Wells Fargo & Company (WFC) 8-K Wells Fargo Reports Record Quarterly Earnings Per Share and Net Income

EXHIBIT 99

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

Tuesday, April 20, 2004

WELLS FARGO REPORTS RECORD
QUARTERLY EARNINGS PER SHARE AND NET INCOME

First Quarter 2004 Highlights:

• Record diluted earnings per share of $1.03, up 17 percent from prior year’s $.88

• Record net income of $1.8 billion, up 18 percent from prior year’s $1.5 billion

• Return on equity of 20.31 percent, highest since Norwest-Wells Fargo merger

• Revenue up 7 percent from prior year; 15 percent revenue growth in businesses other than Wells Fargo Home Mortgage

• Strong balance sheet growth

• Average loans up 31 percent from prior year

• Average core deposits up 8 percent from prior year

• Improved asset quality

• Net charge-offs down $61 million, or 13 percent, from prior quarter

• Nonperforming assets down $51 million from prior quarter

• Improved operating efficiency

• Revenue up 7 percent; expenses up 2 percent from prior year

• Efficiency ratio improved to 56.4 percent from 60.5 percent in prior quarter

	First Quarter
								%
		2004			2003		Change
Earnings
Diluted earnings per share	$	1.03		$	.88			17	%
Net Income (in millions)		1,767			1,492			18
Asset Quality
Net charge-offs (in millions)		404			415			(3	)
Nonperforming assets as % of total loans		.61	%		.87	%		(30	)
Nonperforming assets (in millions)	$	1,611		$	1,761			(9	)
Revenue-Related
Revenue (in millions)		7,147			6,682			7
Average loans (in billions)		256.4			195.1			31
Average core deposits (in billions)		213.1			196.8			8

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SAN FRANCISCO — Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share of $1.03 for first quarter 2004, compared with $.88 in first quarter 2003, up 17 percent. Net income was a record $1.8 billion, up 18 percent from $1.5 billion in first quarter 2003.

     “We’ve now achieved eleven consecutive quarters of record profits and earnings per share — further proof that our business model — time-tested, customer-centric and diversified across virtually all of financial services - can deliver outstanding results regardless of the economic cycle,” said Chairman and CEO Dick Kovacevich. “This was an outstanding, record-breaking quarter, with revenues growing over three times faster than our expenses from a year ago - better than our long-term goal of growing revenue twice as fast as expenses. Our 143,000 talented team members continue to increase market share and wallet share by satisfying the financial needs of our 23 million customers and earning more of their business. Our credit quality remained among the very best in our industry, with continued declines in nonperforming assets and net charge-offs despite a 31 percent increase in loans. We believe we’re well positioned for even more growth in part because we continue to reinvest in our businesses. During the past three years, for example, we added 8,700 more sales people in Community Banking, Wholesale Banking and Wells Fargo Financial. Wells Fargo was one of three companies among the S&P100 that for the past five years grew earnings per share 13 percent or more, grew revenue 12 percent or more, and achieved a return on equity of more than 19 percent. And, we’re the only one whose principal subsidiary is rated ‘Aaa’ by Moody’s.”

Financial Performance

     Diluted earnings per share were $1.03, up 17 percent from $.88 in first quarter 2003. “This was a truly outstanding first quarter,” said Chief Financial Officer Howard Atkins. “Operating leverage improved this quarter, with revenue growing at seven percent and expenses at only two percent. Business trends accelerated with revenue growth of 15 percent in businesses other than Wells Fargo Home Mortgage; loan losses declined to $404 million despite the continued growth in our loan portfolio; return on assets increased to 1.84 percent and return on equity increased to 20.31 percent, the best returns we’ve had since the Norwest-Wells Fargo merger.”

Revenue

     Revenue of $7.1 billion grew $465 million, or 7 percent, year-over-year and declined $298 million, or 4 percent, on a linked-quarter basis. Due to the increase in mortgage interest rates late in 2003, Home Mortgage revenue declined from $1.2 billion in first quarter 2003 to $.8 billion in first quarter 2004. Combined revenue of all the businesses other than Home Mortgage grew 15 percent from $5.5 billion to $6.3 billion year-over-year. “Revenue growth in the quarter was broad-based, led by year-over-year double-digit growth in consumer deposits and loans, consumer finance, asset-based lending, trade finance, small business lending, private client services and capital markets-related activities,” said Atkins.

Loans

     Average loans of $256.4 billion in first quarter 2004 increased $61.4 billion, or 31 percent, from first quarter 2003 and $20.5 billion, or 35 percent (annualized), on a linked-quarter basis. “Loan growth continued to be driven by strong demand for consumer credit, including home equity, credit card, home mortgage, revolving credit and installment loan products,” said Atkins. On a combined basis, these consumer loans increased $57 billion, or

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52 percent, from first quarter 2003, and $19 billion, or 52 percent (annualized), on a linked-quarter basis.

     Average commercial and commercial real estate loans increased $1,399 million, or 6 percent (annualized), from fourth quarter 2003. Approximately $550 million of this increase was due to the acquisition of Pacific Northwest Bancorp in fourth quarter 2003. “We’re encouraged by small business loan growth in our Business Direct and SBA lending groups and the generally improving confidence of our commercial customers,” said Atkins.

Deposits

     Average core deposits, which provide a relatively stable source of funds, of $213.1 billion for first quarter 2004 grew $16.3 billion, or 8 percent, from first quarter 2003, and increased $3.1 billion, or 6 percent (annualized), on a linked-quarter basis. Average mortgage escrow deposits were $12.5 billion for first quarter 2004, down $1.6 billion from fourth quarter 2003 and down $4.9 billion from first quarter 2003. Excluding mortgage escrow deposits, total average core deposits grew $21 billion, or 12 percent, from first quarter 2003 and $5 billion, or 10 percent (annualized), on a linked-quarter basis.

     “Our core deposit growth reflected strong sales of both commercial and consumer accounts,” said Atkins. Excluding mortgage escrow deposits, Community Banking grew average core deposits 11 percent from first quarter 2003 and 8 percent (annualized) from fourth quarter 2003. Average consumer checking account balances grew 12 percent both from first quarter 2003 and on a linked-quarter basis (annualized), reflecting a 5.1 percent increase in net consumer checking accounts from a year ago and higher average balances. Wholesale Banking’s average core deposits increased 21 percent from first quarter 2003 and 20 percent (annualized) from fourth quarter 2003.

Net Interest Income

     Net interest income increased 5 percent year-over-year on 12 percent earning asset growth, offset by a decline in the net interest margin. On a linked-quarter basis, net interest income was essentially flat. The $33 billion reduction in average mortgage loans held for sale from record levels last year was offset by a $61 billion increase in average total loans, which grew 31 percent year-over-year and 35 percent (annualized) on a linked-quarter basis. Net interest margin was essentially unchanged (down 3 basis points) from fourth quarter 2003 to first quarter 2004, with the benefit of the strategic actions taken in the second half of last year offsetting the impact of continued low interest rates on the margin.

Noninterest Income

     Noninterest income increased $264 million, or 9 percent, from first quarter 2003, 22 percent excluding mortgage banking fee income. “The substantial growth in fee income in our non-mortgage banking activities reflected improved business conditions and broad-based growth across the Company, with particular strength in deposit service fees, insurance income, trust and investment fees, credit card fees and other fees and commissions,” said Atkins. During the quarter, the Company realized $95 million in equity gains. “Given the strength of the equity markets and the significant actions we have taken in the last two years to write down our equity portfolios, we are encouraged by the quality of the portfolio and expect additional gains going forward, although not necessarily the same amount we realized this quarter.”

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Noninterest income declined $304 million on a linked-quarter basis, due entirely to the decline in mortgage banking income. The quarter included $400 million of provision for temporary impairment of mortgage servicing rights and a $169 million permanent write-down of mortgage servicing rights. Due to the decline in mortgage interest rates during March, Home Mortgage applications rose substantially, with total applications in the quarter of $119 billion, an increase of $48 billion from fourth quarter 2003. “With an application pipeline of $72 billion at quarter end, we would expect originations and average mortgage loans held for sale in second quarter 2004 to be higher than first quarter,” said Atkins.

Noninterest Expense

     Noninterest expense was $4.03 billion in first quarter 2004, up $72 million, or 2 percent, from first quarter 2003. Home Mortgage expenses declined approximately $115 million from first quarter 2003 reflecting lower production and staffing costs.

     On a linked-quarter basis, noninterest expense decreased $471 million. Approximately $250 million of the reduction in noninterest expense was attributable to lower Home Mortgage production in the quarter. The remainder of the expense reduction reflected the ongoing benefit of the strategic actions in the second half of 2003, as well as efforts to reduce purchased goods and services and facilities costs. Total merger integration and charter consolidation expenses in first quarter 2004 were $13 million. The efficiency ratio improved to 56.4 percent in first quarter 2004 from 59.2 percent in first quarter 2003 and 60.5 percent in fourth quarter 2003.

Credit Quality

     “Credit quality continued to improve, with nonperforming assets, charge-offs and charge-off ratios all declining,” said Chief Credit Officer Dave Munio. “First quarter losses of $404 million (.63 percent of loans outstanding annualized) were down $61 million, or 13 percent from $465 million (.78 percent of loans outstanding annualized) in fourth quarter 2003 and down from $415 million (.86 percent of loans outstanding annualized) a year ago. Our credit results reflected low loss rates in our commercial portfolios and continued satisfactory performance in retail, which tracked national and regional trends. Housing values across the U.S. continued to be stable to improving, which moderated losses in our real estate portfolios. Our consumer bankruptcy results mirrored the national year-over-year decline of approximately 3 percent and delinquencies remained at the lower end of expected results. Given the substantial growth in our consumer loan portfolios, we would expect consumer loan losses and loss rates to increase at some point as these portfolios season.”

     Nonperforming assets were $1.61 billion, or .61 percent of total loans, down 3 percent from $1.66 billion (.66 percent) last quarter and down 9 percent from $1.76 billion (.87 percent) in first quarter 2003. “Commercial nonperforming loans continued to decline modestly, partially offset by the growth and seasoning of our home mortgage real estate portfolio,” said Munio. The allowance of $3.89 billion continued to provide over two times coverage of annualized losses and nonperforming assets.

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Business Segment Performance

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

	First Quarter
						%
(in millions)		2004		2003	Change
Community Banking	$	1,167	$	1,058		10	%
Wholesale Banking		448		347		29
Wells Fargo Financial		136		102		33

     More financial information about the business segments is on page 23.

     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

	First Quarter
						%
(in millions)		2004		2003	Change
Total revenue	$	4,986	$	4,886		2	%
Provision for loan losses		214		217		(1	)
Noninterest expense		2,994		3,026		(1	)
Net income		1,167		1,058		10
Average loans (in billions)		180.3		128.3		41
Average assets (in billions)		277.4		255.4		9

• Record core product sales of 3.24 million for the quarter, up 23 percent from prior year

• 1,000 additional platform bankers from prior year

• Banker productivity of 4.88 core sales per day, up 10 percent from prior year

• Core deposits up 7 percent from prior year

• Loans up 41 percent from prior year

• Mortgage application pipeline of $72 billion, up $26 billion from December 31, 2003

• Net consumer checking account growth of 5.1 percent from prior year

• Internet:

o 5.2 million active online customers, up 33 percent from prior year

o 1.8 million bill pay customers at quarter end, up 34 percent prior year

o 450,000 active online small business customers, up 44 percent from prior year

o Online merchant transactions totaled $3.8 billion in the quarter, up 49 percent from prior year

     Community Banking reported net income of $1,167 million in first quarter 2004, compared with $1,058 million for the same period of 2003, up 10 percent. First quarter revenue grew 2 percent compared with the same period of 2003, but was adversely affected by the 33 percent decline in mortgage banking revenue. Net interest income increased by $69 million, compared with first quarter 2003, primarily due to growth in consumer and 1-4

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family loans and deposits, which offset the decrease in mortgages held for sale, with the increase in interest income partially offset by a decline in the net interest margin. Noninterest income was up $31 million in first quarter 2004, compared with 2003. Noninterest expense decreased by $32 million in first quarter 2004, or 1 percent, compared with the same period of 2003, due primarily to a decline in mortgage origination volumes. The provision for loan losses decreased by $3 million in first quarter 2004 compared with first quarter 2003.

     “We achieved record sales this quarter, thanks to the dedication and hard work of our team,” said John Stumpf, Group EVP, Community Banking. “Core product sales were 3.24 million, up 23 percent from the same period last year. The number of retail bankers increased 10 percent from a year ago, while our sales per platform banker also rose 10 percent. We continued to enjoy strong net growth in consumer checking accounts, a core product for building customer relationships, up 5 percent from a year ago.”

     “We continued to see good levels of Home Mortgage sales with $65 billion of originations in the quarter,” said Mark Oman, Group EVP, Home and Consumer Finance. “The solid origination levels resulted in strong growth in the first mortgage and home equity portfolios, which were up 8 percent, and 10 percent, respectively, in the quarter.

     With the drop in mortgage interest rates during the quarter, we saw a pick up in activity, taking $119 billion in applications in the quarter, up $48 billion from fourth quarter 2003. Reflecting this increase in activity, the mortgage application pipeline ended the quarter at $72 billion, up $26 billion from year-end. The owned servicing portfolio grew to $725 billion, up $116 billion, or 19 percent, from the same period last year. The weighted-average note rate declined to 5.84 percent from 5.90 percent at year-end. The carrying value of mortgage servicing rights at March 31, 2004 was $6.1 billion, 1.00 percent of loans serviced for others, compared with $6.9 billion, 1.15 percent of loans served for others, at year-end.”

     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

	First Quarter
						%
(in millions)		2004		2003	Change
Total revenue	$	1,390	$	1,203		16
Provision for loan losses		23		53		(57	)
Noninterest expense		669		620		8
Net income		448		347		29
Average loans (in billions)		50.3		49.3		2
Average assets (in billions)		75.7		74.1		2

• Record revenue of $1.4 billion, up 16 percent from prior year

• Noninterest income up 27 percent from prior year

• Net income up 29 percent from prior year

• Received George Mitchell Payments System Excellence Award from NACHA

     Wholesale Banking reported earnings of $448 million in first quarter 2004, up 29 percent compared with a year ago and up 17 percent on a linked-quarter basis. First quarter

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revenue of $1.4 billion was up 16 percent from first quarter 2003 and up 6 percent from fourth quarter 2003. Growth in revenue on both a year-over-year and linked-quarter basis was attributable to higher income in asset-based lending, insurance brokerage, fees and commissions and capital markets-related business. First quarter expenses were up 8 percent from a year ago, primarily due to higher personnel expense resulting from merit increases and the rise in benefit costs. On a linked-quarter basis, expenses were down 4 percent. The provision for loan losses in first quarter 2004 declined $30 million from a year ago.

     “We are extremely pleased to report strong increases in earnings across Wholesale Banking, compared with the same period last year,” said Dave Hoyt, Group EVP, Wholesale Banking. “We experienced solid growth across all of our wholesale businesses this quarter, with especially strong results from our asset-based lending and capital markets businesses. We continued to focus on building new relationships, deepening relationships through cross-sell, and improving customer satisfaction.

     Customer feedback collected by firms such as Phoenix-Hecht, Greenwich Associates, and JD Powers over the last three years indicates high and continually improving levels of customer satisfaction. These results were attributable to the high quality of our people and our focus to collect customer input throughout our businesses processes to build products and services that match our customers' needs. In March, we received the George Mitchell Payments Systems Excellence Award from the National ACH Association (NACHA) for our work delivering the electronic consumer payments system for Wells Fargo Home Mortgage. We continue to focus on making it easier for our customers to do business with us, by giving our team members better access to information so they can serve our customers more effectively and by providing more user-friendly tools to our customers.”

     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

	First Quarter
						%
(in millions)		2004		2003	Change
Total revenue	$	746	$	614		21
Provision for loan losses		167		141		18
Noninterest expense		366		308		19
Net income		136		102		33
Average loans (in billions)		25.8		17.5		47
Average assets (in billions)		27.4		19.4		41

• Net income up 33 percent from prior year

• Assets increased $2.1 billion during the quarter, topping $27 billion, driven by real estate lending and auto financing

• Real estate secured receivables up $1.5 billion, or 20 percent, to $8.9 billion

• Auto finance receivables up $.8 billion, or 14 percent, to $6.5 billion

• Sound credit quality, with losses within predicted ranges amid strong growth

     “Our record quarterly earnings of $136 million reflected the benefits of the changes made to our business model over the last several years to focus on consumer secured lending,” said Mark Oman, Group EVP, Home and Consumer Finance. “We continued to have strong receivables growth in the U.S. consumer and auto businesses. The consumer business

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continued to expand its sales force with the addition of 521 sales team members in the quarter.”

Recorded Message

     A recorded message reviewing Wells Fargo’s results will be available at 5:30 a.m. Pacific Time through April 23, 2004. Dial 800-642-1687 (domestic) or 706-645-9291 (international). Access code 6102151. The call is also available on the internet atwww.wellsfargo.com/ir andwww.vcall.com.

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

     This news release contains forward-looking statements about the Company. 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 future equity gains, expected second quarter 2004 mortgage originations and average mortgage loans held for sale, 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 Annual Report on Form 10-K for the year ended December 31, 2003, including information incorporated into the Form 10-K from the Company’s 2003 Annual Report to Stockholders, filed as Exhibit 13 to the Form 10-K. See, for example, “Financial Review-Risk Management” included in the 2003 Annual Report to Stockholders and incorporated by reference into the Form 10-K.

     Other factors described in the Form 10-K include • business and economic conditions • fiscal and monetary policies • legislation and regulation • 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 example, “Factors That May Affect Future Results” in the 2003 Annual Report to Stockholders and incorporated by reference into the Form 10-K.

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

     Wells Fargo & Company is a diversified financial services company with $397 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

										% Change
	Quarter ended									Mar. 31, 2004 from
	Mar. 31		,	Dec. 31		,	Mar. 31		,	Dec. 31		,	Mar. 31		,
(in millions, except per share amounts)	2004			2003			2003			2003			2003
For the Quarter
Net income	$	1,767		$	1,624		$	1,492			9	%		18	%
Diluted earnings per common share		1.03			.95			.88			8			17
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.84	%		1.67	%		1.70	%		10			8
Net income applicable to common stock to average common stockholders’ equity (ROE)		20.31			19.20			19.80			6			3
Efficiency ratio (1)		56.4			60.5			59.2			(7	)		(5	)
Total revenue	$	7,147		$	7,445		$	6,682			(4	)		7
Dividends declared per common share		.45			.45			.30			—			50
Average common shares outstanding		1,699.3			1,690.2			1,681.5			1			1
Diluted average common shares outstanding		1,721.2			1,712.6			1,694.1			1			2
Average loans	$	256,448		$	235,986		$	195,057			9			31
Average assets		386,614			384,744			355,108			—			9
Average core deposits (2)		213,146			210,026			196,802			1			8
Net interest margin		4.94	%		4.97	%		5.27	%		(1	)		(6	)
At Quarter End
Securities available for sale	$	32,857		$	32,953		$	26,168			—			26
Loans		264,216			253,073			201,822			4			31
Allowance for loan losses		3,891			3,891			3,840			—			1
Goodwill		10,403			10,371			9,799			—			6
Assets		397,354			387,798			369,607			2			8
Core deposits		220,105			211,271			203,185			4			8
Common stockholders’ equity		35,474			34,484			30,684			3			16
Stockholders’ equity		35,442			34,469			30,732			3			15
Capital ratios
Common stockholders’ equity to assets		8.93	%		8.89	%		8.30	%		—			8
Stockholders’ equity to assets		8.92			8.89			8.31			—			7
Risk-based capital (3)
Tier 1 capital		8.47			8.42			7.37			1			15
Total capital		12.16			12.21			10.94			—			11
Tier 1 leverage (3)		7.13			6.93			6.42			3			11
Book value per common share	$	20.90		$	20.31		$	18.32			3			14
Team members (active, full-time equivalent)		139,900			140,000			131,600			—			6
Common Stock Price
High	$	58.98		$	59.18		$	49.13			—			20
Low		55.97			51.68			43.27			8			29
Period end		56.67			58.89			44.99			(4	)		26

(1)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Core deposits consist of noninterest-bearing deposits, interest-bearing checking, savings certificates and market rate and other savings.
(3)	The March 31, 2004 ratios are preliminary.

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Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions, except per share amounts)	2004			2003			2003			2003			2003
For the Quarter
Net income	$	1,767		$	1,624		$	1,561		$	1,525		$	1,492
Diluted earnings per common share		1.03			.95			.92			.90			.88
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.84	%		1.67	%		1.57	%		1.63	%		1.70	%
Net income applicable to common stock to average common stockholders’ equity (ROE)		20.31			19.20			18.88			19.62			19.80
Efficiency ratio (1)		56.4			60.5			62.4			60.0			59.2
Total revenue	$	7,147		$	7,445		$	7,333		$	6,930		$	6,682
Dividends declared per common share		.45			.45			.45			.30			.30
Average common shares outstanding		1,699.3			1,690.2			1,677.2			1,675.7			1,681.5
Diluted average common shares outstanding		1,721.2			1,712.6			1,693.9			1,690.6			1,694.1
Average loans	$	256,448		$	235,986		$	216,181		$	204,824		$	195,057
Average assets		386,614			384,744			394,995			375,088			355,108
Average core deposits (2)		213,146			210,026			215,685			205,428			196,802
Net interest margin		4.94	%		4.97	%		5.01	%		5.09	%		5.27	%
At Quarter End
Securities available for sale	$	32,857		$	32,953		$	30,260		$	24,625		$	26,168
Loans		264,216			253,073			228,137			211,434			201,822
Allowance for loan losses		3,891			3,891			3,854			3,853			3,840
Goodwill		10,403			10,371			9,849			9,803			9,799
Assets		397,354			387,798			390,750			369,583			369,607
Core deposits		220,105			211,271			209,422			210,722			203,185
Common stockholders’ equity		35,474			34,484			32,277			32,184			30,684
Stockholders’ equity		35,442			34,469			32,333			32,236			30,732
Capital ratios
Common stockholders’ equity to assets		8.93	%		8.89	%		8.26	%		8.71	%		8.30	%
Stockholders’ equity to assets		8.92			8.89			8.27			8.72			8.31
Risk-based capital (3)
Tier 1 capital		8.47			8.42			8.14			7.98			7.37
Total capital		12.16			12.21			11.62			11.50			10.94
Tier 1 leverage (3)		7.13			6.93			6.43			6.58			6.42
Book value per common share	$	20.90		$	20.31		$	19.25		$	19.18		$	18.32
Team members (active, full-time equivalent)		139,900			140,000			139,200			135,500			131,600
Common Stock Price
High	$	58.98		$	59.18		$	53.71		$	52.80		$	49.13
Low		55.97			51.68			48.90			45.01			43.27
Period end		56.67			58.89			51.50			50.40			44.99

(1)	The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).
(2)	Core deposits consist of noninterest-bearing deposits, interest-bearing checking, savings certificates and market rate and other savings.
(3)	The March 31, 2004 ratios are preliminary.

-12-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended March 31				,	%
(in millions, except per share amounts)	2004		2003			Change
INTEREST INCOME
Securities available for sale	$	445	$	453			(2	)%
Mortgages held for sale		334		814			(59	)
Loans held for sale		63		67			(6	)
Loans		3,957		3,332			19
Other interest income		59		62			(5	)
Total interest income		4,858		4,728			3
INTEREST EXPENSE
Deposits		370		427			(13	)
Short-term borrowings		63		95			(34	)
Long-term debt		375		330			14
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—		27			(100	)
Total interest expense		808		879			(8	)
NET INTEREST INCOME		4,050		3,849			5
Provision for loan losses		404		411			(2	)
Net interest income after provision for loan losses		3,646		3,438			6
NONINTEREST INCOME
Service charges on deposit accounts		615		553			11
Trust and investment fees		535		460			16
Credit card fees		258		243			6
Other fees		414		366			13
Mortgage banking		315		561			(44	)
Operating leases		209		251			(17	)
Insurance		317		266			19
Net gains on debt securities available for sale		33		18			83
Net gains (losses) from equity investments		95		(98	)		—
Other		306		213			44
Total noninterest income		3,097		2,833			9
NONINTEREST EXPENSE
Salaries		1,277		1,141			12
Incentive compensation		391		447			(13	)
Employee benefits		492		419			17
Equipment		301		269			12
Net occupancy		294		296			(1	)
Operating leases		155		187			(17	)
Other		1,119		1,198			(7	)
Total noninterest expense		4,029		3,957			2
INCOME BEFORE INCOME TAX EXPENSE		2,714		2,314			17
Income tax expense		947		822			15
NET INCOME	$	1,767	$	1,492			18	%
NET INCOME APPLICABLE TO COMMON STOCK	$	1,767	$	1,491			19	%
EARNINGS PER COMMON SHARE
Earnings per common share	$	1.04	$	.89			17	%
Diluted earnings per common share	$	1.03	$	.88			17	%
DIVIDENDS DECLARED PER COMMON SHARE	$	.45	$	.30			50	%
Average common shares outstanding		1,699.3		1,681.5			1	%
Diluted average common shares outstanding		1,721.2		1,694.1			2	%

-13-

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

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions, except per share amounts)	2004			2003			2003			2003			2003
INTEREST INCOME
Securities available for sale	$	445		$	458		$	470		$	435		$	453
Mortgages held for sale		334			551			906			864			814
Loans held for sale		63			60			57			67			67
Loans		3,957			3,713			3,482			3,409			3,332
Other interest income		59			74			64			80			62
Total interest income		4,858			4,856			4,979			4,855			4,728
INTEREST EXPENSE
Deposits		370			377			384			425			427
Short-term borrowings		63			68			72			87			95
Long-term debt		375			335			349			341			330
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			32			32			29			27
Total interest expense		808			812			837			882			879
NET INTEREST INCOME		4,050			4,044			4,142			3,973			3,849
Provision for loan losses		404			465			426			421			411
Net interest income after provision for loan losses		3,646			3,579			3,716			3,552			3,438
NONINTEREST INCOME
Service charges on deposit accounts		615			613			607			587			553
Trust and investment fees		535			504			504			470			460
Credit card fees		258			252			251			257			243
Other fees		414			412			422			373			366
Mortgage banking		315			636			773			543			561
Operating leases		209			211			229			245			251
Insurance		317			264			252			289			266
Net gains (losses) on debt securities available for sale		33			(12	)		(23	)		20			18
Net gains (losses) from equity investments		95			143			58			(47	)		(98	)
Other		306			378			118			220			213
Total noninterest income		3,097			3,401			3,191			2,957			2,833
NONINTEREST EXPENSE
Salaries		1,277			1,351			1,185			1,155			1,141
Incentive compensation		391			483			621			503			447
Employee benefits		492			417			374			350			419
Equipment		301			375			298			305			269
Net occupancy		294			310			283			288			296
Operating leases		155			162			175			178			187
Other		1,119			1,402			1,639			1,379			1,198
Total noninterest expense		4,029			4,500			4,575			4,158			3,957
INCOME BEFORE INCOME TAX EXPENSE		2,714			2,480			2,332			2,351			2,314
Income tax expense		947			856			771			826			822
NET INCOME	$	1,767		$	1,624		$	1,561		$	1,525		$	1,492
NET INCOME APPLICABLE TO COMMON STOCK	$	1,767		$	1,624		$	1,560		$	1,524		$	1,491
EARNINGS PER COMMON SHARE
Earnings per common share	$	1.04		$	.96		$	.93		$	.91		$	.89
Diluted earnings per common share	$	1.03		$	.95		$	.92		$	.90		$	.88
DIVIDENDS DECLARED PER COMMON SHARE	$	.45		$	.45		$	.45		$	.30		$	.30
Average common shares outstanding		1,699.3			1,690.2			1,677.2			1,675.7			1,681.5
Diluted average common shares outstanding		1,721.2			1,712.6			1,693.9			1,690.6			1,694.1

-14-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

										% Change
										Mar. 31, 2004 from
	Mar. 31		,	Dec. 31		,	Mar. 31		,	Dec. 31		,	Mar. 31		,
(in millions, except shares)	2004			2003			2003			2003			2003
ASSETS
Cash and due from banks	$	13,972		$	15,547		$	16,011			(10	)%		(13	)%
Federal funds sold and securities purchased under resale agreements		2,439			2,745			4,982			(11	)		(51	)
Securities available for sale		32,857			32,953			26,168			—			26
Mortgages held for sale		26,361			29,027			62,610			(9	)		(58	)
Loans held for sale		8,037			7,497			7,075			7			14
Loans		264,216			253,073			201,822			4			31
Allowance for loan losses		3,891			3,891			3,840			—			1
Net loans		260,325			249,182			197,982			4			31
Mortgage servicing rights, net		6,097			6,906			4,183			(12	)		46
Premises and equipment, net		3,545			3,534			3,680			—			(4	)
Goodwill		10,403			10,371			9,799			—			6
Other assets		33,318			30,036			37,117			11			(10	)
Total assets	$	397,354		$	387,798		$	369,607			2	%		8	%
LIABILITIES
Noninterest-bearing deposits	$	78,253		$	74,387		$	75,330			5	%		4	%
Interest-bearing deposits		170,116			173,140			160,544			(2	)		6
Total deposits		248,369			247,527			235,874			—			5
Short-term borrowings		20,397			24,659			33,196			(17	)		(39	)
Accrued expenses and other liabilities		19,756			17,501			19,938			13			(1	)
Long-term debt		73,390			63,642			46,982			15			56
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			2,885			—			(100	)
Total liabilities		361,912			353,329			338,875			2			7
STOCKHOLDERS’ EQUITY
Preferred stock		452			214			430			111			5
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		9,711			9,643			9,514			1			2
Retained earnings		23,796			22,842			20,310			4			17
Cumulative other comprehensive income		1,057			938			913			13			16
Treasury stock — 39,199,710 shares, 38,271,651 shares and 61,454,942 shares		(1,984	)		(1,833	)		(2,947	)		8			(33	)
Unearned ESOP shares		(484	)		(229	)		(382	)		111			27
Total stockholders’ equity		35,442			34,469			30,732			3			15
Total liabilities and stockholders’ equity	$	397,354		$	387,798		$	369,607			2	%		8	%

-15-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions)	2004			2003			2003			2003			2003
ASSETS
Cash and due from banks	$	13,972		$	15,547		$	15,423		$	16,045		$	16,011
Federal funds sold and securities purchased under resale agreements		2,439			2,745			2,692			2,768			4,982
Securities available for sale		32,857			32,953			30,260			24,625			26,168
Mortgages held for sale		26,361			29,027			55,328			58,716			62,610
Loans held for sale		8,037			7,497			7,310			7,009			7,075
Loans		264,216			253,073			228,137			211,434			201,822
Allowance for loan losses		3,891			3,891			3,854			3,853			3,840
Net loans		260,325			249,182			224,283			207,581			197,982
Mortgage servicing rights, net		6,097			6,906			5,765			3,821			4,183
Premises and equipment, net		3,545			3,534			3,517			3,604			3,680
Goodwill		10,403			10,371			9,849			9,803			9,799
Other assets		33,318			30,036			36,323			35,611			37,117
Total assets	$	397,354		$	387,798		$	390,750		$	369,583		$	369,607
LIABILITIES
Noninterest-bearing deposits	$	78,253		$	74,387		$	77,175		$	80,943		$	75,330
Interest-bearing deposits		170,116			173,140			174,261			149,941			160,544
Total deposits		248,369			247,527			251,436			230,884			235,874
Short-term borrowings		20,397			24,659			25,589			23,883			33,196
Accrued expenses and other liabilities		19,756			17,501			18,815			20,682			19,938
Long-term debt		73,390			63,642			58,992			58,513			46,982
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			3,585			3,385			2,885
Total liabilities		361,912			353,329			358,417			337,347			338,875
STOCKHOLDERS’ EQUITY
Preferred stock		452			214			319			375			430
Common stock		2,894			2,894			2,894			2,894			2,894
Additional paid-in capital		9,711			9,643			9,532			9,536			9,514
Retained earnings		23,796			22,842			22,064			21,281			20,310
Cumulative other comprehensive income		1,057			938			572			1,185			913
Treasury stock		(1,984	)		(1,833	)		(2,785	)		(2,712	)		(2,947	)
Unearned ESOP shares		(484	)		(229	)		(263	)		(323	)		(382	)
Total stockholders’ equity		35,442			34,469			32,333			32,236			30,732
Total liabilities and stockholders’ equity	$	397,354		$	387,798		$	390,750		$	369,583		$	369,607

-16-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions)	2004			2003			2003			2003			2003
EARNING ASSETS
Federal funds sold and securities purchased under resale agreements	$	2,671		$	2,699		$	2,514		$	6,405		$	3,101
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,224			1,278			1,283			1,288			1,294
Securities of U.S. states and political subdivisions		3,338			3,141			2,442			2,063			2,040
Mortgage-backed securities:
Federal agencies		20,635			21,149			18,538			15,696			17,709
Private collateralized mortgage obligations		2,713			2,014			1,972			1,994			2,025
Total mortgage-backed securities		23,348			23,163			20,510			17,690			19,734
Other debt securities (1)		3,543			3,478			3,540			3,167			3,013
Total debt securities available for sale (1)		31,453			31,060			27,775			24,208			26,081
Mortgages held for sale		25,023			41,055			69,786			65,493			58,422
Loans held for sale		7,911			7,373			7,124			7,063			7,002
Loans:
Commercial and commercial real estate:
Commercial		47,305			47,674			46,947			47,484			47,007
Other real estate mortgage		27,801			26,691			25,635			25,661			25,385
Real estate construction		8,264			8,151			7,775			7,983			7,908
Lease financing		5,053			4,508			4,497			4,570			4,234
Total commercial and commercial real estate		88,423			87,024			84,854			85,698			84,534
Consumer:
Real estate 1-4 family first mortgage		86,375			71,402			57,817			50,292			45,193
Real estate 1-4 family junior lien mortgage		38,328			35,152			32,512			30,341			28,596
Credit card		8,338			8,013			7,683			7,456			7,400
Other revolving credit and installment		32,477			31,975			31,053			28,876			27,383
Total consumer		165,518			146,542			129,065			116,965			108,572
Foreign		2,507			2,420			2,262			2,161			1,951
Total loans (2)		256,448			235,986			216,181			204,824			195,057
Other		8,538			9,169			8,905			7,717			7,115
Total earning assets	$	332,044		$	327,342		$	332,285		$	315,710		$	296,778
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,962		$	2,744		$	2,592		$	2,536		$	2,406
Market rate and other savings		117,373			112,392			108,969			104,603			100,816
Savings certificates		19,495			19,949			20,429			21,355			22,004
Other time deposits		22,719			26,382			27,633			26,912			20,531
Deposits in foreign offices		7,171			5,992			5,643			6,278			6,337
Total interest-bearing deposits		169,720			167,459			165,266			161,684			152,094
Short-term borrowings		25,630			28,367			29,572			30,218			31,473
Long-term debt		64,416			58,814			57,960			51,677			46,662
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			3,591			3,525			3,215			2,885
Total interest-bearing liabilities		259,766			258,231			256,323			246,794			233,114
Portion of noninterest-bearing funding sources		72,278			69,111			75,962			68,916			63,664
Total funding sources	$	332,044		$	327,342		$	332,285		$	315,710		$	296,778
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,152		$	13,083		$	13,642		$	13,320		$	13,691
Goodwill		10,394			10,209			9,817			9,802			9,789
Other		31,024			34,110			39,251			36,256			34,850
Total noninterest-earning assets	$	54,570		$	57,402		$	62,710		$	59,378		$	58,330
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	73,316		$	74,941		$	83,695		$	76,934		$	71,576
Other liabilities		18,572			18,000			22,139			20,169			19,810
Preferred stockholders’ equity		(20	)		20			50			47			60
Common stockholders’ equity		34,980			33,552			32,788			31,144			30,548
Noninterest-bearing funding sources used to fund earning assets		(72,278	)		(69,111	)		(75,962	)		(68,916	)		(63,664	)
Net noninterest-bearing funding sources	$	54,570		$	57,402		$	62,710		$	59,378		$	58,330
TOTAL ASSETS	$	386,614		$	384,744		$	394,995		$	375,088		$	355,108

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

-17-

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

	Quarter ended March 31					,
(in millions)	2004			2003
Balance, beginning of period	$	34,469		$	30,319
Net income		1,767			1,492
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		(2	)		8
Change in valuation allowance related to:
Investment securities and other retained interests		106			(113	)
Derivative instruments and hedging activities		15			42
Common stock issued		404			146
Common stock repurchased		(633	)		(744	)
Preferred stock released to ESOP		83			81
Preferred stock dividends		—			(1	)
Common stock dividends		(765	)		(506	)
Other, net		(2	)		8
Balance, end of period	$	35,442		$	30,732

-18-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions)	2004			2003			2003			2003			2003
Commercial and commercial real estate:
Commercial	$	48,034		$	48,729		$	47,720		$	47,577		$	48,147
Other real estate mortgage		28,323			27,592			25,723			25,703			25,629
Real estate construction		8,259			8,209			7,777			7,853			8,032
Lease financing		5,018			4,477			4,478			4,556			4,567
Total commercial and commercial real estate		89,634			89,007			85,698			85,689			86,375
Consumer:
Real estate 1-4 family first mortgage		90,563			83,535			66,760			53,420			48,337
Real estate 1-4 family junior lien mortgage		40,281			36,629			33,601			31,514			29,329
Credit card		8,357			8,351			7,836			7,626			7,359
Other revolving credit and installment		32,755			33,100			31,919			30,943			28,361
Total consumer		171,956			161,615			140,116			123,503			113,386
Foreign		2,626			2,451			2,323			2,242			2,061
Total loans (net of unearned income)	$	264,216		$	253,073		$	228,137		$	211,434		$	201,822

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions)	2004			2003			2003			2003			2003
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	514		$	592		$	713		$	787		$	836
Other real estate mortgage		263			285			267			263			222
Real estate construction		71			56			48			61			72
Lease financing		74			73			71			85			85
Total commercial and commercial real estate		922			1,006			1,099			1,196			1,215
Consumer:
Real estate 1-4 family first mortgage		281			274			258			242			239
Real estate 1-4 family junior lien mortgage		96			87			79			69			60
Other revolving credit and installment		85			88			78			49			44
Total consumer		462			449			415			360			343
Foreign		3			3			3			5			5
Total nonaccrual loans		1,387			1,458			1,517			1,561			1,563
As a percentage of total loans		.52	%		.58	%		.66	%		.74	%		.77	%
Foreclosed assets		222			198			196			190			193
Real estate investments		2			6			6			5			5
Total nonaccrual loans and other assets	$	1,611		$	1,662		$	1,719		$	1,756		$	1,761
As a percentage of total loans		.61	%		.66	%		.75	%		.83	%		.87	%

-19-

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

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions)	2004			2003			2003			2003			2003
Balance, beginning of quarter	$	3,891		$	3,854		$	3,853		$	3,840		$	3,819
Allowances related to business combinations/other		—			37			(1	)		7			25
Provision for loan losses		404			465			426			421			411
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(111	)		(161	)		(136	)		(147	)		(153	)
Other real estate mortgage		(7	)		(10	)		(12	)		(9	)		(2	)
Real estate construction		(3	)		(3	)		(2	)		(3	)		(3	)
Lease financing		(12	)		(10	)		(12	)		(10	)		(11	)
Total commercial and commercial real estate		(133	)		(184	)		(162	)		(169	)		(169	)
Consumer:
Real estate 1-4 family first mortgage		(13	)		(15	)		(11	)		(9	)		(13	)
Real estate 1-4 family junior lien mortgage		(29	)		(23	)		(16	)		(19	)		(18	)
Credit card		(109	)		(139	)		(109	)		(116	)		(112	)
Other revolving credit and installment		(224	)		(224	)		(206	)		(198	)		(198	)
Total consumer		(375	)		(401	)		(342	)		(342	)		(341	)
Foreign		(28	)		(30	)		(29	)		(25	)		(20	)
Total loan charge-offs		(536	)		(615	)		(533	)		(536	)		(530	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		42			72			31			37			36
Other real estate mortgage		2			4			2			3			2
Real estate construction		1			1			2			4			5
Lease financing		6			2			2			2			1
Total commercial and commercial real estate		51			79			37			46			44
Consumer:
Real estate 1-4 family first mortgage		1			1			3			3			2
Real estate 1-4 family junior lien mortgage		4			1			5			4			3
Credit card		15			13			13			13			12
Other revolving credit and installment		56			51			46			50			51
Total consumer		76			66			67			70			68
Foreign		5			5			5			5			3
Total loan recoveries		132			150			109			121			115
Net loan charge-offs		(404	)		(465	)		(424	)		(415	)		(415	)
Balance, end of quarter	$	3,891		$	3,891		$	3,854		$	3,853		$	3,840
Net loan charge-offs (annualized) as a percentage of average total loans		.63	%		.78	%		.78	%		.81	%		.86	%
Allowance as a percentage of total loans		1.47	%		1.54	%		1.69	%		1.82	%		1.90	%
Allowance as a percentage of nonaccrual loans		281	%		267	%		254	%		247	%		246	%
Allowance as a percentage of nonaccrual loans and other assets		242	%		234	%		224	%		219	%		218	%

-20-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended March 31					,	%
(in millions)	2004			2003			Change
Service charges on deposit accounts	$	615		$	553			11	%
Trust and investment fees:
Trust, investment and IRA fees		375			324			16
Commissions and all other fees		160			136			18
Total trust and investment fees		535			460			16
Credit card fees		258			243			6
Other fees:
Cash network fees		43			42			2
Charges and fees on loans		211			180			17
All other		160			144			11
Total other fees		414			366			13
Mortgage banking:
Origination and other closing fees		178			276			(36	)
Servicing fees, net of amortization and provision for impairment		166			(443	)		—
Net gains (losses) on mortgage loan origination/sales activities		(80	)		637			—
All other		51			91			(44	)
Total mortgage banking		315			561			(44	)
Operating leases		209			251			(17	)
Insurance		317			266			19
Net gains on debt securities available for sale		33			18			83
Net gains (losses) from equity investments		95			(98	)		—
Net gains (losses) on sales of loans		4			(1	)		—
Net gains on dispositions of operations		1			27			(96	)
All other		301			187			61
Total	$	3,097		$	2,833			9	%

NONINTEREST EXPENSE

	Quarter ended March 31				,	%
(in millions)	2004		2003			Change
Salaries	$	1,277	$	1,141			12	%
Incentive compensation		391		447			(13	)
Employee benefits		492		419			17
Equipment		301		269			12
Net occupancy		294		296			(1	)
Operating leases		155		187			(17	)
Contract services		143		155			(8	)
Outside professional services		119		112			6
Outside data processing		99		98			1
Advertising and promotion		84		81			4
Travel and entertainment		97		85			14
Telecommunications		81		78			4
Postage		75		84			(11	)
Stationery and supplies		60		54			11
Charitable donations		7		14			(50	)
Insurance		71		50			42
Operating losses		17		57			(70	)
Security		40		42			(5	)
Core deposit intangibles		34		37			(8	)
All other		192		251			(24	)
Total	$	4,029	$	3,957			2	%

-21-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions)	2004			2003			2003			2003			2003
Service charges on deposit accounts	$	615		$	613		$	607		$	587		$	553
Trust and investment fees:
Trust, investment and IRA fees		375			350			348			322			324
Commissions and all other fees		160			154			156			148			136
Total trust and investment fees		535			504			504			470			460
Credit card fees		258			252			251			257			243
Other fees:
Cash network fees		43			44			48			46			42
Charges and fees on loans		211			191			199			186			180
All other		160			177			175			141			144
Total other fees		414			412			422			373			366
Mortgage banking:
Origination and other closing fees		178			215			393			334			276
Servicing fees, net of amortization and provision for impairment		166			312			(82	)		(741	)		(443	)
Net gains (losses) on mortgage loan origination/sales activities		(80	)		14			319			831			637
All other		51			95			143			119			91
Total mortgage banking		315			636			773			543			561
Operating leases		209			211			229			245			251
Insurance		317			264			252			289			266
Net gains (losses) on debt securities available for sale		33			(12	)		(23	)		20			18
Net gains (losses) from equity investments		95			143			58			(47	)		(98	)
Net gains (losses) on sales of loans		4			5			19			5			(1	)
Net gains on dispositions of operations		1			2			—			—			27
All other		301			371			99			215			187
Total	$	3,097		$	3,401		$	3,191		$	2,957		$	2,833

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions)	2004			2003			2003			2003			2003
Salaries	$	1,277		$	1,351		$	1,185		$	1,155		$	1,141
Incentive compensation		391			483			621			503			447
Employee benefits		492			417			374			350			419
Equipment		301			375			298			305			269
Net occupancy		294			310			283			288			296
Operating leases		155			162			175			178			187
Contract services		143			191			270			250			155
Outside professional services		119			164			122			111			112
Outside data processing		99			98			105			103			98
Advertising and promotion		84			118			98			96			81
Travel and entertainment		97			114			98			92			85
Telecommunications		81			87			92			86			78
Postage		75			71			94			87			84
Stationery and supplies		60			68			62			57			54
Charitable donations		7			21			197			5			14
Insurance		71			31			48			69			50
Operating losses		17			44			29			64			57
Security		40			38			41			42			42
Core deposit intangibles		34			35			35			36			37
All other		192			322			348			281			251
Total	$	4,029		$	4,500		$	4,575		$	4,158		$	3,957

-22-

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

	Quarter ended March 31																	,
	2004									2003
							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	$	2,671			.95	%	$	6		$	3,101			1.32	%	$	10
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,224			4.16			12			1,294			5.31			16
Securities of U.S. states and political subdivisions		3,338			7.92			62			2,040			8.76			42
Mortgage-backed securities:
Federal agencies		20,635			6.01			298			17,709			7.82			321
Private collateralized mortgage obligations		2,713			5.29			35			2,025			7.27			35
Total mortgage-backed securities		23,348			5.93			333			19,734			7.76			356
Other debt securities (4)		3,543			7.60			60			3,013			7.56			56
Total debt securities available for sale (4)		31,453			6.24			467			26,081			7.69			470
Mortgages held for sale (3)		25,023			5.34			334			58,422			5.57			814
Loans held for sale (3)		7,911			3.19			63			7,002			3.88			67
Loans:
Commercial		47,305			5.87			690			47,007			6.26			727
Real estate 1-4 family first mortgage		86,375			5.34			1,151			45,193			5.96			671
Other real estate mortgage		27,801			5.19			359			25,385			5.68			357
Real estate construction		8,264			4.94			101			7,908			5.27			103
Consumer:
Real estate 1-4 family junior lien mortgage		38,328			5.10			486			28,596			6.19			436
Credit card		8,338			11.92			249			7,400			12.44			230
Other revolving credit and installment		32,477			9.03			730			27,383			9.69			656
Total consumer		79,143			7.43			1,465			63,379			8.43			1,322
Lease financing		5,053			6.51			82			4,234			6.15			64
Foreign		2,507			17.71			111			1,951			18.60			91
Total loans (5)		256,448			6.20			3,959			195,057			6.90			3,335
Other		8,538			2.50			53			7,115			2.92			52
Total earning assets	$	332,044			5.92			4,882		$	296,778			6.48			4,748
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,962			.32			2		$	2,406			.36			2
Market rate and other savings		117,373			.61			179			100,816			.75			187
Savings certificates		19,495			2.25			109			22,004			2.76			150
Other time deposits		22,719			1.08			61			20,531			1.36			69
Deposits in foreign offices		7,171			1.04			19			6,337			1.22			19
Total interest-bearing deposits		169,720			.88			370			152,094			1.14			427
Short-term borrowings		25,630			.99			63			31,473			1.22			95
Long-term debt		64,416			2.33			375			46,662			2.84			330
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			—			2,885			3.83			27
Total interest-bearing liabilities		259,766			1.25			808			233,114			1.52			879
Portion of noninterest-bearing funding sources		72,278			—			—			63,664			—			—
Total funding sources	$	332,044			.98			808		$	296,778			1.21			879
Net interest margin and net interest income on a taxable-equivalent basis(6)					4.94	%	$	4,074						5.27	%	$	3,869
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,152								$	13,691
Goodwill		10,394									9,789
Other		31,024									34,850
Total noninterest-earning assets	$	54,570								$	58,330
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	73,316								$	71,576
Other liabilities		18,572									19,810
Preferred stockholders’ equity		(20	)								60
Common stockholders’ equity		34,980									30,548
Noninterest-bearing funding sources used to fund earning assets		(72,278	)								(63,664	)
Net noninterest-bearing funding sources	$	54,570								$	58,330
TOTAL ASSETS	$	386,614								$	355,108

(1)	Our average prime rate was 4.00% and 4.25% for the quarters ended March 31, 2004 and 2003, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.12% and 1.33% 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.

-23-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(income/expense in millions, average balances in billions)	2004			2003			2003			2003			2003
COMMUNITY BANKING
Net interest income	$	2,846		$	2,864		$	2,990		$	2,865		$	2,777
Provision for loan losses		214			236			213			227			217
Noninterest income		2,140			2,544			2,379			2,186			2,109
Noninterest expense		2,994			3,385			3,603			3,200			3,026
Income before income tax expense		1,778			1,787			1,553			1,624			1,643
Income tax expense		611			605			488			565			585
Net income	$	1,167		$	1,182		$	1,065		$	1,059		$	1,058
Average loans	$	180.3		$	162.7		$	146.0		$	135.7		$	128.3
Average assets		277.4			278.5			290.2			269.5			255.4
Average core deposits		188.3			186.3			191.8			184.1			176.3
WHOLESALE BANKING
Net interest income	$	562		$	561		$	556		$	560		$	551
Provision for loan losses		23			23			54			46			53
Noninterest income		828			750			707			656			652
Noninterest expense		669			694			629			636			620
Income before income tax expense		698			594			580			534			530
Income tax expense		250			212			208			189			183
Net income	$	448		$	382		$	372		$	345		$	347
Average loans	$	50.3		$	49.8		$	49.0		$	49.8		$	49.3
Average assets		75.7			74.8			75.7			78.4			74.1
Average core deposits		24.7			23.6			23.8			21.2			20.4
WELLS FARGO FINANCIAL
Net interest income	$	644		$	638		$	599		$	550		$	523
Provision for loan losses		167			176			159			148			141
Noninterest income		102			96			97			95			91
Noninterest expense		366			370			343			321			308
Income before income tax expense		213			188			194			176			165
Income tax expense		77			69			73			66			63
Net income	$	136		$	119		$	121		$	110		$	102
Average loans	$	25.8		$	23.5		$	21.2		$	19.3		$	17.5
Average assets		27.4			25.3			22.9			21.1			19.4
Average core deposits		.1			.1			.1			.1			.1
OTHER (1)
Net interest income	$	(2	)	$	(19	)	$	(3	)	$	(2	)	$	(2	)
Provision for loan losses		—			30			—			—			—
Noninterest income		27			11			8			20			(19	)
Noninterest expense		—			51			—			1			3
Income (loss) before income tax expense (benefit)		25			(89	)		5			17			(24	)
Income tax expense (benefit)		9			(30	)		2			6			(9	)
Net income (loss)	$	16		$	(59	)	$	3		$	11		$	(15	)
Average loans	$	—		$	—		$	—		$	—		$	—
Average assets		6.1			6.1			6.2			6.1			6.2
Average core deposits		—			—			—			—			—
CONSOLIDATED COMPANY
Net interest income	$	4,050		$	4,044		$	4,142		$	3,973		$	3,849
Provision for loan losses		404			465			426			421			411
Noninterest income		3,097			3,401			3,191			2,957			2,833
Noninterest expense		4,029			4,500			4,575			4,158			3,957
Income before income tax expense		2,714			2,480			2,332			2,351			2,314
Income tax expense		947			856			771			826			822
Net income	$	1,767		$	1,624		$	1,561		$	1,525		$	1,492
Average loans	$	256.4		$	236.0		$	216.2		$	204.8		$	195.1
Average assets		386.6			384.7			395.0			375.1			355.1
Average core deposits		213.1			210.0			215.7			205.4			196.8

(1) Other consists of Corporate level investment activities and balances and unallocated goodwill balances held at the enterprise level. This also includes separately identified transactions recorded at the enterprise level for management reporting. The other income and expense 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 other income and expense items for all other quarters presented principally relate to Corporate level equity investment activities. Average assets consist of unallocated goodwill held at the enterprise level.

-24-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING(1)

	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in millions)	2004			2003			2003			2003			2003
Mortgage Servicing Rights:
Balance, beginning of quarter	$	8,848		$	7,589		$	6,375		$	6,652		$	6,677
Originations		338			674			1,377			892			603
Purchases		268			410			874			462			394
Amortization		(511	)		(459	)		(572	)		(926	)		(803	)
Write-down		(169	)		—			(492	)		(535	)		(311	)
Other (includes changes in mortgage servicing rights due to hedging)		(504	)		634			27			(170	)		92
Balance before valuation allowance, end of quarter		8,270			8,848			7,589			6,375			6,652
Less: Valuation allowance		2,173			1,942			1,824			2,554			2,469
Balance, end of quarter	$	6,097		$	6,906		$	5,765		$	3,821		$	4,183
Mortgage Servicing Rights Valuation Allowance:
Balance, beginning of quarter	$	1,942		$	1,824		$	2,554		$	2,469		$	2,188
Provision for mortgage servicing rights in excess of fair value		400			118			—			620			592
Reversal of provision for mortgage servicing rights in excess of fair value		—			—			(238	)		—			—
Write-down of mortgage servicing rights		(169	)		—			(492	)		(535	)		(311	)
Balance, end of quarter	$	2,173		$	1,942		$	1,824		$	2,554		$	2,469
Ratio of mortgage servicing rights to related mortgage loans serviced for others		1.00	%		1.15	%		1.03	%		.73	%		.84	%

	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in billions)	2004			2003			2003			2003			2003
Managed Servicing Portfolio:
Loans serviced for others	$	609		$	598		$	560		$	522		$	499
Owned loans serviced (portfolio & held for sale)		116			112			121			111			110
Total owned servicing		725			710			681			633			609
Sub-servicing		28			21			18			23			29
Total	$	753		$	731		$	699		$	656		$	638
Weighted-average note rate (owned servicing only)		5.84	%		5.90	%		5.98	%		6.23	%		6.49	%

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

-25-

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

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in billions)	2004			2003			2003			2003			2003
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	119		$	71		$	135		$	204		$	157
Percentage of refinances		56	%		45	%		59	%		77	%		77	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	72		$	46		$	62		$	120		$	89

	Quarter ended
	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,	Mar. 31		,
(in billions)	2004			2003			2003			2003			2003
Residential Real Estate Originations:(1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	30		$	31		$	80		$	73		$	51
Correspondent/Wholesale		25			30			71			54			46
Home equity loans and lines		8			8			8			7			5
Wells Fargo Financial		2			2			2			1			1
Total	$	65		$	71		$	161		$	135		$	103
Year-to-date	$	65		$	470		$	399		$	238		$	103

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