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

Exhibit 99

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

Tuesday, January 20, 2004
WELLS FARGO REPORTS RECORD
QUARTERLY AND ANNUAL EARNINGS PER SHARE AND REVENUE

Year 2003 Highlights:

• Record diluted earnings per share of $3.65, up 10 percent from prior year’s $3.32

• Record net income of $6.2 billion, up 9 percent from prior year’s $5.7 billion

• Return on equity of 19.4 percent

• Record revenue of $28.4 billion, up 12 percent from prior year

Fourth Quarter 2003 Highlights:

• Record diluted earnings per share of $.95, up 10 percent from prior year’s $.86

• Record revenue up 12 percent from prior year

• Strong balance sheet growth

o Average loans up 31 percent from prior year

o Average core deposits up 8 percent from prior year

• Improved asset quality

o Nonperforming assets declined $57 million from prior quarter, and improved to .66 percent of total loans from .88 percent in prior year

o Net charge-offs as a percentage of average total loans declined to .78 percent from .94 percent in prior year

	Fourth Quarter									Full Year
							%									%
	2003			2002			Change			2003			2002			Change
Earnings
Diluted earnings per share	$	.95		$	.86			10	%	$	3.65		$	3.32			10	%
Net Income (in millions)		1,624			1,472			10			6,202			5,710			9
Asset Quality
Net charge-offs (in millions)		465			424			10			1,719			1,675			3
Nonperforming assets (annualized) as % of total loans		.66	%		.88	%		(25	)		.66	%		.88	%		(25	)
Nonperforming assets (in millions)	$	1,662		$	1,691			(2	)	$	1,662		$	1,691			(2	)
Other
Revenue (in millions)		7,445			6,665			12			28,389			25,249			12
Average loans (in billions)		236.0			179.5			31			213.1			174.5			22
Average core deposits (in billions)		210.0			194.8			8			207.0			184.1			12

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 $.95 for fourth quarter 2003, compared with $.86 in fourth quarter 2002, up 10 percent. Net income was a record $1.6 billion, up 10 percent from $1.5 billion in fourth quarter 2002. For the full year 2003, net income was a record $6.2 billion, or $3.65 per share, compared with $5.7 billion, or $3.32 per share, for the full year 2002, an increase in earnings per share of 10 percent.

            “This was another terrific quarter and another terrific year for our company as our team achieved record revenue and record profits for the tenth consecutive quarter,” said Chairman and CEO Dick Kovacevich. “The key to the bottom line – profit – continues to be the top line – revenue. For the quarter and full year, our revenue increased an impressive 12 percent. But this isn’t the first time. Over the past ten years both our revenue and earnings per share have grown at an annual compound rate of 13 percent. Our financial performance, across more than 80 businesses, continues to be among the very best in our industry or any industry. Once again our 143,000 talented team members and our business model – diversified across all of financial services and centered on satisfying all the financial needs of our 23 million diverse customers – demonstrated that they can deliver outstanding results regardless of the economic environment. The total return of our stock for 2003 was 29 percent. During the quarter, our stock price hit a record closing high and for the first time in history our market capitalization exceeded $100 billion, a level achieved by only about 20 other U.S. companies in all industries. We begin our company’s 152^nd year with optimism. We believe that all the pieces are in place for a national economic recovery that will create jobs and fuel continued economic growth and prosperity.”

Financial Performance

           Diluted earnings per share were $.95 for fourth quarter 2003, up 10 percent from $.86 in fourth quarter 2002, the tenth consecutive quarter of double-digit growth in EPS. Fourth quarter results included $143 million of net realized gains from equity investments, including the Company’s first meaningful gains on private equity investments in three years. The Company took a number of actions which reduced fourth quarter 2003 pre-tax earnings by $129 million, or $.05 per share after tax. “We took advantage of financial market opportunities to reposition the bond portfolio for higher yield, sell a sub-prime credit card portfolio and donate appreciated securities to the Wells Fargo Foundation,” said Chief Financial Officer Howard Atkins. “As part of our effort to streamline operations, we also incurred integration, consolidation and severance costs in the quarter, largely to adjust the mortgage business for lower volumes, and we consolidated Company-owned properties to reduce future occupancy costs. These fourth quarter actions reduced pre-tax revenues by $14 million and increased pre-tax noninterest and provision expense by $115 million for the quarter. Also during the quarter, the Company changed the way it accounts for income on interest rate lock commitments on mortgage loans held for sale to recognize its business margin at time of sale instead of at funding. This resulted in a one-time reduction in revenue of $77 million.”

Revenue

           Revenue of $7.4 billion grew $.8 billion, or 12 percent, from fourth quarter 2002, and 6 percent (annualized) on a linked-quarter basis. Excluding residential mortgage banking, the combined revenue of our other businesses grew 13 percent from fourth quarter 2002 and 32 percent (annualized) on a linked-quarter basis.

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Loans

           Average loans of $236 billion for fourth quarter 2003 increased $56.5 billion, or 31 percent, from fourth quarter 2002, and $19.8 billion, or 37 percent (annualized), on a linked-quarter basis. “The double-digit growth in loans was generated by continued strong consumer demand for credit including home equity, residential first mortgage products, credit cards, revolving credit and installment loans,” said Atkins. On a combined basis, average consumer loans and residential mortgage loans increased $53 billion, or 56 percent, from fourth quarter 2002 and $17.5 billion, or 54 percent (annualized), on a linked-quarter basis.

            Average commercial, other real estate mortgage and real estate construction loans increased $2.2 billion from third quarter 2003. Approximately $1.1 billion of this increase in average loans was attributable to the acquisition of Pacific Northwest Bancorp. “Although it’s too early to call a rebound in commercial loan demand, we’re encouraged to see this modest growth in commercial loans,” said Atkins. “The ‘same-store’ increase in commercial loans reflected continued strong growth in asset-based lending and some modest increase in lending activity at our commercial real estate, middle market and small business direct businesses.”

Deposits

           Average core deposits grew $15 billion, or 8 percent, from fourth quarter 2002, and declined $6 billion on a linked-quarter basis due to a $10 billion decline in mortgage escrow deposits attributable to lower mortgage refinance activity. Excluding mortgage escrow deposits, average core deposits grew $20 billion, or 11 percent, from fourth quarter 2002 and $6 billion, or 11 percent (annualized), on a linked-quarter basis, driven primarily by a 13 percent increase in consumer and business noninterest-bearing checking account balances and a 15 percent increase in interest-bearing checking and market rate account balances from fourth quarter 2002. Approximately $1.2 billion of the growth in average core deposits was attributable to Pacific Northwest Bancorp. “We continued to see good growth in consumer and commercial deposits from new customer account generation,” said Atkins.

Net Interest Income

           Net interest income grew $259 million, or 7 percent, from fourth quarter 2002, due to a $45 billion, or 16 percent, increase in average earning assets and an 8 percent increase in average core deposits, offset by a 44 basis point decline in the net interest margin. The $45 billion increase in average earning assets was driven by a $56 billion growth in average loans, primarily consumer, offset by a $16 billion decline in mortgages held for sale balances due to a decline in residential mortgage refinance activity.

            On a linked-quarter basis, net interest income declined $98 million due primarily to a $29 billion reduction in average mortgages held for sale, partially offset by $20 billion growth in average loans. The net interest margin was 4.97 percent for fourth quarter 2003, compared with 5.01 percent in third quarter 2003.

Noninterest Income

           Noninterest income in fourth quarter 2003 increased $521 million, or 18 percent, from a year ago and 26 percent (annualized) on a linked-quarter basis. “The growth in fee income was once again very broad-based,” said Atkins. “Deposit service fees, other fees and commissions, insurance income, and trust and investment fees increased due to customer growth and product cross-sell. The strength in the equity and debt markets drove gains in private and public equity investments, trading, foreign exchange and other capital markets

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activities. Residential mortgage fee income increased $121 million from fourth quarter 2002, primarily reflecting growth in mortgage servicing fees due to an increase in the size and average life of the servicing portfolio. On a linked-quarter basis, mortgage banking revenue declined $137 million, largely reflecting the $77 million reduction in revenue due to the accounting change. Lower revenues from a decline in mortgage refinancing activity were partially offset by an improvement in servicing revenue.

Noninterest Expense

           Noninterest expense was $4.5 billion in fourth quarter 2003, up $546 million, or 14 percent, from a year ago. The actions taken during the quarter added $86 million to noninterest expense. “We continue to manage expenses very tightly to ensure savings opportunities are realized and that expenses are aligned with revenue opportunities in each of our businesses,” said Atkins. “In line with the decline in mortgage originations, residential mortgage noninterest expenses were $181 million less on a linked-quarter basis due to a decline in commissions paid to loan originators and a reduction in the use of temporary help. The strategic actions taken this quarter will help improve our operating efficiency by reducing future growth in labor, equipment and occupancy costs.”

Credit Quality

           “Credit quality continued to improve in the fourth quarter with a $57 million reduction in nonperforming assets and stable loss rates,” said Chief Credit Officer Dave Munio. Nonperforming assets totaled $1.66 billion, or .66 percent of total loans, at December 31, 2003, down from $1.72 billion (.75 percent) from the prior quarter and $1.69 billion (.88 percent) at year-end 2002. Net credit losses were $465 million, including a $30 million loss on sale of a sub-prime credit card portfolio. Fourth quarter credit losses were .78 percent of average loans (annualized), compared with $424 million (.78%) in third quarter 2003 and $424 million (.94 percent) in fourth quarter 2002. Full year 2003 net losses were $1.72 billion, or .81 percent of average loans, compared with $1.68 billion (.96 percent) in 2002 and $1.73 billion (1.10 percent) in 2001. “Dollar losses have remained relatively consistent the last three years due to sound underwriting, well-managed collections, and a strong credit culture. As our retail portfolios continue to grow and season, we may see some increase in our dollar losses which we believe would be consistent with our credit profile,” said Munio.

            The fourth quarter provision expense of $465 million was equal to quarterly net losses. The full year 2003 provision expense of $1.72 billion also equaled total full year losses. The allowance of $3.89 billion continued to provide over two times coverage of nonperforming assets and annualized loan losses.

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.

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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

	Fourth Quarter							Full Year
					%							%
(in millions)	2003		2002		Change			2003		2002		Change
Total revenue	$	5,408	$	4,937		10	%	$	20,713	$	18,457		12	%
Provision for loan losses		236		254		(7)			892		865		3
Noninterest expense		3,385		3,045		11			13,214		11,241		18
Net income		1,182		1,062		11			4,364		4,116		6
Average loans (in billions)		162.7		114.1		43			143.2		109.9		30
Average assets (in billions)		278.5		243.3		14			273.5		227.7		20

• Net income up 6 percent in 2003

• Core product sales of 2.85 million, up 15 percent in 2003

• Consumer checking attrition down 12 percent from 2001

• Net consumer checking account growth of 5 percent in 2003

• Average loan balances up 30 percent in 2003

• Industry record mortgage originations of $470 billion in 2003

• Pacific Northwest Bancorp acquisition closed in fourth quarter 2003

• Internet:

o 4.8 million active online consumers, up 35 percent from a year ago

o 1.5 million bill pay customers at year end, up 35 percent from a year ago

o 415,000 active online small business customers, up 40 percent from a year ago

o Nearly $12 billion in internet merchant payments in 2003, up 100 percent from a year ago

o Wells Fargo named “Websmart 50” Company,Business Week,November 2003

            “Our dedicated team continued to achieve strong results in the fourth quarter,” said John Stumpf, Group EVP, Community Banking. “Core sales were 2.85 million, up 15 percent from the same period last year and sales per platform banker rose 13 percent compared with the same period last year. Our emphasis on improved customer service is working: our consumer checking attrition was down 12 percent from levels of two years ago and net growth in consumer checking accounts for 2003 was a strong 5 percent.”

            “We’ve seen the crest of this refinancing wave as residential mortgage originations in the quarter of $71 billion were down from $161 billion in the third quarter,” said Mark Oman, EVP, Home and Consumer Finance Group. “The purchase mortgage market continued to be strong. While originations for the quarter were down from the prior year, full year originations of $470 billion eclipsed the industry record of $333 billion we set last year. Our team members have done an outstanding job of managing through unprecedented interest rate volatility while continuing to provide outstanding customer service and growing the business. To meet the home financing needs of our customers we have originated over one trillion dollars in residential real estate loans over the last three years.

            The cyclical nature of the origination business is not new to us, and we’ve structured the business model with a dynamic cost structure through use of a commissioned sales force

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and use of temporary and contract labor to meet the peaks in demand. The servicing business also provides a natural hedge because its profitability increases with the associated reduction in prepayments.”

            The owned servicing portfolio grew 22 percent in 2003 to $710 billion. The weighted-average note rate for the portfolio declined to a record low 5.90 percent at year-end, down from 6.67 percent at December 31, 2002. The carrying value of this portfolio was $6.9 billion (1.15 percent of loans serviced for others) compared with $4.5 billion (.92 percent) at December 31, 2002.

            Community Banking reported net income of $1,182 million in fourth quarter 2003, compared with $1,062 million for the same period in 2002, up 11 percent. Full year 2003 earnings were $4,364 million, compared with $4,116 million in 2002, up 6 percent. Community Banking revenue was up 10 percent from the fourth quarter of last year. Net interest income increased by $137 million, or 5 percent, compared with fourth quarter 2002, due primarily to growth in consumer loans, mortgages held for sale and deposits. Noninterest income was up $334 million, or 15 percent, in fourth quarter 2003 compared with 2002. For the year, Community Banking revenue increased 12 percent. Noninterest expense increased by $340 million in fourth quarter 2003, or 11 percent, compared with the same period of 2002, due primarily to increased mortgage originations and other actions taken in the third and fourth quarters. The provision for loan losses decreased by $18 million in fourth quarter 2003, compared with fourth quarter 2002.

            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, capital markets and real estate banking products and services.

Selected Financial Information

	Fourth Quarter							Full Year
					%							%
(in millions)	2003		2002		Change			2003		2002		Change
Total revenue	$	1,311	$	1,153		14	%	$	4,994	$	4,573		9	%
Provision for loan losses		23		60		(62	)		177		278		(36	)
Noninterest expense		694		620		12			2,579		2,367		9
Net income		382		303		26			1,446		1,236		17
Average loans (in billions)		49.8		49.1		1			49.5		49.4		—
Average assets (in billions)		74.8		72.4		3			75.8		70.8		7

• Net income up 17 percent in 2003

• Noninterest income up 19 percent in 2003, reflecting cross-sell efforts

• Improvement in credit quality

o Nonperforming assets down $144 million from $751 million in prior year

o Net charge-offs down $101 million, or 36 percent from prior year

            “We are very pleased to reach record earning levels once again,” said Dave Hoyt, Group EVP, Wholesale Banking. “For the year, net income grew 17 percent despite a challenging economic environment and relatively flat loan growth. Over the five years since the Wells Fargo/Norwest merger, we have delivered a double-digit compound annual growth rate in net income, a testament to our team members’ continued focus on customer acquisition, cross sell

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and customer service. In the fourth quarter, areas of strength included growth in noninterest income and the performance of our asset-based lending group.

            As a leader in delivering electronic solutions, we continue to focus on ways to make it easier for our customers to do business with Wells Fargo. On November 25, Wells Fargo processed its one billionth Automated Clearing House (ACH) electronic payment transaction for 2003. This is the first time we've exceeded one billion ACH transactions in a single year. The number of active customers on our CEO® internet portal increased 31 percent for the year and revenue from Wholesale customers using the internet increased 53 percent. In 2003, over $5.9 trillion in payments were processed on the CEO portal.''

            Wholesale Banking earnings were $382 million for fourth quarter 2003, up 26 percent from fourth quarter 2002 and up 17 percent compared with a year ago. Fourth quarter revenue of $1.3 billion was up 14 percent from a year ago and up 4 percent from third quarter 2003. Growth in revenue on both a year-over-year and linked-quarter basis was attributable to higher income from investment-related businesses. Fourth quarter expenses were up 12 percent from a year ago and up 10 percent from third quarter 2003. The provision for loan losses in the fourth quarter declined $37 million from a year ago and declined $31 million from third quarter 2003. Nonperforming assets declined $144 million, from $751 million at December 31, 2002 to $607 million at December 31, 2003 and decreased $85 million, from $692 million at September 30, 2003.

            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

	Fourth Quarter							Full Year
					%							%
(in millions)	2003		2002		Change			2003		2002		Change
Total revenue	$	734	$	576		27	%	$	2,689	$	2,220		21	%
Provision for loan losses		176		112		57			623		541		15
Noninterest expense		370		288		28			1,343		1,099		22
Net income		119		109		9			451		360		25
Average loans (in billions)		23.5		16.3		44			20.4		15.2		34
Average assets (in billions)		25.3		18.3		38			22.2		17.0		31

• Net income up 25 percent in 2003

• Loans increased $8 billion, or 47 percent

o Real estate secured receivables up $3.5 billion

o Auto receivables up $2.6 billion

• U.S. Consumer business sales force up 1,400 in 2003

• Sound credit quality

            “Fueled by growth in the loan portfolio, Wells Fargo Financial had record earnings of $451 million in 2003,” said Mark Oman, EVP Home and Consumer Finance Group. “In 2003, we saw strong loan growth in real estate secured receivables up $3.5 billion, or 87 percent, due in part to an increase of 1,400 sales staff in the U.S. consumer business. Auto receivables increased $2.6 billion, or 57 percent. Credit quality remained solid, with losses within predicted ranges amid accelerated growth.”

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*     *     *     *     *

Certain prior period amounts presented in this release and in the corresponding tables have been updated to reflect the Company’s implementation of guidance set forth in Emerging Issues Task Force Topic D-107 and to conform with the current financial statement presentation, as more fully described in the Company’s reports on Form 10-K/A and 10-Q/A filed January 16, 2004.

Recorded Message

           A recorded message reviewing Wells Fargo’s results is available through January 23, 2004. Dial 800-642-1687 (domestic) or 706-645-9291 (international). Access code 4765614. The call is also available at www.wellsfargo.com/ir and www.vcall.com.

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

            This news release contains forward-looking statements about the Company. Broadly speaking, forward-looking statements consist of descriptions of plans or objectives for future operations, products or services, forecasts of revenues, earnings or other measures of economic performance, and assumptions underlying or relating to any of the foregoing. Because forward-looking statements discuss future events or conditions and not historical facts, they often include words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” or similar expressions. Examples of forward-looking statements in this release include statements about the expected benefits of actions taken in the quarter 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 Reports on Form 10-Q and Form 10-Q/A for the quarter ended September 30, 2003 and Annual Reports on Form 10-K and Form 10-K/A for the year ended December 31, 2002. See, for example, Part I, Item 2 of the Form 10-Q/A and Part I, Items 1 and 7 of the Form 10-K/A.

            Other factors described in the Forms 10-Q, 10-Q/A, 10-K and 10-K/A include · business and economic conditions · fiscal and monetary policies · legislation and regulation · disintermediation · competition generally and in light of the Gramm-Leach-Bliley Act · potential dividend restrictions · market acceptance and regulatory approval of new products and services · non-banking activities · reliance on other companies for infrastructure components · integration of acquired companies · attracting and retaining key personnel · stock price volatility. See, for

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example, “Factors That May Affect Future Results” in Part I, Item 2 of the Form 10-Q/A and “Regulation and Supervision” in Part I, Item 1 of the Form 10-K/A.

            Any factor described in this news release, in the Forms 10-Q, 10-Q/A, 10-K or 10-K/A, 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 $388 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									Year
	ended December 31					,	%			ended December 31					,	%
(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	$	1,624		$	1,472			10	%	$	6,202		$	5,710			9	%
Diluted earnings per common share		.95			.86			10			3.65			3.32			10
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.67	%		1.72	%		(3	)		1.64	%		1.77	%		(7	)
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.20			19.44			(1	)		19.36			19.63			(1	)
After effect of change in accounting principle
Net income	$	1,624		$	1,472			10		$	6,202		$	5,434			14
Diluted earnings per common share		.95			.86			10			3.65			3.16			16
Profitability ratios (annualized)
ROA		1.67	%		1.72	%		(3	)		1.64	%		1.69	%		(3	)
ROE		19.20			19.44			(1	)		19.36			18.68			4
Efficiency ratio (2)		60.5			59.3			2			60.6			58.3			4
Total revenue	$	7,445		$	6,665			12		$	28,389		$	25,249			12
Dividends declared per common share		.45			.28			61			1.50			1.10			36
Average common shares outstanding		1,690.2			1,690.4			—			1,681.1			1,701.1			(1	)
Diluted average common shares outstanding		1,712.6			1,704.0			1			1,697.5			1,718.0			(1	)
Average loans	$	235,986		$	179,515			31		$	213,132		$	174,482			22
Average assets		384,744			340,193			13			377,613			321,725			17
Average core deposits		210,026			194,850			8			207,046			184,133			12
Net interest margin		4.97	%		5.41	%		(8	)		5.08	%		5.53	%		(8	)
At Period End
Securities available for sale	$	32,953		$	27,947			18		$	32,953		$	27,947			18
Loans		253,073			192,478			31			253,073			192,478			31
Allowance for loan losses		3,891			3,819			2			3,891			3,819			2
Goodwill		10,371			9,753			6			10,371			9,753			6
Assets		387,798			349,197			11			387,798			349,197			11
Core deposits		211,271			198,234			7			211,271			198,234			7
Common stockholders’ equity		34,484			30,258			14			34,484			30,258			14
Stockholders’ equity		34,469			30,319			14			34,469			30,319			14
Capital ratios
Common stockholders’ equity to assets		8.89	%		8.67	%		3			8.89	%		8.67	%		3
Stockholders’ equity to assets		8.89			8.68			2			8.89			8.68			2
Risk-based capital (3)
Tier 1 capital		8.33			7.70			8			8.33			7.70			8
Total capital		12.09			11.44			6			12.09			11.44			6
Tier 1 leverage (3)		6.93			6.57			5			6.93			6.57			5
Book value per common share	$	20.31		$	17.95			13		$	20.31		$	17.95			13
Staff (active, full-time equivalent)		140,000			127,500			10			140,000			127,500			10
Common Stock Price
High	$	59.18		$	51.60			15		$	59.18		$	54.84			8
Low		51.68			43.30			19			43.27			38.10			14
Period end		58.89			46.87			26			58.89			46.87			26

(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 December 31, 2003 ratios are preliminary.

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Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

	Quarter									Year
	ended December 31					,	%			ended December 31				,	%
(in millions, except per share amounts)	2003			2002			Change			2003		2002			Change
INTEREST INCOME
Securities available for sale	$	458		$	531			(14	)%	$	1,816	$	2,424			(25	)%
Mortgages held for sale		551			828			(33	)		3,136		2,450			28
Loans held for sale		60			58			3			251		252			—
Loans		3,713			3,264			14			13,937		13,045			7
Other interest income		74			63			17			278		288			(3	)
Total interest income		4,856			4,744			2			19,418		18,459			5
INTEREST EXPENSE
Deposits		377			460			(18	)		1,613		1,919			(16	)
Short-term borrowings		68			107			(36	)		322		536			(40	)
Long-term debt		335			363			(8	)		1,355		1,404			(3	)
Guaranteed preferred beneficial interests in Company’s subordinated debentures		32			29			10			121		118			3
Total interest expense		812			959			(15	)		3,411		3,977			(14	)
NET INTEREST INCOME		4,044			3,785			7			16,007		14,482			11
Provision for loan losses		465			426			9			1,722		1,684			2
Net interest income after provision for loan losses		3,579			3,359			7			14,285		12,798			12
NONINTEREST INCOME
Service charges on deposit accounts		613			567			8			2,361		2,179			8
Trust and investment fees		504			480			5			1,937		1,875			3
Credit card fees		252			255			(1	)		1,003		920			9
Other fees		412			375			10			1,572		1,384			14
Mortgage banking		636			515			23			2,512		1,713			47
Operating leases		211			252			(16	)		937		1,115			(16	)
Insurance		264			231			14			1,071		997			7
Net gains (losses) on debt securities available for sale		(12	)		91			—			4		293			(99	)
Net gains (losses) from equity investments		143			(96	)		—			55		(327	)		—
Other		378			210			80			930		618			50
Total noninterest income		3,401			2,880			18			12,382		10,767			15
NONINTEREST EXPENSE
Salaries		1,351			1,091			24			4,832		4,383			10
Incentive compensation		483			541			(11	)		2,054		1,706			20
Employee benefits		417			287			45			1,560		1,283			22
Equipment		375			317			18			1,246		1,014			23
Net occupancy		310			281			10			1,177		1,102			7
Operating leases		162			184			(12	)		702		802			(12	)
Net losses on dispositions of premises and equipment		36			26			38			46		52			(12	)
Other		1,366			1,227			11			5,573		4,369			28
Total noninterest expense		4,500			3,954			14			17,190		14,711			17
INCOME BEFORE INCOME TAX EXPENSE AND EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE		2,480			2,285			9			9,477		8,854			7
Income tax expense		856			813			5			3,275		3,144			4
NET INCOME BEFORE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE		1,624			1,472			10			6,202		5,710			9
Cumulative effect of change in accounting principle		—			—			—			—		(276	)		(100	)
NET INCOME	$	1,624		$	1,472			10	%	$	6,202	$	5,434			14	%
NET INCOME APPLICABLE TO COMMON STOCK	$	1,624		$	1,471			10	%	$	6,199	$	5,430			14	%
EARNINGS PER COMMON SHARE BEFORE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
Earnings per common share	$	.96		$	.87			10	%	$	3.69	$	3.35			10	%
Diluted earnings per common share	$	.95		$	.86			10	%	$	3.65	$	3.32			10	%
EARNINGS PER COMMON SHARE
Earnings per common share	$	.96		$	.87			10	%	$	3.69	$	3.19			16	%
Diluted earnings per common share	$	.95		$	.86			10	%	$	3.65	$	3.16			16	%
DIVIDENDS DECLARED PER COMMON SHARE	$	.45		$	.28			61	%	$	1.50	$	1.10			36	%
Average common shares outstanding		1,690.2			1,690.4			—	%		1,681.1		1,701.1			(1	)%
Diluted average common shares outstanding		1,712.6			1,704.0			1	%		1,697.5		1,718.0			(1	)%

- 12 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

	December 31					,	%
(in millions, except shares)	2003			2002			Change
ASSETS
Cash and due from banks	$	15,547		$	17,820			(13	)%
Federal funds sold and securities purchased under resale agreements		2,745			3,174			(14	)
Securities available for sale		32,953			27,947			18
Mortgages held for sale		29,027			51,154			(43	)
Loans held for sale		7,497			6,665			12
Loans		253,073			192,478			31
Allowance for loan losses		3,891			3,819			2
Net loans		249,182			188,659			32
Mortgage servicing rights, net		6,906			4,489			54
Premises and equipment, net		3,534			3,688			(4	)
Goodwill		10,371			9,753			6
Other assets		30,036			35,848			(16	)
Total assets	$	387,798		$	349,197			11	%
LIABILITIES
Noninterest-bearing deposits	$	74,387		$	74,094			—	%
Interest-bearing deposits		173,140			142,822			21
Total deposits		247,527			216,916			14
Short-term borrowings		24,659			33,446			(26	)
Accrued expenses and other liabilities		17,501			18,311			(4	)
Long-term debt		63,642			47,320			34
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			2,885			(100	)
Total liabilities		353,329			318,878			11
STOCKHOLDERS’ EQUITY
Preferred stock		214			251			(15	)
Unearned ESOP shares		(229	)		(190	)		21
Total preferred stock		(15	)		61			—
Common stock – $1-2/3 par value, authorized 6,000,000,000 shares; issued 1,736,381,025 shares		2,894			2,894			—
Additional paid-in capital		9,643			9,498			2
Retained earnings		22,842			19,355			18
Cumulative other comprehensive income		938			976			(4	)
Treasury stock – 38,271,651 shares and 50,474,518 shares		(1,833	)		(2,465	)		(26	)
Total stockholders’ equity		34,469			30,319			14
Total liabilities and stockholders’ equity	$	387,798		$	349,197			11	%

- 13 -

Wells Fargo & Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

	Year ended December 31					,
(in millions)	2003			2002
Balance, beginning of period	$	30,319	��	$	27,175
Net income		6,202			5,434
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		26			1
Minimum pension liability adjustment		—			42
Change in valuation allowance related to:
Investment securities and other retained interests		(117	)		484
Derivative instruments and hedging activities		53			(303	)
Common stock issued		1,094			652
Common stock issued for acquisitions		651			535
Common stock repurchased		(1,482	)		(2,033	)
Preferred stock released to ESOP		224			206
Preferred stock redeemed		(73	)		—
Preferred stock dividends		(3	)		(4	)
Common stock dividends		(2,527	)		(1,873	)
Other, net		102			3
Balance, end of period	$	34,469		$	30,319

LOANS

	December 31,
(in millions)	2003		2002
Commercial	$	48,729	$	47,292
Real estate 1-4 family first mortgage		83,535		44,119
Other real estate mortgage		27,592		25,312
Real estate construction		8,209		7,804
Consumer:
Real estate 1-4 family junior lien mortgage		36,629		28,147
Credit card		8,351		7,455
Other revolving credit and installment		33,100		26,353
Total consumer		78,080		61,955
Lease financing		4,477		4,085
Foreign		2,451		1,911
Total loans (net of unearned income)	$	253,073	$	192,478

- 14 -

Wells Fargo & Company and Subsidiaries

CHANGES IN THE ALLOWANCE FOR LOAN LOSSES

	Quarter ended									Year ended
	Dec. 31		,	Sept. 30		,	Dec. 31		,	Dec. 31		,	Dec. 31		,
(in millions)	2003			2003			2002			2003			2002
Balance, beginning of period	$	3,854		$	3,853		$	3,816		$	3,819		$	3,717
Allowances related to business combinations/other		37			(1	)		1			69			93
Provision for loan losses		465			426			426			1,722			1,684
Loan charge-offs:
Commercial		(161	)		(136	)		(184	)		(597	)		(716	)
Real estate 1-4 family first mortgage		(15	)		(11	)		(11	)		(47	)		(39	)
Other real estate mortgage		(10	)		(12	)		(8	)		(33	)		(24	)
Real estate construction		(3	)		(2	)		(8	)		(11	)		(40	)
Consumer:
Real estate 1-4 family junior lien mortgage		(23	)		(16	)		(19	)		(77	)		(55	)
Credit card		(139	)		(109	)		(100	)		(476	)		(407	)
Other revolving credit and installment		(224	)		(206	)		(175	)		(827	)		(770	)
Total consumer		(386	)		(331	)		(294	)		(1,380	)		(1,232	)
Lease financing		(10	)		(12	)		(8	)		(41	)		(21	)
Foreign		(30	)		(29	)		(21	)		(105	)		(84	)
Total loan charge-offs		(615	)		(533	)		(534	)		(2,214	)		(2,156	)
Loan recoveries:
Commercial		72			31			41			177			162
Real estate 1-4 family first mortgage		1			3			2			10			8
Other real estate mortgage		4			2			3			11			16
Real estate construction		1			2			1			11			19
Consumer:
Real estate 1-4 family junior lien mortgage		1			5			2			13			10
Credit card		13			13			11			50			47
Other revolving credit and installment		51			46			45			196			205
Total consumer		65			64			58			259			262
Lease financing		2			2			1			8			—
Foreign		5			5			4			19			14
Total loan recoveries		150			109			110			495			481
Net loan charge-offs		(465	)		(424	)		(424	)		(1,719	)		(1,675	)
Balance, end of period	$	3,891		$	3,854		$	3,819		$	3,891		$	3,819
Net loan charge-offs (annualized) as a percentage of average total loans		.78	%		.78	%		.94	%		.81	%		.96	%
Allowance as a percentage of total loans		1.54	%		1.69	%		1.98	%		1.54	%		1.98	%
Allowance as a percentage of nonaccrual loans		267	%		254	%		256	%		267	%		256	%
Allowance as a percentage of nonaccrual loans and other assets		234	%		224	%		226	%		234	%		226	%

- 15 -

Wells Fargo & Company and Subsidiaries

NONACCRUAL LOANS AND OTHER ASSETS

	Dec. 31		,	Dec. 31		,
(in millions)	2003			2002
Nonaccrual loans:
Commercial	$	592		$	796
Real estate 1-4 family first mortgage		274			230
Other real estate mortgage		285			192
Real estate construction		56			93
Consumer:
Real estate 1-4 family junior lien mortgage		87			49
Other revolving credit and installment		88			48
Total consumer		175			97
Lease financing		73			79
Foreign		3			5
Total nonaccrual loans		1,458			1,492
As a percentage of total loans		.58	%		.78	%
Foreclosed assets		198			195
Real estate investments (1)		6			4
Total nonaccrual loans and other assets	$	1,662		$	1,691
As a percentage of total loans		.66	%		.88	%

(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 at December 31, 2003 and 2002.

- 16 -

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME

	Quarter ended Dec. 31					,	%			Year ended Dec. 31					,	%
(in millions)	2003			2002			Change			2003			2002			Change
Service charges on deposit accounts	$	613		$	567			8	%	$	2,361		$	2,179			8	%
Trust and investment fees:
Trust, investment and IRA fees		350			339			3			1,345			1,343			—
Commissions and all other fees		154			141			9			592			532			11
Total trust and investment fees		504			480			5			1,937			1,875			3
Credit card fees		252			255			(1	)		1,003			920			9
Other fees:
Cash network fees		44			43			2			179			183			(2	)
Charges and fees on loans		191			184			4			756			616			23
All other		177			148			20			637			585			9
Total other fees		412			375			10			1,572			1,384			14
Mortgage banking:
Origination and other closing fees		215			353			(39	)		1,218			1,048			16
Servicing fees, net of amortization and provision for impairment		312			(457	)		—			(954	)		(737	)		29
Net gains on mortgage loan origination/sales activities		14			520			(97	)		1,801			1,038			74
All other		95			99			(4	)		447			364			23
Total mortgage banking		636			515			23			2,512			1,713			47
Operating leases		211			252			(16	)		937			1,115			(16	)
Insurance		264			231			14			1,071			997			7
Net gains (losses) on debt securities available for sale		(12	)		91			—			4			293			(99	)
Net gains (losses) from equity investments		143			(96	)		—			55			(327	)		—
Net gains on sales of loans		5			4			25			28			19			47
Net gains on dispositions of operations		2			16			(88	)		29			10			190
All other		371			190			95			873			589			48
Total	$	3,401		$	2,880			18	%	$	12,382		$	10,767			15	%

NONINTEREST EXPENSE

	Quarter ended Dec. 31				,	%			Year ended Dec. 31				,	%
(in millions)	2003		2002			Change			2003		2002			Change
Salaries	$	1,351	$	1,091			24	%	$	4,832	$	4,383			10	%
Incentive compensation		483		541			(11	)		2,054		1,706			20
Employee benefits		417		287			45			1,560		1,283			22
Equipment		375		317			18			1,246		1,014			23
Net occupancy		310		281			10			1,177		1,102			7
Operating leases		162		184			(12	)		702		802			(12	)
Net losses on dispositions of premises and equipment		36		26			38			46		52			(12	)
Contract services		191		193			(1	)		866		546			59
Outside professional services		164		136			21			509		445			14
Outside data processing		98		88			11			404		350			15
Advertising and promotion		118		97			22			392		327			20
Travel and entertainment		114		94			21			389		337			15
Telecommunications		87		84			4			343		347			(1	)
Postage		71		67			6			336		256			31
Stationery and supplies		68		62			10			241		226			7
Insurance		31		28			11			197		169			17
Operating losses		44		48			(8	)		193		163			18
Security		38		39			(3	)		163		159			3
Core deposit intangibles		35		38			(8	)		142		155			(8	)
All other		307		253			21			1,398		889			57
Total	$	4,500	$	3,954			14	%	$	17,190	$	14,711			17	%

- 17 -

Wells Fargo & Company and Subsidiaries

AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Quarter ended December 31																	,
	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	$	2,699			.87	%	$	6		$	2,762			1.53	%	$	11
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,278			4.39			14			1,525			5.20			19
Securities of U.S. states and political subdivisions		3,141			8.02			60			2,075			8.53			42
Mortgage-backed securities:
Federal agencies		21,149			6.25			318			21,909			7.73			397
Private collateralized mortgage obligations		2,014			5.53			27			2,002			7.35			35
Total mortgage-backed securities		23,163			6.19			345			23,911			7.69			432
Other debt securities (4)		3,478			7.69			60			3,056			7.76			60
Total debt securities available for sale (4)		31,060			6.46			479			30,567			7.63			553
Mortgages held for sale (3)		41,055			5.36			551			57,134			5.79			828
Loans held for sale (3)		7,373			3.22			60			5,808			3.96			58
Loans:
Commercial		47,674			5.93			712			46,467			6.47			758
Real estate 1-4 family first mortgage		71,402			5.32			952			34,252			6.44			553
Other real estate mortgage		26,691			5.25			353			25,268			5.93			377
Real estate construction		8,151			4.96			102			7,894			5.50			109
Consumer:
Real estate 1-4 family junior lien mortgage		35,152			5.28			467			27,644			6.81			475
Credit card		8,013			11.85			237			7,150			12.12			217
Other revolving credit and installment		31,975			8.91			716			24,825			10.04			627
Total consumer		75,140			7.52			1,420			59,619			8.79			1,319
Lease financing		4,508			6.13			69			4,098			6.11			63
Foreign		2,420			17.74			107			1,917			18.14			87
Total loans (5)		235,986			6.27			3,715			179,515			7.24			3,266
Other		9,169			2.96			68			6,379			3.36			53
Total earning assets	$	327,342			5.96			4,879		$	282,165			6.77			4,769
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,744			.21			1		$	2,418			.39			2
Market rate and other savings		112,392			.61			172			97,473			.90			221
Savings certificates		19,949			2.31			116			22,774			2.89			166
Other time deposits		26,382			1.10			73			12,694			1.73			56
Deposits in foreign offices		5,992			.99			15			4,438			1.34			15
Total interest-bearing deposits		167,459			.89			377			139,797			1.30			460
Short-term borrowings		28,367			.95			68			30,175			1.41			107
Long-term debt		58,814			2.27			335			46,060			3.14			363
Guaranteed preferred beneficial interests in Company’s subordinated debentures		3,591			3.60			32			2,885			4.08			29
Total interest-bearing liabilities		258,231			1.25			812			218,917			1.74			959
Portion of noninterest-bearing funding sources		69,111			—			—			63,248			—			—
Total funding sources	$	327,342			.99			812		$	282,165			1.36			959
Net interest margin and net interest income on a taxable-equivalent basis(6)					4.97	%	$	4,067						5.41	%	$	3,810
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,083								$	14,189
Goodwill		10,209									9,756
Other		34,110									34,083
Total noninterest-earning assets	$	57,402								$	58,028
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	74,941								$	72,185
Other liabilities		18,000									19,019
Preferred stockholders’ equity		20									57
Common stockholders’ equity		33,552									30,015
Noninterest-bearing funding sources used to fund earning assets		(69,111	)								(63,248	)
Net noninterest-bearing funding sources	$	57,402								$	58,028
TOTAL ASSETS	$	384,744								$	340,193

(1)	The average prime rate of the Company was 4.00% and 4.46% for the quarters ended December 31, 2003 and 2002, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.17% and 1.55% 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)

	Year ended December 31																	,
	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	$	3,675			1.11	%	$	41		$	2,652			1.67	%	$	44
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,286			4.74			58			1,770			5.57			95
Securities of U.S. states and political subdivisions		2,424			8.62			196			2,106			8.33			167
Mortgage-backed securities:
Federal agencies		18,283			7.37			1,276			26,718			7.23			1,856
Private collateralized mortgage obligations		2,001			6.24			120			2,341			7.18			163
Total mortgage-backed securities		20,284			7.26			1,396			29,059			7.22			2,019
Other debt securities (4)		3,302			7.75			240			3,029			7.74			232
Total debt securities available for sale (4)		27,296			7.32			1,890			35,964			7.25			2,513
Mortgages held for sale (3)		58,672			5.34			3,136			39,858			6.13			2,450
Loans held for sale (3)		7,142			3.51			251			5,380			4.69			252
Loans:
Commercial		47,279			6.08			2,876			46,520			6.80			3,164
Real estate 1-4 family first mortgage		56,252			5.54			3,115			32,669			6.69			2,185
Other real estate mortgage		25,846			5.44			1,405			25,413			6.17			1,568
Real estate construction		7,954			5.11			406			7,925			5.69			451
Consumer:
Real estate 1-4 family junior lien mortgage		31,670			5.80			1,836			25,220			7.07			1,783
Credit card		7,640			12.06			922			6,810			12.27			836
Other revolving credit and installment		29,838			9.09			2,713			24,072			10.28			2,475
Total consumer		69,148			7.91			5,471			56,102			9.08			5,094
Lease financing		4,453			6.22			277			4,079			6.32			258
Foreign		2,200			18.00			396			1,774			18.90			335
Total loans (5)		213,132			6.54			13,946			174,482			7.48			13,055
Other		8,235			2.89			238			6,492			3.80			248
Total earning assets	$	318,152			6.16			19,502		$	264,828			7.04			18,562
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,571			.27			7		$	2,494			.55			14
Market rate and other savings		106,733			.66			705			93,787			.95			893
Savings certificates		20,927			2.53			529			24,278			3.21			780
Other time deposits		25,388			1.20			305			8,191			1.86			153
Deposits in foreign offices		6,060			1.11			67			5,011			1.58			79
Total interest-bearing deposits		161,679			1.00			1,613			133,761			1.43			1,919
Short-term borrowings		29,898			1.08			322			33,278			1.61			536
Long-term debt		53,823			2.52			1,355			42,158			3.33			1,404
Guaranteed preferred beneficial interests in Company’s subordinated debentures		3,306			3.66			121			2,780			4.23			118
Total interest-bearing liabilities		248,706			1.37			3,411			211,977			1.88			3,977
Portion of noninterest-bearing funding sources		69,446			—			—			52,851			—			—
Total funding sources	$	318,152			1.08			3,411		$	264,828			1.51			3,977
Net interest margin and net interest income on a taxable-equivalent basis(6)					5.08	%	$	16,091						5.53	%	$	14,585
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,433								$	13,820
Goodwill		9,905									9,737
Other		36,123									33,340
Total noninterest-earning assets	$	59,461								$	56,897
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	76,815								$	63,574
Other liabilities		20,030									17,054
Preferred stockholders’ equity		44									55
Common stockholders’ equity		32,018									29,065
Noninterest-bearing funding sources used to fund earning assets		(69,446	)								(52,851	)
Net noninterest-bearing funding sources	$	59,461								$	56,897
TOTAL ASSETS	$	377,613								$	321,725

(1)	The average prime rate of the Company was 4.12% and 4.68% for the years ended December 31, 2003 and 2002, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.22% and 1.80% for the same years, 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 all periods presented.

- 19 -

Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS

(income/expense in millions,	Community				Wholesale					Wells Fargo											Consolidated
average balances in billions)	Banking				Banking					Financial					Other (1)						Company
Quarter ended December 31,	2003		2002		2003		2002			2003		2002			2003			2002			2003		2002
Net interest income	$	2,864	$	2,727	$	561	$	565		$	638	$	496		$	(19	)	$	(3	)	$	4,044	$	3,785
Provision for loan losses		236		254		23		60			176		112			30			—			465		426
Noninterest income		2,544		2,210		750		588			96		80			11			2			3,401		2,880
Noninterest expense		3,385		3,045		694		620			370		288			51			1			4,500		3,954
Income (loss) before income tax expense (benefit)		1,787		1,638		594		473			188		176			(89	)		(2	)		2,480		2,285
Income tax expense (benefit)		605		576		212		170			69		67			(30	)		—			856		813
Net income (loss)	$	1,182	$	1,062	$	382	$	303		$	119	$	109		$	(59	)	$	(2	)	$	1,624	$	1,472
Average loans	$	162.7	$	114.1	$	49.8	$	49.1		$	23.5	$	16.3		$	—		$	—		$	236.0	$	179.5
Average assets		278.5		243.3		74.8		72.4			25.3		18.3			6.1			6.2			384.7		340.2
Average core deposits		186.3		174.8		23.6		19.9			.1		.1			—			—			210.0		194.8
Year ended December 31,
Net interest income	$	11,495	$	10,372	$	2,228	$	2,257		$	2,311	$	1,866		$	(27	)	$	(13	)	$	16,007	$	14,482
Provision for loan losses		892		865		177		278			623		541			30			—			1,722		1,684
Noninterest income		9,218		8,085		2,766		2,316			378		354			20			12			12,382		10,767
Noninterest expense		13,214		11,241		2,579		2,367			1,343		1,099			54			4			17,190		14,711
Income (loss) before income tax expense and effect of change in accounting principle		6,607		6,351		2,238		1,928			723		580			(91	)		(5	)		9,477		8,854
Income tax expense (benefit)		2,243		2,235		792		692			272		220			(32	)		(3	)		3,275		3,144
Net income (loss) before effect of change in accounting principle		4,364		4,116		1,446		1,236			451		360			(59	)		(2	)		6,202		5,710
Cumulative effect of change in accounting principle		—		—		—		(98	)		—		(178	)		—			—			—		(276	)
Net income (loss)	$	4,364	$	4,116	$	1,446	$	1,138		$	451	$	182		$	(59	)	$	(2	)	$	6,202	$	5,434
Average loans	$	143.2	$	109.9	$	49.5	$	49.4		$	20.4	$	15.2		$	—		$	—		$	213.1	$	174.5
Average assets		273.5		227.7		75.8		70.8			22.2		17.0			6.1			6.2			377.6		321.7
Average core deposits		184.6		165.6		22.3		18.4			.1		.1			—			—			207.0		184.1

(1) The reconciling items for the quarter and year ended December 31, 2003 principally relate to Corporate level equity investment activities, and other separately identified transactions recorded at the enterprise level for management reporting, including a $30 million non-recurring loss on sale of a sub-prime credit card portfolio and $51 million of other charges related to employee benefits and software. The material item in the other 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)	4Q03			3Q03			2Q03			1Q03			4Q02
For the Period
Net income	$	1,624		$	1,561		$	1,525		$	1,492		$	1,472
Diluted earnings per common share		.95			.92			.90			.88			.86
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.67	%		1.57	%		1.63	%		1.70	%		1.72	%
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.20			18.88			19.62			19.80			19.44
Efficiency ratio (1)		60.5			62.4			60.0			59.2			59.3
Total revenue	$	7,445		$	7,333		$	6,930		$	6,682		$	6,665
Dividends declared per common share		.45			.45			.30			.30			.28
Average common shares outstanding		1,690.2			1,677.2			1,675.7			1,681.5			1,690.4
Diluted average common shares outstanding		1,712.6			1,693.9			1,690.6			1,694.1			1,704.0
Average loans	$	235,986		$	216,181		$	204,824		$	195,057		$	179,515
Average assets		384,744			394,995			375,088			355,108			340,193
Average core deposits		210,026			215,685			205,428			196,802			194,850
Net interest margin		4.97	%		5.01	%		5.09	%		5.27	%		5.41	%
At Period End
Securities available for sale	$	32,953		$	30,260		$	24,625		$	26,168		$	27,947
Loans		253,073			228,137			211,434			201,822			192,478
Allowance for loan losses		3,891			3,854			3,853			3,840			3,819
Goodwill		10,371			9,849			9,803			9,799			9,753
Assets		387,798			390,750			369,583			369,607			349,197
Core deposits		211,271			209,422			210,722			203,185			198,234
Common stockholders’ equity		34,484			32,277			32,184			30,684			30,258
Stockholders’ equity		34,469			32,333			32,236			30,732			30,319
Capital ratios
Common stockholders’ equity to assets		8.89	%		8.26	%		8.71	%		8.30	%		8.67	%
Stockholders’ equity to assets		8.89			8.27			8.72			8.31			8.68
Risk-based capital (2)
Tier 1 capital		8.33			8.14			7.98			7.37			7.70
Total capital		12.09			11.62			11.50			10.94			11.44
Tier 1 leverage (2)		6.93			6.43			6.58			6.42			6.57
Book value per common share	$	20.31		$	19.25		$	19.18		$	18.32		$	17.95
Staff (active, full-time equivalent)		140,000			139,200			135,500			131,600			127,500
Common Stock Price
High	$	59.18		$	53.71		$	52.80		$	49.13		$	51.60
Low		51.68			48.90			45.01			43.27			43.30
Period end		58.89			51.50			50.40			44.99			46.87

(1)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	The December 31, 2003 ratios are preliminary.

-21-

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

(in millions, except per share amounts)	4Q03			3Q03			2Q03			1Q03			4Q02
INTEREST INCOME
Securities available for sale	$	458		$	470		$	435		$	453		$	531
Mortgages held for sale		551			906			864			814			828
Loans held for sale		60			57			67			67			58
Loans		3,713			3,482			3,409			3,332			3,264
Other interest income		74			64			80			62			63
Total interest income		4,856			4,979			4,855			4,728			4,744
INTEREST EXPENSE
Deposits		377			384			425			427			460
Short-term borrowings		68			72			87			95			107
Long-term debt		335			349			341			330			363
Guaranteed preferred beneficial interests in Company’s subordinated debentures		32			32			29			27			29
Total interest expense		812			837			882			879			959
NET INTEREST INCOME		4,044			4,142			3,973			3,849			3,785
Provision for loan losses		465			426			421			411			426
Net interest income after provision for loan losses		3,579			3,716			3,552			3,438			3,359
NONINTEREST INCOME
Service charges on deposit accounts		613			607			587			553			567
Trust and investment fees		504			504			470			460			480
Credit card fees		252			251			257			243			255
Other fees		412			422			373			366			375
Mortgage banking		636			773			543			561			515
Operating leases		211			229			245			251			252
Insurance		264			252			289			266			231
Net gains (losses) on debt securities available for sale		(12	)		(23	)		20			18			91
Net gains (losses) from equity investments		143			58			(47	)		(98	)		(96	)
Other		378			118			220			213			210
Total noninterest income		3,401			3,191			2,957			2,833			2,880
NONINTEREST EXPENSE
Salaries		1,351			1,185			1,155			1,141			1,091
Incentive compensation		483			621			503			447			541
Employee benefits		417			374			350			419			287
Equipment		375			298			305			269			317
Net occupancy		310			283			288			296			281
Operating leases		162			175			178			187			184
Net losses (gains) on dispositions of premises and equipment		36			4			10			(4	)		26
Other		1,366			1,635			1,369			1,202			1,227
Total noninterest expense		4,500			4,575			4,158			3,957			3,954
INCOME BEFORE INCOME TAX EXPENSE		2,480			2,332			2,351			2,314			2,285
Income tax expense		856			771			826			822			813
NET INCOME	$	1,624		$	1,561		$	1,525		$	1,492		$	1,472
NET INCOME APPLICABLE TO COMMON STOCK	$	1,624		$	1,560		$	1,524		$	1,491		$	1,471
EARNINGS PER COMMON SHARE
Earnings per common share	$	.96		$	.93		$	.91		$	.89		$	.87
Diluted earnings per common share	$	.95		$	.92		$	.90		$	.88		$	.86
DIVIDENDS DECLARED PER COMMON SHARE	$	.45		$	.45		$	.30		$	.30		$	.28
Average common shares outstanding		1,690.2			1,677.2			1,675.7			1,681.5			1,690.4
Diluted average common shares outstanding		1,712.6			1,693.9			1,690.6			1,694.1			1,704.0

-22-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET (QUARTER ENDED)

(in millions)	4Q03			3Q03			2Q03			1Q03			4Q02
ASSETS
Cash and due from banks	$	15,547		$	15,423		$	16,045		$	16,011		$	17,820
Federal funds sold and securities purchased under resale agreements		2,745			2,692			2,768			4,982			3,174
Securities available for sale		32,953			30,260			24,625			26,168			27,947
Mortgages held for sale		29,027			55,328			58,716			62,610			51,154
Loans held for sale		7,497			7,310			7,009			7,075			6,665
Loans		253,073			228,137			211,434			201,822			192,478
Allowance for loan losses		3,891			3,854			3,853			3,840			3,819
Net loans		249,182			224,283			207,581			197,982			188,659
Mortgage servicing rights, net		6,906			5,765			3,821			4,183			4,489
Premises and equipment, net		3,534			3,517			3,604			3,680			3,688
Goodwill		10,371			9,849			9,803			9,799			9,753
Other assets		30,036			36,323			35,611			37,117			35,848
Total assets	$	387,798		$	390,750		$	369,583		$	369,607		$	349,197
LIABILITIES
Noninterest-bearing deposits	$	74,387		$	77,175		$	80,943		$	75,330		$	74,094
Interest-bearing deposits		173,140			174,261			149,941			160,544			142,822
Total deposits		247,527			251,436			230,884			235,874			216,916
Short-term borrowings		24,659			25,589			23,883			33,196			33,446
Accrued expenses and other liabilities		17,501			18,815			20,682			19,938			18,311
Long-term debt		63,642			58,992			58,513			46,982			47,320
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			3,585			3,385			2,885			2,885
Total liabilities		353,329			358,417			337,347			338,875			318,878
STOCKHOLDERS’ EQUITY
Preferred stock		214			319			375			430			251
Unearned ESOP shares		(229	)		(263	)		(323	)		(382	)		(190	)
Total preferred stock		(15	)		56			52			48			61
Common stock		2,894			2,894			2,894			2,894			2,894
Additional paid-in capital		9,643			9,532			9,536			9,514			9,498
Retained earnings		22,842			22,064			21,281			20,310			19,355
Cumulative other comprehensive income		938			572			1,185			913			976
Treasury stock		(1,833	)		(2,785	)		(2,712	)		(2,947	)		(2,465	)
Total stockholders’ equity		34,469			32,333			32,236			30,732			30,319
Total liabilities and stockholders’ equity	$	387,798		$	390,750		$	369,583		$	369,607		$	349,197

-23-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS (QUARTER ENDED)

(in millions)	4Q03		3Q03		2Q03		1Q03		4Q02
Commercial	$	48,729	$	47,720	$	47,577	$	48,147	$	47,292
Real estate 1-4 family first mortgage		83,535		66,760		53,420		48,337		44,119
Other real estate mortgage		27,592		25,723		25,703		25,629		25,312
Real estate construction		8,209		7,777		7,853		8,032		7,804
Consumer:
Real estate 1-4 family junior lien mortgage		36,629		33,601		31,514		29,329		28,147
Credit card		8,351		7,836		7,626		7,359		7,455
Other revolving credit and installment		33,100		31,919		30,943		28,361		26,353
Total consumer		78,080		73,356		70,083		65,049		61,955
Lease financing		4,477		4,478		4,556		4,567		4,085
Foreign		2,451		2,323		2,242		2,061		1,911
Total loans (net of unearned income)	$	253,073	$	228,137	$	211,434	$	201,822	$	192,478

-24-

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

(in millions)	4Q03			3Q03			2Q03			1Q03			4Q02
Balance, beginning of quarter	$	3,854		$	3,853		$	3,840		$	3,819		$	3,816
Allowances related to business combinations/other		37			(1	)		7			25			1
Provision for loan losses		465			426			421			411			426
Loan charge-offs:
Commercial		(161	)		(136	)		(147	)		(153	)		(184	)
Real estate 1-4 family first mortgage		(15	)		(11	)		(9	)		(13	)		(11	)
Other real estate mortgage		(10	)		(12	)		(9	)		(2	)		(8	)
Real estate construction		(3	)		(2	)		(3	)		(3	)		(8	)
Consumer:
Real estate 1-4 family junior lien mortgage		(23	)		(16	)		(19	)		(18	)		(19	)
Credit card		(139	)		(109	)		(116	)		(112	)		(100	)
Other revolving credit and installment		(224	)		(206	)		(198	)		(198	)		(175	)
Total consumer		(386	)		(331	)		(333	)		(328	)		(294	)
Lease financing		(10	)		(12	)		(10	)		(11	)		(8	)
Foreign		(30	)		(29	)		(25	)		(20	)		(21	)
Total loan charge-offs		(615	)		(533	)		(536	)		(530	)		(534	)
Loan recoveries:
Commercial		72			31			37			36			41
Real estate 1-4 family first mortgage		1			3			3			2			2
Other real estate mortgage		4			2			3			2			3
Real estate construction		1			2			4			5			1
Consumer:
Real estate 1-4 family junior lien mortgage		1			5			4			3			2
Credit card		13			13			13			12			11
Other revolving credit and installment		51			46			50			51			45
Total consumer		65			64			67			66			58
Lease financing		2			2			2			1			1
Foreign		5			5			5			3			4
Total loan recoveries		150			109			121			115			110
Net loan charge-offs		(465	)		(424	)		(415	)		(415	)		(424	)
Balance, end of quarter	$	3,891		$	3,854		$	3,853		$	3,840		$	3,819
Net loan charge-offs (annualized) as a percentage of average total loans		.78	%		.78	%		.81	%		.86	%		.94	%
Allowance as a percentage of total loans		1.54	%		1.69	%		1.82	%		1.90	%		1.98	%
Allowance as a percentage of nonaccrual loans		267	%		254	%		247	%		246	%		256	%
Allowance as a percentage of nonaccrual loans and other assets		234	%		224	%		219	%		218	%		226	%

-25-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS (QUARTER ENDED)

(in millions)	4Q03			3Q03			2Q03			1Q03			4Q02
Nonaccrual loans:
Commercial	$	592		$	713		$	787		$	836		$	796
Real estate 1-4 family first mortgage		274			258			242			239			230
Other real estate mortgage		285			267			263			222			192
Real estate construction		56			48			61			72			93
Consumer:
Real estate 1-4 family junior lien mortgage		87			79			69			60			49
Other revolving credit and installment		88			78			49			44			48
Total consumer		175			157			118			104			97
Lease financing		73			71			85			85			79
Foreign		3			3			5			5			5
Total nonaccrual loans		1,458			1,517			1,561			1,563			1,492
As a percentage of total loans		.58	%		.66	%		.74	%		.77	%		.78	%
Foreclosed assets		198			196			190			193			195
Real estate investments		6			6			5			5			4
Total nonaccrual loans and other assets	$	1,662		$	1,719		$	1,756		$	1,761		$	1,691
As a percentage of total loans		.66	%		.75	%		.83	%		.87	%		.88	%

-26-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

(in millions)	4Q03			3Q03			2Q03			1Q03			4Q02
Service charges on deposit accounts	$	613		$	607		$	587		$	553		$	567
Trust and investment fees:
Trust, investment and IRA fees		350			348			322			324			339
Commissions and all other fees		154			156			148			136			141
Total trust and investment fees		504			504			470			460			480
Credit card fees		252			251			257			243			255
Other fees:
Cash network fees		44			48			46			42			43
Charges and fees on loans		191			199			186			180			184
All other		177			175			141			144			148
Total other fees		412			422			373			366			375
Mortgage banking:
Origination and other closing fees		215			393			334			276			353
Servicing fees, net of amortization and provision for impairment		312			(82	)		(741	)		(443	)		(457	)
Net gains on mortgage loan origination/sales activities		14			319			831			637			520
All other		95			143			119			91			99
Total mortgage banking		636			773			543			561			515
Operating leases		211			229			245			251			252
Insurance		264			252			289			266			231
Net gains (losses) on debt securities available for sale		(12	)		(23	)		20			18			91
Net gains (losses) from equity investments		143			58			(47	)		(98	)		(96	)
Net gains (losses) on sales of loans		5			19			5			(1	)		4
Net gains on dispositions of operations		2			—			—			27			16
All other		371			99			215			187			190
Total	$	3,401		$	3,191		$	2,957		$	2,833		$	2,880

FIVE QUARTER NONINTEREST EXPENSE

(in millions)	4Q03		3Q03		2Q03		1Q03			4Q02
Salaries	$	1,351	$	1,185	$	1,155	$	1,141		$	1,091
Incentive compensation		483		621		503		447			541
Employee benefits		417		374		350		419			287
Equipment		375		298		305		269			317
Net occupancy		310		283		288		296			281
Operating leases		162		175		178		187			184
Net losses (gains) on dispositions of premises and equipment		36		4		10		(4	)		26
Contract services		191		270		250		155			193
Outside professional services		164		122		111		112			136
Outside data processing		98		105		103		98			88
Advertising and promotion		118		98		96		81			97
Travel and entertainment		114		98		92		85			94
Telecommunications		87		92		86		78			84
Postage		71		94		87		84			67
Stationery and supplies		68		62		57		54			62
Insurance		31		48		69		50			28
Operating losses		44		29		64		57			48
Security		38		41		42		42			39
Core deposit intangibles		35		35		36		37			38
All other		307		541		276		269			253
Total	$	4,500	$	4,575	$	4,158	$	3,957		$	3,954

-27-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES (TAXABLE-EQUIVALENT BASIS)

(in millions)	4Q03			3Q03			2Q03			1Q03			4Q02
EARNING ASSETS
Federal funds sold and securities purchased under resale agreements	$	2,699		$	2,514		$	6,405		$	3,101		$	2,762
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,278			1,283			1,288			1,294			1,525
Securities of U.S. states and political subdivisions		3,141			2,442			2,063			2,040			2,075
Mortgage backed securities:
Federal agencies		21,149			18,538			15,696			17,709			21,909
Private collateralized mortgage obligations		2,014			1,972			1,994			2,025			2,002
Total mortgage-backed securities		23,163			20,510			17,690			19,734			23,911
Other debt securities (1)		3,478			3,540			3,167			3,013			3,056
Total debt securities available for sale (1)		31,060			27,775			24,208			26,081			30,567
Mortgages held for sale		41,055			69,786			65,493			58,422			57,134
Loans held for sale		7,373			7,124			7,063			7,002			5,808
Loans:
Commercial		47,674			46,947			47,484			47,007			46,467
Real estate 1-4 family first mortgage		71,402			57,817			50,292			45,193			34,252
Other real estate mortgage		26,691			25,635			25,661			25,385			25,268
Real estate construction		8,151			7,775			7,983			7,908			7,894
Consumer:
Real estate 1-4 family junior lien mortgage		35,152			32,512			30,341			28,596			27,644
Credit card		8,013			7,683			7,456			7,400			7,150
Other revolving credit and installment		31,975			31,053			28,876			27,383			24,825
Total consumer		75,140			71,248			66,673			63,379			59,619
Lease financing		4,508			4,497			4,570			4,234			4,098
Foreign		2,420			2,262			2,161			1,951			1,917
Total loans (2)		235,986			216,181			204,824			195,057			179,515
Other		9,169			8,905			7,717			7,115			6,379
Total earning assets	$	327,342		$	332,285		$	315,710		$	296,778		$	282,165
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,744		$	2,592		$	2,536		$	2,406		$	2,418
Market rate and other savings		112,392			108,969			104,603			100,816			97,473
Savings certificates		19,949			20,429			21,355			22,004			22,774
Other time deposits		26,382			27,633			26,912			20,531			12,694
Deposits in foreign offices		5,992			5,643			6,278			6,337			4,438
Total interest-bearing deposits		167,459			165,266			161,684			152,094			139,797
Short-term borrowings		28,367			29,572			30,218			31,473			30,175
Long-term debt		58,814			57,960			51,677			46,662			46,060
Guaranteed preferred beneficial interests in Company’s subordinated debentures		3,591			3,525			3,215			2,885			2,885
Total interest-bearing liabilities		258,231			256,323			246,794			233,114			218,917
Portion of noninterest-bearing funding sources		69,111			75,962			68,916			63,664			63,248
Total funding sources	$	327,342		$	332,285		$	315,710		$	296,778		$	282,165
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,083		$	13,642		$	13,320		$	13,691		$	14,189
Goodwill		10,209			9,817			9,802			9,789			9,756
Other		34,110			39,251			36,256			34,850			34,083
Total noninterest-earning assets	$	57,402		$	62,710		$	59,378		$	58,330		$	58,028
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	74,941		$	83,695		$	76,934		$	71,576		$	72,185
Other liabilities		18,000			22,139			20,169			19,810			19,019
Preferred stockholders’ equity		20			50			47			60			57
Common stockholders’ equity		33,552			32,788			31,144			30,548			30,015
Noninterest-bearing funding sources used to fund earning assets		(69,111	)		(75,962	)		(68,916	)		(63,664	)		(63,248	)
Net noninterest-bearing funding sources	$	57,402		$	62,710		$	59,378		$	58,330		$	58,028
TOTAL ASSETS	$	384,744		$	394,995		$	375,088		$	355,108		$	340,193

(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)	4Q03			3Q03			2Q03			1Q03			4Q02
COMMUNITY BANKING
Net interest income	$	2,864		$	2,990		$	2,865		$	2,777		$	2,727
Provision for loan losses		236			213			227			217			254
Noninterest income		2,544			2,379			2,186			2,109			2,210
Noninterest expense		3,385			3,603			3,200			3,026			3,045
Income before income tax expense		1,787			1,553			1,624			1,643			1,638
Income tax expense		605			488			565			585			576
Net income	$	1,182		$	1,065		$	1,059		$	1,058		$	1,062
Average loans	$	162.7		$	146.0		$	135.7		$	128.3		$	114.1
Average assets		278.5			290.2			269.5			255.4			243.3
Average core deposits		186.3			191.8			184.1			176.3			174.8
WHOLESALE BANKING
Net interest income	$	561		$	556		$	560		$	551		$	565
Provision for loan losses		23			54			46			53			60
Noninterest income		750			707			656			652			588
Noninterest expense		694			629			636			620			620
Income before income tax expense		594			580			534			530			473
Income tax expense		212			208			189			183			170
Net income	$	382		$	372		$	345		$	347		$	303
Average loans	$	49.8		$	49.0		$	49.8		$	49.3		$	49.1
Average assets		74.8			75.7			78.4			74.1			72.4
Average core deposits		23.6			23.8			21.2			20.4			19.9
WELLS FARGO FINANCIAL
Net interest income	$	638		$	599		$	550		$	523		$	496
Provision for loan losses		176			159			148			141			112
Noninterest income		96			97			95			91			80
Noninterest expense		370			343			321			308			288
Income before income tax expense		188			194			176			165			176
Income tax expense		69			73			66			63			67
Net income	$	119		$	121		$	110		$	102		$	109
Average loans	$	23.5		$	21.2		$	19.3		$	17.5		$	16.3
Average assets		25.3			22.9			21.1			19.4			18.3
Average core deposits		.1			.1			.1			.1			.1
OTHER(1)
Net interest income	$	(19	)	$	(3	)	$	(2	)	$	(2	)	$	(3	)
Provision for loan losses		30			—			—			—			—
Noninterest income		11			8			20			(19	)		2
Noninterest expense		51			—			1			3			1
Income (loss) before income tax expense (benefit)		(89	)		5			17			(24	)		(2	)
Income tax expense (benefit)		(30	)		2			6			(9	)		—
Net income (loss)	$	(59	)	$	3		$	11		$	(15	)	$	(2	)
Average loans	$	—		$	—		$	—		$	—		$	—
Average assets		6.1			6.2			6.1			6.2			6.2
Average core deposits		—			—			—			—			—
CONSOLIDATED COMPANY
Net interest income	$	4,044		$	4,142		$	3,973		$	3,849		$	3,785
Provision for loan losses		465			426			421			411			426
Noninterest income		3,401			3,191			2,957			2,833			2,880
Noninterest expense		4,500			4,575			4,158			3,957			3,954
Income before income tax expense		2,480			2,332			2,351			2,314			2,285
Income tax expense		856			771			826			822			813
Net income	$	1,624		$	1,561		$	1,525		$	1,492		$	1,472
Average loans	$	236.0		$	216.2		$	204.8		$	195.1		$	179.5
Average assets		384.7			395.0			375.1			355.1			340.2
Average core deposits		210.0			215.7			205.4			196.8			194.8

(1) The reconciling items for the quarter ended December 31, 2003 principally relate to Corporate level equity investment activities, and other separately identified transactions recorded at the enterprise level for management reporting, including a $30 million non-recurring loss on sale of a sub-prime credit card portfolio and $51 million of other charges related to employee benefits and software. The material item in other 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)	4Q03			3Q03			2Q03			1Q03			4Q02
Mortgage Servicing Rights:
Balance, beginning of quarter	$	7,589		$	6,375		$	6,652		$	6,677		$	6,174
Originations		674			1,377			892			603			793
Purchases		410			874			462			394			490
Amortization		(459	)		(572	)		(926	)		(803	)		(671	)
Write-down		—			(492	)		(535	)		(311	)		(184	)
Other (includes changes in mortgage servicing rights due to hedging)		634			27			(170	)		92			75
Balance before valuation allowance, end of quarter		8,848			7,589			6,375			6,652			6,677
Less: Valuation allowance		1,942			1,824			2,554			2,469			2,188
Balance, end of quarter	$	6,906		$	5,765		$	3,821		$	4,183		$	4,489
Mortgage Servicing Rights Valuation Allowance:
Balance, beginning of quarter	$	1,824		$	2,554		$	2,469		$	2,188		$	1,759
Provision for mortgage servicing rights in excess of fair value		118			—			620			592			613
Reversal of provision for mortgage servicing rights in excess of fair value		—			(238	)		—			—			—
Write-down of mortgage servicing rights		—			(492	)		(535	)		(311	)		(184	)
Balance, end of quarter	$	1,942		$	1,824		$	2,554		$	2,469		$	2,188
Ratio of mortgage servicing rights to related mortgage loans serviced for others		1.15	%		1.03	%		.73	%		.84	%		.92	%

(in billions)	4Q03			3Q03			2Q03			1Q03			4Q02
Managed Servicing Portfolio:
Loans serviced for others	$	598		$	560		$	522		$	499		$	487
Owned loans serviced (Portfolio & Warehouse)		112			121			111			110			94
Total owned servicing		710			681			633			609			581
Sub-servicing		21			18			23			29			36
Total	$	731		$	699		$	656		$	638		$	617
Weighted-average note rate (owned servicing only)		5.90	%		5.98	%		6.23	%		6.49	%		6.67	%

(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 AND SERVICING DATA

(in billions)	4Q03			3Q03			2Q03			1Q03			4Q02
Application Data:(1)
Residential real estate first mortgage quarterly applications	$	71		$	135		$	204		$	157		$	121
Percentage of refinances		45	%		59	%		77	%		77	%		71	%
Residential real estate first mortgage unclosed pipeline, at quarter end	$	46		$	62		$	120		$	89		$	69

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

(in billions)	4Q03		3Q03		2Q03		1Q03		4Q02
Residential Real Estate Originations:(1)
Quarter:
Residential real estate first mortgage loans:
Retail	$	31	$	80	$	73	$	51	$	54
Correspondent/Wholesale		30		71		54		46		52
Home equity loans and lines		8		8		7		5		5
Wells Fargo Financial		2		2		1		1		1
Total	$	71	$	161	$	135	$	103	$	112
Year-to-date	$	470	$	399	$	238	$	103	$	333

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