borrowings		25,589			33,446			30,370			(23	)		(16	)
Accrued expenses and other liabilities		18,839			18,334			19,341			3			(3	)
Long-term debt		58,992			47,320			45,824			25			29
Guaranteed preferred beneficial interests in Company’s subordinated debentures		3,585			2,885			2,885			24			24
Total liabilities		358,441			318,901			304,176			12			18
STOCKHOLDERS’ EQUITY
Preferred stock		319			251			294			27			9
Unearned ESOP shares		(263	)		(190	)		(236	)		38			11
Total preferred stock		56			61			58			(8	)		(3	)
Common stock — $1-2/3 par value, authorized 6,000,000,000 shares; issued 1,736,381,025 shares		2,894			2,894			2,894			—			—
Additional paid-in capital		9,532			9,498			9,499			—			—
Retained earnings		22,103			19,394			18,441			14			20
Cumulative other comprehensive income		572			976			1,070			(41	)		(47	)
Treasury stock – 59,314,051 shares, 50,474,518 shares and 37,900,563 shares		(2,785	)		(2,465	)		(1,888	)		13			48
Total stockholders’ equity		32,372			30,358			30,074			7			8
Total liabilities and stockholders’ equity	$	390,813		$	349,259		$	334,250			12	%		17	%

-13-

Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
	Nine months ended Sept. 30					,
(in millions)	2003			2002
Balance, beginning of period	$	30,358		$	27,214
Net income		4,578			3,968
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		20			—
Change in valuation allowance related to:
Investment securities and other retained interests		(77	)		514
Derivative instruments and hedging activities		(347	)		(196	)
Common stock issued		587			481
Common stock issued for acquisitions		6			535
Common stock repurchased		(1,289	)		(1,206	)
Preferred stock released to ESOP		192			163
Preferred stock dividends		(3	)		(3	)
Common stock dividends		(1,764	)		(1,399	)
Change in Rabbi trust assets and similar arrangements (classified as treasury stock)		111			3
Balance, end of period	$	32,372		$	30,074

LOANS
	Sept. 30		,	Dec. 31,		Sept. 30		,
(in millions)	2003			2002		2002
Commercial	$	47,720		$	47,292	$	46,827
Real estate 1-4 family first mortgage		59,680			40,976		33,773
Other real estate mortgage		25,723			25,312		25,233
Real estate construction		7,777			7,804		7,887
Consumer:
Real estate 1-4 family junior lien mortgage		40,681			31,290		30,193
Credit card		7,836			7,455		7,033
Other revolving credit and installment		31,919			26,353		24,912
Total consumer		80,436			65,098		62,138
Lease financing		8,185			8,241		8,593
Foreign		2,323			1,911		1,859
Total loans (net of unearned income)	$	231,844		$	196,634	$	186,310

-14-

Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
	Quarter ended									Nine months ended
	Sept. 30		,	Jun. 30		,	Sept. 30		,	Sept. 30		,	Sept. 30		,
(in millions)	2003			2003			2002			2003			2002
Balance, beginning of period	$	3,894		$	3,887		$	3,883		$	3,862		$	3,761
Allowances related to business combinations/other		(1	)		7			(2	)		31			93
Provision for loan losses		434			424			395			1,283			1,295
Loan charge-offs:
Commercial		(136	)		(147	)		(159	)		(437	)		(534	)
Real estate 1-4 family first mortgage		(8	)		(6	)		(3	)		(22	)		(18	)
Other real estate mortgage		(12	)		(9	)		(2	)		(23	)		(14	)
Real estate construction		(2	)		(3	)		(9	)		(8	)		(34	)
Consumer:
Real estate 1-4 family junior lien mortgage		(19	)		(22	)		(14	)		(63	)		(43	)
Credit card		(109	)		(116	)		(99	)		(337	)		(307	)
Other revolving credit and installment		(206	)		(198	)		(212	)		(602	)		(595	)
Total consumer		(334	)		(336	)		(325	)		(1,002	)		(945	)
Lease financing		(26	)		(24	)		(21	)		(76	)		(68	)
Foreign		(29	)		(25	)		(19	)		(74	)		(63	)
Total loan charge-offs		(547	)		(550	)		(538	)		(1,642	)		(1,676	)
Loan recoveries:
Commercial		31			37			36			106			120
Real estate 1-4 family first mortgage		1			1			1			2			4
Other real estate mortgage		2			3			3			7			12
Real estate construction		2			4			10			11			19
Consumer:
Real estate 1-4 family junior lien mortgage		7			6			4			18			12
Credit card		13			13			12			38			36
Other revolving credit and installment		46			50			49			145			158
Total consumer		66			69			65			201			206
Lease financing		6			7			4			19			16
Foreign		5			5			4			13			11
Total loan recoveries		113			126			123			359			388
Net loan charge-offs		(434	)		(424	)		(415	)		(1,283	)		(1,288	)
Balance, end of period	$	3,893		$	3,894		$	3,861		$	3,893		$	3,861
Net loan charge-offs (annualized) as a percentage of average total loans		.78	%		.81	%		.91	%		.82	%		.97	%
Allowance as a percentage of total loans		1.68	%		1.81	%		2.07	%		1.68	%		2.07	%
Allowance as a percentage of nonaccrual loans		257	%		249	%		249	%		257	%		249	%
Allowance as a percentage of nonaccrual loans and other assets		226	%		221	%		222	%		226	%		222	%

-15-

Wells Fargo & Company and Subsidiaries
NONACCRUAL LOANS AND OTHER ASSETS
	Sept. 30		,	Dec. 31,			Sept. 30		,
(in millions)	2003			2002			2002
Nonaccrual loans:
Commercial	$	713		$	796		$	840
Real estate 1-4 family first mortgage		203			214			215
Other real estate mortgage		267			192			198
Real estate construction		48			93			112
Consumer:
Real estate 1-4 family junior lien mortgage		134			65			39
Other revolving credit and installment		78			48			55
Total consumer		212			113			94
Lease financing		71			79			85
Foreign		3			5			5
Total nonaccrual loans		1,517			1,492			1,549
As a percentage of total loans		.65	%		.76	%		.83	%
Foreclosed assets		200			201			186
Real estate investments (1)		6			4			2
Total nonaccrual loans and other assets	$	1,723		$	1,697		$	1,737
As a percentage of total loans		.74	%		.86	%		.93	%

(1) Represents the amount of real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if such assets were recorded as loans. Real estate investments totaled $9 million, $9 million and $11 million at September 30, 2003, December 31, 2002 and September 30, 2002, respectively.

-16-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
	Quarter ended Sept. 30					,	%			Nine months ended Sept. 30					,	%
(in millions)	2003			2002			Change			2003			2002			Change
Service charges on deposit accounts	$	607		$	560			8	%	$	1,747		$	1,612			8	%
Trust and investment fees:
Trust, investment and IRA fees		348			327			6			995			1,004			(1	)
Commissions and all other fees		156			135			16			438			391			12
Total trust and investment fees		504			462			9			1,433			1,395			3
Credit card fees		251			242			4			752			666			13
Other fees:
Cash network fees		48			47			2			136			139			(2	)
Charges and fees on loans		199			160			24			565			432			31
All other		175			165			6			460			438			5
Total other fees		422			372			13			1,161			1,009			15
Mortgage banking:
Origination and other closing fees		393			271			45			1,003			696			44
Servicing fees, net of amortization and provision for impairment		(82	)		(158	)		(48	)		(1,266	)		(279	)		354
Net gains on mortgage loan origination/sales activities		319			226			41			1,787			519			244
All other		143			87			64			353			262			35
Total mortgage banking		773			426			81			1,877			1,198			57
Insurance		252			234			8			807			766			5
Net (losses) gains on debt securities available for sale		(23	)		121			—			16			202			(92	)
Net gains (losses) from equity investments		58			(152	)		—			(87	)		(230	)		(62	)
Net gains on sales of loans		19			7			171			23			15			53
Net (losses) gains on dispositions of operations		—			(9	)		(100	)		27			(6	)		—
All other		95			82			16			493			397			24
Total	$	2,958		$	2,345			26	%	$	8,249		$	7,024			17	%

NONINTEREST EXPENSE
	Quarter ended Sept. 30				,	%			Nine months ended Sept. 30				,	%
(in millions)	2003		2002			Change			2003		2002			Change
Salaries	$	1,185	$	1,110			7	%	$	3,481	$	3,292			6	%
Incentive compensation		621		446			39			1,571		1,165			35
Employee benefits		374		304			23			1,143		997			15
Equipment		298		232			28			871		697			25
Net occupancy		283		278			2			867		821			6
Net losses on dispositions of premises and equipment		4		—			—			10		26			(62	)
Outside professional services		122		108			13			345		309			12
Contract services		270		129			109			675		353			91
Outside data processing		105		91			15			306		262			17
Telecommunications		92		94			(2	)		256		263			(3	)
Travel and entertainment		98		85			15			275		243			13
Advertising and promotion		98		85			15			274		229			20
Postage		94		65			45			265		189			40
Stationery and supplies		62		51			22			173		164			5
Insurance		48		29			66			166		141			18
Operating losses		29		40			(28	)		149		115			30
Security		41		41			—			125		121			3
Core deposit intangibles		35		38			(8	)		107		118			(9	)
All other		541		181			199			1,090		634			72
Total	$	4,400	$	3,407			29	%	$	12,149	$	10,139			20	%

-17-

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
	Quarter ended Sept. 30																,
	2003								2002
							Interest								Interest
	Average			Yields/			income/		Average			Yields/			income/
(in millions)	balance			rates			expense		balance			rates			expense
EARNING ASSETS
Federal funds sold and securities purchased under resale agreements	$	2,514			.88	%	$	6	$	2,641			1.72	%	$	11
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,283			4.59			14		1,719			5.48			23
Securities of U.S. states and political subdivisions		2,442			8.92			51		2,123			8.21			41
Mortgage-backed securities:
Federal agencies		18,538			7.50			334		26,037			7.20			445
Private collateralized mortgage obligations		1,972			5.25			25		2,119			7.20			37
Total mortgage-backed securities		20,510			7.28			359		28,156			7.20			482
Other debt securities (4)		3,540			7.89			64		2,883			7.87			58
Total debt securities available for sale (4)		27,775			7.37			488		34,881			7.23			604
Mortgages held for sale (3)		69,786			5.18			906		38,384			6.15			591
Loans held for sale (3)		7,124			3.17			57		5,302			3.92			52
Loans:
Commercial		46,947			6.04			714		46,323			6.76			789
Real estate 1-4 family first mortgage		51,936			4.62			601		31,366			5.94			466
Other real estate mortgage		25,635			5.33			343		25,389			6.09			389
Real estate construction		7,775			4.98			98		7,843			5.74			114
Consumer:
Real estate 1-4 family junior lien mortgage		38,393			6.56			635		29,192			7.71			567
Credit card		7,683			12.11			233		6,898			12.35			213
Other revolving credit and installment		31,053			8.81			689		24,251			10.24			625
Total consumer		77,129			8.02			1,557		60,341			9.26			1,405
Lease financing		8,343			6.52			136		8,678			7.03			153
Foreign		2,262			18.01			102		1,842			18.79			87
Total loans (5)		220,027			6.42			3,551		181,782			7.44			3,403
Other		8,905			2.60			58		6,814			3.65			63
Total earning assets	$	336,131			6.02			5,066	$	269,804			7.01			4,724
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,592			.20			1	$	2,464			.44			3
Market rate and other savings		108,969			.61			166		94,768			1.00			238
Savings certificates		20,429			2.43			125		23,813			3.05			183
Other time deposits		27,633			1.11			78		9,068			1.88			43
Deposits in foreign offices		5,643			1.00			14		3,949			1.62			16
Total interest-bearing deposits		165,266			.92			384		134,062			1.43			483
Short-term borrowings		29,572			.96			72		29,558			1.66			124
Long-term debt		57,960			2.40			349		43,568			3.36			367
Guaranteed preferred beneficial interests in Company’s subordinated debentures		3,525			3.64			32		2,885			4.17			30
Total interest-bearing liabilities		256,323			1.30			837		210,073			1.90			1,004
Portion of noninterest-bearing funding sources		79,808			—			—		59,731			—			—
Total funding sources	$	336,131			.99			837	$	269,804			1.49			1,004
Net interest margin and net interest income on a taxable-equivalent basis(6)					5.03	%	$	4,229					5.52	%	$	3,720
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,642							$	13,128
Goodwill		9,817								9,741
Other		35,467								28,544
Total noninterest-earning assets	$	58,926							$	51,413
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	83,695							$	63,403
Other liabilities		22,163								18,137
Preferred stockholders’ equity		50								54
Common stockholders’ equity		32,826								29,550
Noninterest-bearing funding sources used to fund earning assets		(79,808	)							(59,731	)
Net noninterest-bearing funding sources	$	58,926							$	51,413
TOTAL ASSETS	$	395,057							$	321,217

(1)	The average prime rate of the Company was 4.00% and 4.75% for the quarters ended September 30, 2003 and 2002, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.13% and 1.81% 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 both quarters presented.

-18-

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
	Nine months ended Sept. 30																,
	2003								2002
							Interest								Interest
	Average			Yields/			income/		Average			Yields/			income/
(in millions)	balance			rates			expense		balance			rates			expense
EARNING ASSETS
Federal funds sold and securities purchased under resale agreements	$	4,005			1.16	%	$	35	$	2,615			1.72	%	$	34
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,288			4.85			45		1,852			5.67			76
Securities of U.S. states and political subdivisions		2,183			8.92			136		2,117			8.27			125
Mortgage-backed securities:
Federal agencies		17,317			7.84			957		28,338			7.10			1,460
Private collateralized mortgage obligations		1,997			6.48			93		2,456			7.13			128
Total mortgage-backed securities		19,314			7.70			1,050		30,794			7.10			1,588
Other debt securities (4)		3,243			7.77			179		3,020			7.73			172
Total debt securities available for sale (4)		26,028			7.67			1,410		37,783			7.15			1,961
Mortgages held for sale (3)		64,609			5.33			2,585		34,036			6.34			1,622
Loans held for sale (3)		7,064			3.62			191		5,236			4.96			194
Loans:
Commercial		47,146			6.13			2,164		46,539			6.91			2,406
Real estate 1-4 family first mortgage		46,512			4.99			1,740		29,722			6.16			1,372
Other real estate mortgage		25,561			5.50			1,052		25,462			6.25			1,191
Real estate construction		7,888			5.16			305		7,936			5.76			342
Consumer:
Real estate 1-4 family junior lien mortgage		35,132			6.82			1,792		26,817			7.82			1,568
Credit card		7,514			12.14			684		6,696			12.32			619
Other revolving credit and installment		29,117			9.17			1,997		23,818			10.37			1,848
Total consumer		71,763			8.33			4,473		57,331			9.40			4,035
Lease financing		8,457			6.70			425		9,034			7.17			485
Foreign		2,126			18.10			289		1,725			19.19			248
Total loans (5)		209,453			6.66			10,448		177,749			7.57			10,079
Other		7,918			2.87			170		6,529			3.94			193
Total earning assets	$	319,077			6.23			14,839	$	263,948			7.15			14,083
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,512			.29			5	$	2,519			.60			11
Market rate and other savings		104,826			.68			533		92,545			.97			672
Savings certificates		21,257			2.60			413		24,785			3.32			615
Other time deposits		25,052			1.24			233		6,672			1.95			97
Deposits in foreign offices		6,083			1.15			52		5,204			1.65			64
Total interest-bearing deposits		159,730			1.03			1,236		131,725			1.48			1,459
Short-term borrowings		30,414			1.12			254		34,324			1.67			429
Long-term debt		52,141			2.61			1,020		40,843			3.40			1,041
Guaranteed preferred beneficial interests in Company’s subordinated debentures		3,210			3.69			88		2,745			4.29			88
Total interest-bearing liabilities		245,495			1.41			2,598		209,637			1.92			3,017
Portion of noninterest-bearing funding sources		73,582			—			—		54,311			—			—
Total funding sources	$	319,077			1.09			2,598	$	263,948			1.53			3,017
Net interest margin and net interest income on a taxable-equivalent basis(6)					5.14	%	$	12,241					5.62	%	$	11,066
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,551							$	13,696
Goodwill		9,803								9,731
Other		32,841								28,193
Total noninterest-earning assets	$	56,195							$	51,620
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	77,446							$	60,672
Other liabilities		20,739								16,418
Preferred stockholders’ equity		52								55
Common stockholders’ equity		31,540								28,786
Noninterest-bearing funding sources used to fund earning assets		(73,582	)							(54,311	)
Net noninterest-bearing funding sources	$	56,195							$	51,620
TOTAL ASSETS	$	375,272							$	315,568

(1)	The average prime rate of the Company was 4.16% and 4.75% for the nine months ended September 30, 2003 and 2002, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.23% and 1.88% 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 both periods presented.

-19-

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS
(income/expense in millions,	Community				Wholesale					Wells Fargo					Reconciliation						Consolidated
average balances in billions)	Banking				Banking					Financial					column (1)						Company
Quarter ended Sept. 30,	2003		2002		2003		2002			2003		2002			2003			2002			2003		2002
Net interest income	$	3,056	$	2,664	$	556	$	556		$	599	$	477		$	(3	)	$	(2	)	$	4,208	$	3,695
Provision for loan losses		221		180		54		60			159		155			—			—			434		395
Noninterest income		2,146		1,744		707		512			97		95			8			(6	)		2,958		2,345
Noninterest expense		3,428		2,574		629		564			343		268			—			1			4,400		3,407
Income (loss) before income tax expense (benefit)		1,553		1,654		580		444			194		149			5			(9	)		2,332		2,238
Income tax expense (benefit)		488		581		208		159			73		57			2			(3	)		771		794
Net income (loss)	$	1,065	$	1,073	$	372	$	285		$	121	$	92		$	3		$	(6	)	$	1,561	$	1,444
Average loans	$	149.8	$	117.1	$	49.0	$	49.1		$	21.2	$	15.6		$	—		$	—		$	220.0	$	181.8
Average assets		290.3		226.4		75.7		71.3			22.9		17.4			6.2			6.1			395.1		321.2
Average core deposits		191.8		166.1		23.8		18.2			.1		.1			—			—			215.7		184.4
Nine months ended Sept. 30,
Net interest income	$	8,849	$	7,936	$	1,667	$	1,691		$	1,672	$	1,370		$	(7	)	$	(8	)	$	12,181	$	10,989
Provision for loan losses		681		648		154		218			448		429			—			—			1,283		1,295
Noninterest income		5,942		5,013		2,015		1,728			283		273			9			10			8,249		7,024
Noninterest expense		9,289		7,579		1,885		1,747			973		810			2			3			12,149		10,139
Income (loss) before income tax expense and effect of change in accounting principle		4,821		4,722		1,643		1,454			534		404			—			(1	)		6,998		6,579
Income tax expense (benefit)		1,638		1,662		580		521			202		153			—			(1	)		2,420		2,335
Net income before effect of change in accounting principle		3,183		3,060		1,063		933			332		251			—			—			4,578		4,244
Cumulative effect of change in accounting principle		—		—		—		(98	)		—		(178	)		—			—			—		(276	)
Net income	$	3,183	$	3,060	$	1,063	$	835		$	332	$	73		$	—		$	—		$	4,578	$	3,968
Average loans	$	140.8	$	113.4	$	49.4	$	49.5		$	19.3	$	14.8		$	—		$	—		$	209.5	$	177.7
Average assets		271.9		222.5		76.1		70.3			21.1		16.6			6.2			6.2			375.3		315.6
Average core deposits		184.1		162.5		21.8		17.9			.1		.1			—			—			206.0		180.5

(1) The reconciling items for revenue (i.e., net interest income plus noninterest income) and net income are Treasury equity investment activities. The material item in the reconciliation column for average assets is unallocated goodwill held at the enterprise level.

-20-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA
(in millions, except per share amounts)	3Q03			2Q03			1Q03			4Q02			3Q02
For the Period
Net income	$	1,561		$	1,525		$	1,492		$	1,466		$	1,444
Diluted earnings per common share		.92			.90			.88			.86			.84
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.57	%		1.63	%		1.70	%		1.71	%		1.78	%
Net income applicable to common stock to average common stockholders’ equity (ROE)		18.86			19.60			19.77			19.34			19.38
Efficiency ratio (1)		61.4			58.9			57.9			58.1			56.4
Total revenue	$	7,166		$	6,755		$	6,509		$	6,484		$	6,040
Dividends declared per common share		.45			.30			.30			.28			.28
Average common shares outstanding		1,677.2			1,675.7			1,681.5			1,690.4			1,700.7
Diluted average common shares outstanding		1,693.9			1,690.6			1,694.1			1,704.0			1,717.8
Average loans	$	220,027		$	208,912		$	199,194		$	183,827		$	181,782
Average assets		395,057			375,149			355,171			340,258			321,217
Average core deposits		215,685			205,428			196,802			194,850			184,448
Net interest margin		5.03	%		5.12	%		5.31	%		5.44	%		5.52	%
At Period End
Securities available for sale	$	30,260		$	24,625		$	26,168		$	27,947		$	32,974
Loans		231,844			215,392			205,954			196,634			186,310
Allowance for loan losses		3,893			3,894			3,887			3,862			3,861
Goodwill		9,849			9,803			9,799			9,753			9,744
Assets		390,813			369,645			369,669			349,259			334,250
Core deposits		209,422			210,722			203,185			198,234			190,606
Common stockholders’ equity		32,316			32,223			30,723			30,297			30,016
Stockholders’ equity		32,372			32,275			30,771			30,358			30,074
Capital ratios
Common stockholders’ equity to assets		8.27	%		8.72	%		8.31	%		8.67	%		8.98	%
Stockholders’ equity to assets		8.28			8.73			8.32			8.69			9.00
Risk-based capital (2)
Tier 1 capital		8.09			7.93			7.34			7.60			7.84
Total capital		11.54			11.43			10.89			11.31			11.39
Tier 1 leverage (2)		6.44			6.59			6.43			6.58			6.83
Book value per common share	$	19.27		$	19.20		$	18.34		$	17.97		$	17.67
Staff (active, full-time equivalent)		139,200			135,500			131,600			127,500			125,700
Common Stock Price
High	$	53.71		$	52.80		$	49.13		$	51.60		$	54.84
Low		48.90			45.01			43.27			43.30			38.10
Period end		51.50			50.40			44.99			46.87			48.16

(1)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	The September 30, 2003 ratios are preliminary.

-21-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share amounts)	3Q03			2Q03			1Q03			4Q02			3Q02
INTEREST INCOME
Securities available for sale	$	470		$	435		$	453		$	531		$	582
Mortgages held for sale		906			864			814			828			591
Loans held for sale		57			67			67			58			52
Loans		3,548			3,482			3,410			3,347			3,400
Other interest income		64			80			62			62			74
Total interest income		5,045			4,928			4,806			4,826			4,699
INTEREST EXPENSE
Deposits		384			425			427			460			483
Short-term borrowings		72			87			95			107			124
Long-term debt		349			341			330			363			367
Guaranteed preferred beneficial interests in Company’s subordinated debentures		32			29			27			29			30
Total interest expense		837			882			879			959			1,004
NET INTEREST INCOME		4,208			4,046			3,927			3,867			3,695
Provision for loan losses		434			424			425			438			395
Net interest income after provision for loan losses		3,774			3,622			3,502			3,429			3,300
NONINTEREST INCOME
Service charges on deposit accounts		607			587			553			567			560
Trust and investment fees		504			470			460			480			462
Credit card fees		251			257			243			255			242
Other fees		422			373			368			375			372
Mortgage banking		773			543			561			515			426
Insurance		252			289			266			231			234
Net (losses) gains on debt securities available for sale		(23	)		20			18			91			121
Net gains (losses) from equity investments		58			(47	)		(98	)		(96	)		(152	)
Other		114			217			211			199			80
Total noninterest income		2,958			2,709			2,582			2,617			2,345
NONINTEREST EXPENSE
Salaries		1,185			1,155			1,141			1,091			1,110
Incentive compensation		621			503			447			541			446
Employee benefits		374			350			419			287			304
Equipment		298			305			269			317			232
Net occupancy		283			288			296			281			278
Net losses (gains) on dispositions of premises and equipment		4			10			(4	)		26			—
Other		1,635			1,369			1,202			1,227			1,037
Total noninterest expense		4,400			3,980			3,770			3,770			3,407
INCOME BEFORE INCOME TAX EXPENSE		2,332			2,351			2,314			2,276			2,238
Income tax expense		771			826			822			810			794
NET INCOME	$	1,561		$	1,525		$	1,492		$	1,466		$	1,444
NET INCOME APPLICABLE TO COMMON STOCK	$	1,560		$	1,524		$	1,491		$	1,465		$	1,443
EARNINGS PER COMMON SHARE
Earnings per common share	$	.93		$	.91		$	.89		$	.87		$	.85
Diluted earnings per common share	$	.92		$	.90		$	.88		$	.86		$	.84
DIVIDENDS DECLARED PER COMMON SHARE	$	.45		$	.30		$	.30		$	.28		$	.28
Average common shares outstanding		1,677.2			1,675.7			1,681.5			1,690.4			1,700.7
Diluted average common shares outstanding		1,693.9			1,690.6			1,694.1			1,704.0			1,717.8

-22-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET (QUARTER ENDED)
(in millions)	3Q03			2Q03			1Q03			4Q02			3Q02
ASSETS
Cash and due from banks	$	15,423		$	16,045		$	16,011		$	17,820		$	15,813
Federal funds sold and securities purchased under resale agreements		2,692			2,768			4,982			3,174			4,047
Securities available for sale		30,260			24,625			26,168			27,947			32,974
Mortgages held for sale		55,328			58,716			62,610			51,154			42,339
Loans held for sale		7,310			7,009			7,075			6,665			5,522
Loans		231,844			215,392			205,954			196,634			186,310
Allowance for loan losses		3,893			3,894			3,887			3,862			3,861
Net loans		227,951			211,498			202,067			192,772			182,449
Mortgage servicing rights, net		5,765			3,821			4,183			4,489			4,415
Premises and equipment, net		3,517			3,604			3,680			3,688			3,664
Goodwill		9,849			9,803			9,799			9,753			9,744
Other assets		32,718			31,756			33,094			31,797			33,283
Total assets	$	390,813		$	369,645		$	369,669		$	349,259		$	334,250
LIABILITIES
Noninterest-bearing deposits	$	77,175		$	80,943		$	75,330		$	74,094		$	69,382
Interest-bearing deposits		174,261			149,941			160,544			142,822			136,374
Total deposits		251,436			230,884			235,874			216,916			205,756
Short-term borrowings		25,589			23,883			33,196			33,446			30,370
Accrued expenses and other liabilities		18,839			20,705			19,961			18,334			19,341
Long-term debt		58,992			58,513			46,982			47,320			45,824
Guaranteed preferred beneficial interests in Company’s subordinated debentures		3,585			3,385			2,885			2,885			2,885
Total liabilities		358,441			337,370			338,898			318,901			304,176
STOCKHOLDERS’ EQUITY
Preferred stock		319			375			430			251			294
Unearned ESOP shares		(263	)		(323	)		(382	)		(190	)		(236	)
Total preferred stock		56			52			48			61			58
Common stock		2,894			2,894			2,894			2,894			2,894
Additional paid-in capital		9,532			9,536			9,514			9,498			9,499
Retained earnings		22,103			21,320			20,349			19,394			18,441
Cumulative other comprehensive income		572			1,185			913			976			1,070
Treasury stock		(2,785	)		(2,712	)		(2,947	)		(2,465	)		(1,888	)
Total stockholders’ equity		32,372			32,275			30,771			30,358			30,074
Total liabilities and stockholders’ equity	$	390,813		$	369,645		$	369,669		$	349,259		$	334,250

-23-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS (QUARTER ENDED)
(in millions)	3Q03		2Q03		1Q03		4Q02		3Q02
Commercial	$	47,720	$	47,577	$	48,147	$	47,292	$	46,827
Real estate 1-4 family first mortgage		59,680		48,239		44,492		40,976		33,773
Other real estate mortgage		25,723		25,703		25,629		25,312		25,233
Real estate construction		7,777		7,853		8,032		7,804		7,887
Consumer:
Real estate 1-4 family junior lien mortgage		40,681		36,695		33,175		31,290		30,193
Credit card		7,836		7,626		7,359		7,455		7,033
Other revolving credit and installment		31,919		30,943		28,361		26,353		24,912
Total consumer		80,436		75,264		68,895		65,098		62,138
Lease financing		8,185		8,514		8,698		8,241		8,593
Foreign		2,323		2,242		2,061		1,911		1,859
Total loans (net of unearned income)	$	231,844	$	215,392	$	205,954	$	196,634	$	186,310

-24-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
(in millions)	3Q03			2Q03			1Q03			4Q02			3Q02
Balance, beginning of quarter	$	3,894		$	3,887		$	3,862		$	3,861		$	3,883
Allowances related to business combinations/other		(1	)		7			25			1			(2	)
Provision for loan losses		434			424			425			438			395
Loan charge-offs:
Commercial		(136	)		(147	)		(153	)		(183	)		(159	)
Real estate 1-4 family first mortgage		(8	)		(6	)		(9	)		(7	)		(3	)
Other real estate mortgage		(12	)		(9	)		(2	)		(10	)		(2	)
Real estate construction		(2	)		(3	)		(3	)		(8	)		(9	)
Consumer:
Real estate 1-4 family junior lien mortgage		(19	)		(22	)		(22	)		(23	)		(14	)
Credit card		(109	)		(116	)		(112	)		(100	)		(99	)
Other revolving credit and installment		(206	)		(198	)		(198	)		(174	)		(212	)
Total consumer		(334	)		(336	)		(332	)		(297	)		(325	)
Lease financing		(26	)		(24	)		(26	)		(26	)		(21	)
Foreign		(29	)		(25	)		(20	)		(21	)		(19	)
Total loan charge-offs		(547	)		(550	)		(545	)		(552	)		(538	)
Loan recoveries:
Commercial		31			37			36			42			36
Real estate 1-4 family first mortgage		1			1			—			—			1
Other real estate mortgage		2			3			2			3			3
Real estate construction		2			4			5			—			10
Consumer:
Real estate 1-4 family junior lien mortgage		7			6			5			3			4
Credit card		13			13			12			12			12
Other revolving credit and installment		46			50			51			45			49
Total consumer		66			69			68			60			65
Lease financing		6			7			6			6			4
Foreign		5			5			3			3			4
Total loan recoveries		113			126			120			114			123
Net loan charge-offs		(434	)		(424	)		(425	)		(438	)		(415	)
Balance, end of quarter	$	3,893		$	3,894		$	3,887		$	3,862		$	3,861
Net loan charge-offs (annualized) as a percentage of average total loans		.78	%		.81	%		.87	%		.95	%		.91	%
Allowance as a percentage of total loans		1.68	%		1.81	%		1.89	%		1.96	%		2.07	%
Allowance as a percentage of nonaccrual loans		257	%		249	%		249	%		259	%		249	%
Allowance as a percentage of nonaccrual loans and other assets		226	%		221	%		220	%		228	%		222	%

-25-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS (QUARTER ENDED)
(in millions)	3Q03			2Q03			1Q03			4Q02			3Q02
Nonaccrual loans:
Commercial	$	713		$	787		$	836		$	796		$	840
Real estate 1-4 family first mortgage		203			206			216			214			215
Other real estate mortgage		267			263			222			192			198
Real estate construction		48			61			72			93			112
Consumer:
Real estate 1-4 family junior lien mortgage		134			105			83			65			39
Other revolving credit and installment		78			49			44			48			55
Total consumer		212			154			127			113			94
Lease financing		71			85			85			79			85
Foreign		3			5			5			5			5
Total nonaccrual loans		1,517			1,561			1,563			1,492			1,549
As a percentage of total loans		.65	%		.72	%		.76	%		.76	%		.83	%
Foreclosed assets		200			195			200			201			186
Real estate investments		6			5			5			4			2
Total nonaccrual loans and other assets	$	1,723		$	1,761		$	1,768		$	1,697		$	1,737
As a percentage of total loans		.74	%		.82	%		.86	%		.86	%		.93	%

-26-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
(in millions)	3Q03			2Q03			1Q03			4Q02			3Q02
Service charges on deposit accounts	$	607		$	587		$	553		$	567		$	560
Trust and investment fees:
Trust, investment and IRA fees		348			322			324			339			327
Commissions and all other fees		156			148			136			141			135
Total trust and investment fees		504			470			460			480			462
Credit card fees		251			257			243			255			242
Other fees:
Cash network fees		48			46			42			43			47
Charges and fees on loans		199			186			180			184			160
All other		175			141			146			148			165
Total other fees		422			373			368			375			372
Mortgage banking:
Origination and other closing fees		393			334			276			353			271
Servicing fees, net of amortization and provision for impairment		(82	)		(741	)		(443	)		(457	)		(158	)
Net gains on mortgage loan origination/sales activities		319			831			637			520			226
All other		143			119			91			99			87
Total mortgage banking		773			543			561			515			426
Insurance		252			289			266			231			234
Net (losses) gains on debt securities available for sale		(23	)		20			18			91			121
Net gains (losses) from equity investments		58			(47	)		(98	)		(96	)		(152	)
Net gains (losses) on sales of loans		19			5			(1	)		4			7
Net gains (losses) on dispositions of operations		—			—			27			16			(9	)
All other		95			212			185			179			82
Total	$	2,958		$	2,709		$	2,582		$	2,617		$	2,345

FIVE QUARTER NONINTEREST EXPENSE
(in millions)	3Q03		2Q03		1Q03			4Q02		3Q02
Salaries	$	1,185	$	1,155	$	1,141		$	1,091	$	1,110
Incentive compensation		621		503		447			541		446
Employee benefits		374		350		419			287		304
Equipment		298		305		269			317		232
Net occupancy		283		288		296			281		278
Net losses (gains) on dispositions of premises and equipment		4		10		(4	)		26		—
Outside professional services		122		111		112			136		108
Contract services		270		250		155			193		129
Outside data processing		105		103		98			88		91
Telecommunications		92		86		78			84		94
Travel and entertainment		98		92		85			94		85
Advertising and promotion		98		96		81			97		85
Postage		94		87		84			67		65
Stationery and supplies		62		57		54			62		51
Insurance		48		69		50			28		29
Operating losses		29		64		57			48		40
Security		41		42		42			39		41
Core deposit intangibles		35		36		37			38		38
All other		541		276		269			253		181
Total	$	4,400	$	3,980	$	3,770		$	3,770	$	3,407

-27-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES (TAXABLE-EQUIVALENT BASIS)
(in millions)	3Q03			2Q03			1Q03			4Q02			3Q02
EARNING ASSETS
Federal funds sold and securities purchased under resale agreements	$	2,514		$	6,405		$	3,101		$	2,762		$	2,641
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,283			1,288			1,294			1,525			1,719
Securities of U.S. states and political subdivisions		2,442			2,063			2,040			2,075			2,123
Mortgage backed securities:
Federal agencies		18,538			15,696			17,709			21,909			26,037
Private collateralized mortgage obligations		1,972			1,994			2,025			2,002			2,119
Total mortgage-backed securities		20,510			17,690			19,734			23,911			28,156
Other debt securities (1)		3,540			3,167			3,013			3,056			2,883
Total debt securities available for sale (1)		27,775			24,208			26,081			30,567			34,881
Mortgages held for sale		69,786			65,493			58,422			57,134			38,384
Loans held for sale		7,124			7,063			7,002			5,808			5,302
Loans:
Commercial		46,947			47,484			47,007			46,467			46,323
Real estate 1-4 family first mortgage		51,936			45,776			41,713			31,266			31,366
Other real estate mortgage		25,635			25,661			25,385			25,268			25,389
Real estate construction		7,775			7,983			7,908			7,894			7,843
Consumer:
Real estate 1-4 family junior lien mortgage		38,393			34,857			32,076			30,630			29,192
Credit card		7,683			7,456			7,400			7,150			6,898
Other revolving credit and installment		31,053			28,876			27,383			24,825			24,251
Total consumer		77,129			71,189			66,859			62,605			60,341
Lease financing		8,343			8,658			8,371			8,410			8,678
Foreign		2,262			2,161			1,951			1,917			1,842
Total loans (2)		220,027			208,912			199,194			183,827			181,782
Other		8,905			7,717			7,115			6,379			6,814
Total earning assets	$	336,131		$	319,798		$	300,915		$	286,477		$	269,804
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,592		$	2,536		$	2,406		$	2,418		$	2,464
Market rate and other savings		108,969			104,603			100,816			97,473			94,768
Savings certificates		20,429			21,355			22,004			22,774			23,813
Other time deposits		27,633			26,912			20,531			12,694			9,068
Deposits in foreign offices		5,643			6,278			6,337			4,438			3,949
Total interest-bearing deposits		165,266			161,684			152,094			139,797			134,062
Short-term borrowings		29,572			30,218			31,473			30,175			29,558
Long-term debt		57,960			51,677			46,662			46,060			43,568
Guaranteed preferred beneficial interests in Company’s subordinated debentures		3,525			3,215			2,885			2,885			2,885
Total interest-bearing liabilities		256,323			246,794			233,114			218,917			210,073
Portion of noninterest-bearing funding sources		79,808			73,004			67,801			67,560			59,731
Total funding sources	$	336,131		$	319,798		$	300,915		$	286,477		$	269,804
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,642		$	13,320		$	13,691		$	14,189		$	13,128
Goodwill		9,817			9,802			9,789			9,756			9,741
Other		35,467			32,229			30,776			29,836			28,544
Total noninterest-earning assets	$	58,926		$	55,351		$	54,256		$	53,781		$	51,413
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	83,695		$	76,934		$	71,576		$	72,185		$	63,403
Other liabilities		22,163			20,192			19,834			19,045			18,137
Preferred stockholders’ equity		50			47			60			57			54
Common stockholders’ equity		32,826			31,182			30,587			30,054			29,550
Noninterest-bearing funding sources used to fund earning assets		(79,808	)		(73,004	)		(67,801	)		(67,560	)		(59,731	)
Net noninterest-bearing funding sources	$	58,926		$	55,351		$	54,256		$	53,781		$	51,413
TOTAL ASSETS	$	395,057		$	375,149		$	355,171		$	340,258		$	321,217

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

-28-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS
(income/expense in millions, average balances in billions)	3Q03			2Q03			1Q03			4Q02			3Q02
COMMUNITY BANKING
Net interest income	$	3,056		$	2,938		$	2,855		$	2,809		$	2,664
Provision for loan losses		221			230			231			266			180
Noninterest income		2,146			1,938			1,858			1,947			1,744
Noninterest expense		3,428			3,022			2,839			2,861			2,574
Income before income tax expense		1,553			1,624			1,643			1,629			1,654
Income tax expense		488			565			585			573			581
Net income	$	1,065		$	1,059		$	1,058		$	1,056		$	1,073
Average loans	$	149.8		$	139.8		$	132.4		$	118.4		$	117.1
Average assets		290.3			269.5			255.5			243.4			226.4
Average core deposits		191.8			184.1			176.3			174.8			166.1
WHOLESALE BANKING
Net interest income	$	556		$	560		$	551		$	565		$	556
Provision for loan losses		54			46			53			60			60
Noninterest income		707			656			652			588			512
Noninterest expense		629			636			620			620			564
Income before income tax expense		580			534			530			473			444
Income tax expense		208			189			183			170			159
Net income	$	372		$	345		$	347		$	303		$	285
Average loans	$	49.0		$	49.8		$	49.3		$	49.1		$	49.1
Average assets		75.7			78.4			74.1			72.4			71.3
Average core deposits		23.8			21.2			20.4			19.9			18.2
WELLS FARGO FINANCIAL
Net interest income	$	599		$	550		$	523		$	496		$	477
Provision for loan losses		159			148			141			112			155
Noninterest income		97			95			91			80			95
Noninterest expense		343			321			308			288			268
Income before income tax expense		194			176			165			176			149
Income tax expense		73			66			63			67			57
Net income	$	121		$	110		$	102		$	109		$	92
Average loans	$	21.2		$	19.3		$	17.5		$	16.3		$	15.6
Average assets		22.9			21.1			19.4			18.3			17.4
Average core deposits		.1			.1			.1			.1			.1
RECONCILIATION (1)
Net interest income	$	(3	)	$	(2	)	$	(2	)	$	(3	)	$	(2	)
Provision for loan losses		—			—			—			—			—
Noninterest income		8			20			(19	)		2			(6	)
Noninterest expense		—			1			3			1			1
Income (loss) before income tax expense (benefit)		5			17			(24	)		(2	)		(9	)
Income tax expense (benefit)		2			6			(9	)		—			(3	)
Net income (loss)	$	3		$	11		$	(15	)	$	(2	)	$	(6	)
Average loans	$	—		$	—		$	—		$	—		$	—
Average assets		6.2			6.1			6.2			6.2			6.1
Average core deposits		—			—			—			—			—
CONSOLIDATED COMPANY
Net interest income	$	4,208		$	4,046		$	3,927		$	3,867		$	3,695
Provision for loan losses		434			424			425			438			395
Noninterest income		2,958			2,709			2,582			2,617			2,345
Noninterest expense		4,400			3,980			3,770			3,770			3,407
Income before income tax expense		2,332			2,351			2,314			2,276			2,238
Income tax expense		771			826			822			810			794
Net income	$	1,561		$	1,525		$	1,492		$	1,466		$	1,444
Average loans	$	220.0		$	208.9		$	199.2		$	183.8		$	181.8
Average assets		395.1			375.1			355.2			340.3			321.2
Average core deposits		215.7			205.4			196.8			194.8			184.4

(1) The reconciling items for revenue (i.e., net interest income plus noninterest income) and net income are Treasury equity investment activities. The material item in the reconciliation section for average assets is unallocated goodwill held at the enterprise level.

-29-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING(1)
(in millions)	3Q03			2Q03			1Q03			4Q02			3Q02
Mortgage Servicing Rights:
Balance, beginning of quarter	$	6,375		$	6,652		$	6,677		$	6,174		$	7,865
Originations		1,377			892			603			793			492
Purchases		874			462			394			490			268
Amortization		(572	)		(926	)		(803	)		(671	)		(534	)
Write-down		(492	)		(535	)		(311	)		(184	)		(887	)
Other (includes changes in mortgage servicing rights due to hedging)		27			(170	)		92			75			(1,030	)
Balance before valuation allowance, end of quarter		7,589			6,375			6,652			6,677			6,174
Less: Valuation allowance		1,824			2,554			2,469			2,188			1,759
Balance, end of quarter	$	5,765		$	3,821		$	4,183		$	4,489		$	4,415
Mortgage Servicing Rights Valuation Allowance:
Balance, beginning of quarter	$	2,554		$	2,469		$	2,188		$	1,759		$	1,909
Provision for mortgage servicing rights in excess of fair value		—			620			592			613			737
Reversal of provision for mortgage servicing rights in excess of fair value		(238	)		—			—			—			—
Write-down of mortgage servicing rights		(492	)		(535	)		(311	)		(184	)		(887	)
Balance, end of quarter	$	1,824		$	2,554		$	2,469		$	2,188		$	1,759
Ratio of mortgage servicing rights to related mortgage loans serviced for others		1.03	%		.73	%		.84	%		.92	%		.89	%

(in billions)	3Q03			2Q03			1Q03			4Q02			3Q02
Managed Servicing Portfolio:
Loans serviced for others	$	560		$	522		$	499		$	487		$	495
Owned loans serviced (Portfolio & Warehouse)		114			106			106			91			75
Total owned servicing		674			628			605			578			570
Sub-servicing		18			23			29			36			45
Total	$	692		$	651		$	634		$	614		$	615
Weighted-average note rate (owned servicing only)		5.98	%		6.23	%		6.49	%		6.67	%		6.89	%

(1) Consists of residential and commercial mortgage servicing from all Wells Fargo channels.

-30-

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION
(in billions)	3Q03			2Q03			1Q03			4Q02			3Q02
Application Data:(1)
Residential real estate first mortgage quarterly applications	$	135		$	204		$	157		$	121		$	157
Percentage of refinances		59	%		77	%		77	%		71	%		74	%
Residential real estate first mortgage unclosed pipeline, at quarter end	$	62		$	120		$	89		$	69		$	89

(1) Consists of Wells Fargo Home Mortgage application data only.

(in billions)	3Q03		2Q03		1Q03		4Q02		3Q02
Residential Real Estate Originations:(1)
Quarter:
Residential real estate first mortgage loans:
Retail	$	80	$	73	$	51	$	54	$	37
Correspondent/Wholesale		71		54		46		52		46
Home equity loans and lines		8		7		5		5		5
Wells Fargo Financial		2		1		1		1		1
Total	$	161	$	135	$	103	$	112	$	89
Year-to-date	$	399	$	238	$	103	$	333	$	221

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