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

Exhibit 99.1

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

Tuesday, July 20, 2004
WELLS FARGO REPORTS DOUBLE-DIGIT EARNINGS PER SHARE
AND NET INCOME GROWTH

Second Quarter 2004 Highlights:

• Diluted earnings per share of $1.00, up 11 percent from prior year’s $.90

• Net income of $1.71 billion, up 12 percent from prior year’s $1.53 billion

• Return on equity of 19.6 percent

• Revenue up 7 percent from prior year

• Strong balance sheet growth

¡	Average loans up 30 percent from prior year
¡	Average core deposits up 9 percent from prior year
¡	Average commercial and commercial real estate loans up 6 percent from prior year and up 11 percent (annualized) linked-quarter

• Improved asset quality

¡	Net charge-offs down $25 million, or 6 percent, from prior year
¡	Nonperforming assets down $140 million, or 8 percent, from prior year

• Efficiency ratio improved to 58.6 percent from 60.0 percent a year ago

Selected Financial Information	Second Quarter							Six months ended June 30,
					%							%
Earnings	2004		2003		Change			2004		2003		Change
Diluted earning per share	$	1.00	$	.90		11		$	2.03	$	1.78		14
Net income (in millions)		1,714		1,525		12			3,481		3,017		15
Asset Quality
Net charge-offs (in millions)		390		415		(6	)		794		829		(4	)
Nonperforming assets as % of total loans		.60		.83		(28	)		.60		.83		(28	)
Other
Revenue (in millions)	$	7,426	$	6,930		7		$	14,573	$	13,610		7
Average loans (in billions)		266.2		204.8		30			261.3		200.0		31
Average core deposits (in billions)		224.9		205.4		9			219.0		201.1		9

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SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $1.00 for second quarter 2004, compared with $.90 in second quarter 2003, up 11 percent. Net income was $1.71 billion, up 12 percent from $1.53 billion in second quarter 2003. For the first half of 2004, net income was $3.48 billion, up 15 percent from the first half of 2003, and diluted earnings per share were $2.03, up 14 percent from the first half of 2003.

      “Thanks to the outstanding efforts of our 146,000 talented team members this was another strong quarter with double-digit growth in earnings per share, good growth in revenue, loans, deposits and continued improvement in credit quality,” said Chairman and CEO Dick Kovacevich. “These results were achieved despite a reduction of $.14 in earnings per share from various interest rate-related balance sheet repositioning actions (described below in the Financial Performance section) which were designed to increase earning asset yields and reduce funding costs in the future. We’ve made significant investments in our people, systems and distribution network to earn even more of our customers’ business and help continue our earnings momentum for the ‘Next Stage’ of our growth. The last three years we’ve invested more than $1 billion in our people alone. Since 2000, we’ve added about 8,600 sales people in our businesses, up 30 percent. Already this year, we’ve opened more than 50 new banking stores, a rate unprecedented in our Company’s history. We now have more than 6,000 total stores across North America, another Wells Fargo milestone.

      These investments are paying off in significantly higher productivity and our customers are giving us more of their business, reflected in higher loan balances, deposits and cross-sell. For example, core product sales in Regional Banking were up almost 16 percent compared with second quarter last year. Our sales of product packs to our new banking households were up 25 percent so far this year compared with the same period last year. Our average banking household now has 4.4 products with us, which we believe is among the highest, if not the highest, in our industry. This includes customers who have not been with us for a full year, including the 39,000 who joined us from the recently-acquired Pacific Northwest Bancorp. Our average commercial/corporate customer has 5 products. Four of every ten of our mortgages originated in California were from our banking customers as were a third of our new investment brokerage sales across our 23 banking states.”

Financial Performance

      Diluted earnings per share were $1.00 for second quarter 2004, up 11 percent from $.90 in second quarter 2003, the eleventh consecutive quarter of double-digit earnings per share growth. Second quarter results included $.01 per share of market-sensitive income (net gains and losses on debt securities available for sale and equity investments) compared with $.05 in first quarter. “We’re very pleased to report another quarter of outstanding and broad-based results,” said Howard Atkins, Chief Financial Officer.

      Wells Fargo has historically had one of the highest earning asset yields and one of the lowest average costs of debt among large U.S. banks. Taking advantage of market opportunities available during the second quarter, the Company took a number of actions to further increase the yield on its earning assets and to reduce the cost of its long-term funding. “On the debt side of our balance sheet, the Company repurchased $2.4 billion of long-term debt with a weighted-average coupon of 6.20 percent,” said Atkins. As previously disclosed, this buyback increased second quarter noninterest expense and reduced pre-tax earnings by $176 million or $.06 per share after-tax. In addition, the Company recorded losses of

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$222 million, or $.08 per share after-tax, connected with the sale of $14 billion of securities and adjustable rate mortgages (ARMs) with yields below 4 percent and replaced most of those assets with newer securities yielding close to 6 percent and with newly originated, higher-yielding ARMs. “After lengthening the duration of our funding at lower interest rates between mid 2003 and early 2004 and after continued strong growth in core checking account balances, the net effect of these actions was to improve asset yields and to reduce long-term debt cost without adding interest rate risk,” said Atkins. “Taken together, the repositioning actions had a $.14 earnings per share after-tax impact. To the extent markets remain as volatile as they were in the second quarter, we may take advantage of additional opportunities to further improve asset yields or reduce long-term funding costs in the future.”

Revenue

      Revenue of $7.4 billion for second quarter 2004 grew $496 million, or 7 percent, from a year ago. Revenue was reduced by $222 million, or 3 percent, in second quarter 2004 by the losses taken on the asset repositioning actions in the quarter. “Revenue growth was broad-based with strong results from most of our businesses, including consumer deposits and loans, payment processing, insurance brokerage, trust and investments including private client services, small business, corporate banking, mortgage banking and consumer finance,” said Atkins. On a linked-quarter basis, revenue increased $279 million, or 16 percent (annualized).

Loans

      Average loans of $266.2 billion in second quarter 2004 increased $61.4 billion, or 30 percent, from second quarter 2003, and $9.8 billion, or 15 percent (annualized), on a linked-quarter basis. Average commercial and commercial real estate loans increased $5.1 billion, or 6 percent, from second quarter 2003, and $2.3 billion, or 11 percent (annualized), on a linked-quarter basis. “Commercial loan growth this quarter was broad-based across virtually all of our segments, including small business, middle market, commercial real estate, leasing, trade finance, and asset-based lending, and included the first meaningful increase in middle-market loan demand we’ve seen in nine quarters,” said Atkins.

      “In addition to commercial loan growth, we also saw continued strong demand for consumer credit,” said Atkins. Average consumer loans, including home equity and home mortgage, credit card and revolving credit and installment loan products, increased $56 billion, or 48 percent, from second quarter 2003, and $7.3 billion, or 18 percent (annualized), on a linked-quarter basis.

Deposits

      Average core deposits of $224.9 billion for second quarter 2004 grew $19.5 billion, or 9 percent, from second quarter 2003, and increased $11.8 billion, or 22 percent (annualized), on a linked-quarter basis. Average mortgage escrow deposits were $16.8 billion for second quarter 2004, down $4.0 billion from second quarter 2003 and up $4.3 billion from first quarter 2004. Excluding mortgage escrow deposits, total average core deposits grew $23.5 billion, or 13 percent, from second quarter 2003 and $7.5 billion, or 15 percent (annualized), on a linked-quarter basis.

      Average consumer checking account balances grew 13 percent from second quarter 2003 and 21 percent (annualized) on a linked-quarter basis, reflecting a 4.7 percent net increase

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in consumer checking accounts from a year ago and higher average balances. “We continued to experience exceptional growth in basic core deposits,” said Atkins.

Net Interest Income

      Net interest income in second quarter 2004 increased 6 percent from second quarter 2003 on 12 percent earning asset growth, partially offset by a decline in the net interest margin. On a linked-quarter basis, net interest income was up $176 million, or 17 percent (annualized). This increase was driven by a $11.8 billion increase in average mortgage loans held for sale and a $9.8 billion increase in average total loans, which grew 30 percent year-over-year and 15 percent (annualized) on a linked-quarter basis. Net interest margin was 4.83 percent, down 11 basis points from first quarter 2004, primarily due to the substantial growth in earning assets during the quarter, including the mortgage warehouse and renewed growth in commercial and commercial real estate loans.

Noninterest Income

      Noninterest income in second quarter 2004 increased $243 million, or 8 percent, from second quarter 2003. Second quarter 2004 noninterest income was reduced by $222 million of losses taken to reposition the balance sheet to further increase earning asset yields. “The growth in fee income reflected strength in trust and investment fees, deposit service charges, credit card fees, loan fees and insurance,” said Atkins.

      Noninterest income increased $103 million on a linked-quarter basis, including the $222 million of balance sheet repositioning losses ($61 million in bond losses and $161 million in losses related to the sale of lowest-yielding ARMs). Mortgage banking noninterest income was up $178 million, and included a mortgage servicing rights valuation allowance release, net of hedge losses, of $375 million.

Noninterest Expense

      Noninterest expense was $4.4 billion in second quarter 2004, compared with $4.2 billion in second quarter 2003. Almost all of the year-over-year increase was due to the $176 million in debt repurchase cost incurred in the second quarter 2004. On a linked-quarter basis, noninterest expense increased $324 million primarily reflecting the debt repurchase cost and higher Home Mortgage production and temporary staffing costs. The efficiency ratio was 58.6 percent in second quarter 2004, compared with 60.0 percent in second quarter 2003 and 56.4 percent in first quarter 2004. The reduction in revenue and increase in expenses from the balance sheet repositioning actions taken during the quarter accounted for 400 basis points of the 58.6 percent efficiency ratio this quarter.

Credit Quality

      “Credit quality continued to exceed our expectations,” said Chief Credit Officer Dave Munio. Second quarter losses were $390 million (.59 percent of loans outstanding annualized), down from the prior quarter’s $404 million (.63 percent) and $415 million (.81 percent) one year ago. “Commercial portfolios performed well, at the low end of expected loss rates,” said Munio. “Consumer losses have been consistently lower than expectations due to strong real estate and vehicle collateral values, modest year-over-year declines in new bankruptcy filings and higher than expected turnover in consumer portfolios. As we have said for a number of quarters, we may see somewhat greater nonperforming loans and higher losses and loss rates in

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some of our high-growth consumer portfolios, including home equity and consumer finance, as these portfolios season over time.”

      The provision expense of $440 million for second quarter 2004 exceeded net charge-offs by $50 million and the allowance for loan losses increased from $3.89 billion at March 31, 2004 to $3.94 billion at June 30, 2004. “We remain very comfortable with the performance of our credit, as exhibited by our current period losses,” said Munio. “The increase in our allowance was necessary given the sustained growth of our consumer portfolio, particularly related to Wells Fargo Financial.”

      Nonperforming assets were $1.6 billion, or .60 percent of total loans, at June 30, 2004, flat on a linked-quarter basis, down 8 percent from a year ago and at the lowest dollar level since second quarter 2001.

Business Segment Performance

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

	Second Quarter							Six months ended June 30,
					%							%
(in millions)	2004		2003		Change			2004		2003		Change
Community Banking	$	1,316	$	1,059		24		$	2,483	$	2,117		17
Wholesale Banking		385		345		12			833		693		20
Wells Fargo Financial		105		110		(5	)		241		212		14

      More financial information about the business segments is on pages 25 and 26.

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

Selected Financial Information	Second Quarter							Six months ended June 30,
					%							%
(in millions)	2004		2003		Change			2004		2003		Change
Total revenue	$	5,348	$	5,051		6		$	10,334	$	9,935		4
Provision for loan losses		213		227		(6	)		427		442		(3	)
Noninterest expense		3,126		3,200		(2	)		6,120		6,226		(2	)
Net income		1,316		1,059		24			2,483		2,117		17
Average loans (in billions)		185.9		135.7		37			183.1		132.0		39
Average assets (in billions)		298.8		269.5		11			288.1		262.5		10

• Record core product sales of 3.45 million, up 16 percent from prior year

• Banker productivity of 4.9 core sales per day

• Average core deposits (excluding mortgage escrows) up 12 percent from prior year and 14 percent (annualized) from prior quarter

• Average loans up 37 percent from prior year

• Average business loans up 9 percent from prior year

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• Mortgage originations of $96 billion, up $31 billion from prior quarter

• Net consumer checking accounts up 4.7 percent from prior year

• 680,000 business debit cards outstanding, up 34 percent from prior year

• Internet:

¡	5.6 million active online customers, up 30 percent from prior year
¡	1.9 million bill pay customers, up 36 percent from prior year
¡	485,000 active online small business customers, up 37 percent from prior year
¡	Over 1 million online statements now distributed monthly
¡	wellsfargo.com won the “fastest bank on the web” award from Keynote, an internet performance measurement company

      Community Banking reported net income of $1,316 million in second quarter 2004, compared with $1,059 million for the same period of 2003, up 24 percent. Second quarter revenue grew 6 percent compared with the same period of 2003. Net interest income increased by $124 million, compared with second quarter 2003, primarily due to growth in consumer and 1-4 family loans and deposits, partially offset by a decrease in mortgages held for sale and a decline in the net interest margin. Noninterest income was up $173 million in second quarter 2004, compared with the same period last year. Noninterest expense decreased by $74 million in second quarter 2004, or 2 percent, compared with the same period of 2003, due primarily to a decline in mortgage origination volumes.

      “Our experienced and dedicated sales team continued to achieve record sales,” said John Stumpf, Group EVP, Community Banking. “Core product sales were 3.45 million for the second quarter, up 16 percent from the same period last year. The number of retail bankers increased by 1,600, up 17 percent from last June, while we maintained our strong sales efficiency at 4.9 core sales per platform banker per day. We’ve begun to see some growth in business lending (commercial and commercial real estate loans). Total business loans increased 9 percent from a year ago and loans to small businesses with annual revenues of $2 million or less increased 17 percent compared with the same period a year ago. Our business card programs are growing quickly with 344,000 credit cards and 680,000 debit cards outstanding at quarter end, increases of 19 percent and 34 percent respectively, compared with a year ago.”

      “Residential real estate originations for the quarter were $96 billion, up $31 billion from the first quarter,” said Mark Oman, Group EVP, Home and Consumer Finance. “With higher interest rates during the quarter, application activity dropped to $100 billion. Reflecting the decline in applications, the mortgage application pipeline ended the quarter at $57 billion, down $15 billion from March 31, 2004, although purchase mortgage volume remained at or above expectations.”

      The owned servicing portfolio grew to $749 billion, up $116 billion, or 18 percent, from the same period last year. The weighted-average note rate declined to 5.75 percent. The carrying value of the mortgage servicing rights at June 30, 2004 was $8.5 billion, 1.37 percent of loans serviced for others, compared with $6.9 billion, or 1.15 percent of loans serviced for others, at year-end 2003.

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

Selected Financial Information	Second Quarter							Six months ended June 30,
					%							%
(in millions)	2004		2003		Change			2004		2003		Change
Total revenue	$	1,279	$	1,216		5		$	2,669	$	2,420		10
Provision for loan losses		18		46		(61	)		41		100		(59	)
Noninterest expense		663		636		4			1,332		1,256		6
Net income		385		345		12			833		693		20
Average loans (in billions)		52.1		49.8		5			51.2		49.6		3
Average assets (in billions)		75.8		78.4		(3	)		75.8		76.3		(1	)

• Net income up 12 percent from prior year

• Announced acquisition of $34 billion in assets under management from Strong Financial

• Average loans up 14 percent (annualized) from prior quarter

      Wholesale Banking reported net income of $385 million in second quarter 2004, compared with $345 million in second quarter 2003, an increase of 12 percent. Net income was $833 million for the first six months of 2004, compared with $693 million for the first six months of 2003, an increase of 20 percent. Revenue increased 5 percent to $1,279 million and 10 percent to $2,669 million in the second quarter 2004 and first six months of 2004, respectively. Second quarter 2004 expenses were up 4 percent from the prior year and down 1 percent (unannualized) on a linked-quarter basis. The 2004 results have particularly benefited from strength in asset-based lending and capital markets-related businesses.

      “We’re pleased to report a double-digit increase for earnings compared with the same period a year ago,” said Dave Hoyt, Group EVP, Wholesale Banking. “We’re particularly encouraged by our $1.8 billion increase in average commercial loans for the quarter, an increase of 14 percent (annualized) from the prior quarter, accelerating from the 5 percent year-over-year growth. Although this is the first quarter in three years that we have seen significant loan growth, the breadth and depth of our financial solutions for clients has enabled us to generate strong revenue and earnings growth during the challenging economic conditions of the past few years.”

      One of Wells Fargo’s ten strategic initiatives is to grow the investment businesses. During the quarter, the Company announced the purchase of $27 billion in mutual fund assets and $7 billion in institutional investment accounts from Strong Financial. “We’re very excited about expanding our investment products and capabilities with Strong,” said Hoyt. “Team members from Wells Fargo and Strong have put a lot of hard work into making the acquisition a success and we believe this is a great strategic fit of investment talent, new distribution channels and outstanding products.” The asset management businesses of Strong Financial include 70 mutual funds and serve over 870,000 active accounts. The acquisition is expected to be completed by the first quarter of 2005.

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      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	Second Quarter							Six months ended June 30,
					%							%
(in millions)	2004		2003		Change			2004		2003		Change
Total revenue	$	764	$	645		18		$	1,510	$	1,259		20
Provision for loan losses		209		148		41			376		289		30
Noninterest expense		387		321		21			753		629		20
Net income		105		110		(5	)		241		212		14
Average loans (in billions)		28.2		19.3		46			27.0		18.4		47
Average assets (in billions)		29.8		21.1		41			28.6		20.3		41

• Assets of $31.3 billion at June 30, 2004, up 9 percent (unannualized) from March 31, 2004 and 42 percent from June 30, 2003

¡	Real estate secured receivables grew 13 percent (unannualized), or $1.2 billion, linked-quarter to $10.1 billion
¡	Auto finance receivables grew 12 percent (unannualized), or $.8 billion, linked- quarter to $7.3 billion

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

      “Our growth validates our business model and shows that customers respond to our commitment to helping them succeed financially by rewarding us with their business,” said Tom Shippee, President and CEO of Wells Fargo Financial. “With year-to-date receivables growth of $4.8 billion at the end of second quarter, we’ve surpassed $29.4 billion in receivables outstanding, an increase of nearly $9.4 billion, or 46 percent, over the last 12 months. Reflecting continued growth in receivables, we increased our loan loss provision by $50 million above net charge-offs, which reduced net income by $32 million after-tax.

Recorded Message

      A recorded message reviewing Wells Fargo’s results will be available at 5:30 a.m. Pacific Time through July 23, 2004. Dial 800-642-1687 (domestic) or 706-645-9291 (international). Access code 8393182. The call is also available on the internet 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. 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 the balance sheet repositioning items, the possibility of future actions to improve asset yields or reduce long-term funding costs, various statements about future credit losses and credit quality, and the expected timeframe for completion of the Strong Financial asset acquisition.

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

      There are several factors—many beyond the Company’s control—that could cause results to differ significantly from the Company’s expectations. Factors such as credit, market, operational, liquidity, interest rate and other risks are described in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2004, and 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 March 31, 2004 Form 10-Q.

      Any factor described in this news release or in any document referred to in this news release could, by itself or together with one or more other factors, adversely affect the Company’s business, earnings and/or financial condition.

Wells Fargo & Company is a diversified financial services company with $420 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 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 at www.wellsfargo.com

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Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

	Quarter ended June 30					,	%			Six months ended June 30					,	%
(in millions, except per share amounts)	2004			2003			Change			2004			2003			Change
For the Period
Net income	$	1,714		$	1,525			12	%	$	3,481		$	3,017			15	%
Diluted earnings per common share		1.00			.90			11			2.03			1.78			14
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.68	%		1.63	%		3			1.76	%		1.67	%		5
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.57			19.62			—			19.94			19.71			1
Efficiency ratio (1)		58.6			60.0			(2	)		57.5			59.6			(4	)
Total revenue	$	7,426		$	6,930			7		$	14,573		$	13,610			7
Dividends declared per common share		.45			.30			50			.90			.60			50
Average common shares outstanding		1,688.1			1,675.7			1			1,693.7			1,678.5			1
Diluted average common shares outstanding		1,708.3			1,690.6			1			1,714.8			1,692.1			1
Average loans	$	266,231		$	204,824			30		$	261,340		$	199,968			31
Average assets		410,544			375,088			9			398,579			365,153			9
Average core deposits (2)		224,920			205,428			9			219,033			201,140			9
Net interest margin		4.83	%		5.09	%		(5	)		4.89	%		5.18	%		(6	)
At Period End
Securities available for sale	$	36,771		$	24,625			49		$	36,771		$	24,625			49
Loans		269,731			211,434			28			269,731			211,434			28
Allowance for loan losses		3,940			3,853			2			3,940			3,853			2
Goodwill		10,430			9,803			6			10,430			9,803			6
Assets		420,305			369,583			14			420,305			369,583			14
Core deposits		222,166			210,722			5			222,166			210,722			5
Common stockholders’ equity		35,505			32,184			10			35,505			32,184			10
Stockholders’ equity		35,478			32,236			10			35,478			32,236			10
Capital ratios
Common stockholders’ equity to assets		8.45	%		8.71	%		(3	)		8.45	%		8.71	%		(3	)
Stockholders’ equity to assets		8.44			8.72			(3	)		8.44			8.72			(3	)
Risk-based capital (3)
Tier 1 capital		8.20			7.98			3			8.20			7.98			3
Total capital		11.80			11.50			3			11.80			11.50			3
Tier 1 leverage (3)		6.84			6.58			4			6.84			6.58			4
Book value per common share	$	21.03		$	19.18			10		$	21.03		$	19.18			10
Team members (active, full-time equivalent)		142,600			135,500			5			142,600			135,500			5
Common Stock Price
High	$	59.72		$	52.80			13		$	59.72		$	52.80			13
Low		54.32			45.01			21			54.32			43.27			26
Period end		57.23			50.40			14			57.23			50.40			14

(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 June 30, 2004 ratios are preliminary.

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Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions, except per share amounts)	2004			2004			2003			2003			2003
For the Quarter
Net income	$	1,714		$	1,767		$	1,624		$	1,561		$	1,525
Diluted earnings per common share		1.00			1.03			.95			.92			.90
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.68	%		1.84	%		1.67	%		1.57	%		1.63	%
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.57			20.31			19.20			18.88			19.62
Efficiency ratio (1)		58.6			56.4			60.5			62.4			60.0
Total revenue	$	7,426		$	7,147		$	7,445		$	7,333		$	6,930
Dividends declared per common share		.45			.45			.45			.45			.30
Average common shares outstanding		1,688.1			1,699.3			1,690.2			1,677.2			1,675.7
Diluted average common shares outstanding		1,708.3			1,721.2			1,712.6			1,693.9			1,690.6
Average loans	$	266,231		$	256,448		$	235,986		$	216,181		$	204,824
Average assets		410,544			386,614			384,744			394,995			375,088
Average core deposits (2)		224,920			213,146			210,026			215,685			205,428
Net interest margin		4.83	%		4.94	%		4.97	%		5.01	%		5.09	%
At Quarter End
Securities available for sale	$	36,771		$	32,857		$	32,953		$	30,260		$	24,625
Loans		269,731			264,216			253,073			228,137			211,434
Allowance for loan losses		3,940			3,891			3,891			3,854			3,853
Goodwill		10,430			10,403			10,371			9,849			9,803
Assets		420,305			397,354			387,798			390,750			369,583
Core deposits		222,166			220,105			211,271			209,422			210,722
Common stockholders’ equity		35,505			35,474			34,484			32,277			32,184
Stockholders’ equity		35,478			35,442			34,469			32,333			32,236
Capital ratios
Common stockholders’ equity to assets		8.45	%		8.93	%		8.89	%		8.26	%		8.71	%
Stockholders’ equity to assets		8.44			8.92			8.89			8.27			8.72
Risk-based capital (3)
Tier 1 capital		8.20			8.48			8.42			8.14			7.98
Total capital		11.80			12.18			12.21			11.62			11.50
Tier 1 leverage (3)		6.84			7.13			6.93			6.43			6.58
Book value per common share	$	21.03		$	20.90		$	20.31		$	19.25		$	19.18
Team members (active, full-time equivalent)		142,600			139,900			140,000			139,200			135,500
Common Stock Price
High	$	59.72		$	58.98		$	59.18		$	53.71		$	52.80
Low		54.32			55.97			51.68			48.90			45.01
Period end		57.23			56.67			58.89			51.50			50.40

(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 June 30, 2004 ratios are preliminary.

-12-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended June 30					,	%			Six months ended June 30					,	%
(in millions, except per share amounts)	2004			2003			Change			2004			2003			Change
INTEREST INCOME
Securities available for sale	$	457		$	435			5	%	$	902		$	888			2	%
Mortgages held for sale		470			864			(46	)		804			1,678			(52	)
Loans held for sale		66			67			(1	)		129			134			(4	)
Loans		4,011			3,409			18			7,968			6,741			18
Other interest income		65			80			(19	)		124			141			(12	)
Total interest income		5,069			4,855			4			9,927			9,582			4
INTEREST EXPENSE
Deposits		394			425			(7	)		764			852			(10	)
Short-term borrowings		59			87			(32	)		122			182			(33	)
Long-term debt		390			341			14			765			671			14
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			29			(100	)		—			56			(100	)
Total interest expense		843			882			(4	)		1,651			1,761			(6	)
NET INTEREST INCOME		4,226			3,973			6			8,276			7,821			6
Provision for loan losses		440			421			5			844			831			2
Net interest income after provision for loan losses		3,786			3,552			7			7,432			6,990			6
NONINTEREST INCOME
Service charges on deposit accounts		637			587			9			1,252			1,140			10
Trust and investment fees		530			470			13			1,065			929			15
Credit card fees		279			257			9			537			501			7
Other fees		440			373			18			854			739			16
Mortgage banking		493			543			(9	)		808			1,104			(27	)
Operating leases		209			245			(15	)		418			496			(16	)
Insurance		347			289			20			664			556			19
Net gains (losses) on debt securities available for sale		(61	)		20			—			(28	)		38			—
Net gains (losses) from equity investments		81			(47	)		—			176			(145	)		—
Other		245			220			11			551			431			28
Total noninterest income		3,200			2,957			8			6,297			5,789			9
NONINTEREST EXPENSE
Salaries		1,295			1,155			12			2,572			2,296			12
Incentive compensation		441			503			(12	)		832			950			(12	)
Employee benefits		391			350			12			883			769			15
Equipment		271			305			(11	)		572			573			—
Net occupancy		304			288			6			598			585			2
Operating leases		156			178			(12	)		311			365			(15	)
Other		1,495			1,379			8			2,614			2,576			1
Total noninterest expense		4,353			4,158			5			8,382			8,114			3
INCOME BEFORE INCOME TAX EXPENSE		2,633			2,351			12			5,347			4,665			15
Income tax expense		919			826			11			1,866			1,648			13
NET INCOME	$	1,714		$	1,525			12	%	$	3,481		$	3,017			15	%
NET INCOME APPLICABLE TO COMMON STOCK	$	1,714		$	1,524			12	%	$	3,481		$	3,015			15	%
EARNINGS PER COMMON SHARE
Earnings per common share	$	1.02		$	.91			12	%	$	2.06		$	1.80			14	%
Diluted earnings per common share	$	1.00		$	.90			11	%	$	2.03		$	1.78			14	%
DIVIDENDS DECLARED PER COMMON SHARE	$	.45		$	.30			50	%	$	.90		$	.60			50	%
Average common shares outstanding		1,688.1			1,675.7			1	%		1,693.7			1,678.5			1	%
Diluted average common shares outstanding		1,708.3			1,690.6			1	%		1,714.8			1,692.1			1	%

-13-

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

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions, except per share amounts)	2004			2004			2003			2003			2003
INTEREST INCOME
Securities available for sale	$	457		$	445		$	458		$	470		$	435
Mortgages held for sale		470			334			551			906			864
Loans held for sale		66			63			60			57			67
Loans		4,011			3,957			3,713			3,482			3,409
Other interest income		65			59			74			64			80
Total interest income		5,069			4,858			4,856			4,979			4,855
INTEREST EXPENSE
Deposits		394			370			377			384			425
Short-term borrowings		59			63			68			72			87
Long-term debt		390			375			335			349			341
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			32			32			29
Total interest expense		843			808			812			837			882
NET INTEREST INCOME		4,226			4,050			4,044			4,142			3,973
Provision for loan losses		440			404			465			426			421
Net interest income after provision for loan losses		3,786			3,646			3,579			3,716			3,552
NONINTEREST INCOME
Service charges on deposit accounts		637			615			613			607			587
Trust and investment fees		530			535			504			504			470
Credit card fees		279			258			252			251			257
Other fees		440			414			412			422			373
Mortgage banking		493			315			636			773			543
Operating leases		209			209			211			229			245
Insurance		347			317			264			252			289
Net gains (losses) on debt securities available for sale		(61	)		33			(12	)		(23	)		20
Net gains (losses) from equity investments		81			95			143			58			(47	)
Other		245			306			378			118			220
Total noninterest income		3,200			3,097			3,401			3,191			2,957
NONINTEREST EXPENSE
Salaries		1,295			1,277			1,351			1,185			1,155
Incentive compensation		441			391			483			621			503
Employee benefits		391			492			417			374			350
Equipment		271			301			375			298			305
Net occupancy		304			294			310			283			288
Operating leases		156			155			162			175			178
Other		1,495			1,119			1,402			1,639			1,379
Total noninterest expense		4,353			4,029			4,500			4,575			4,158
INCOME BEFORE INCOME TAX EXPENSE		2,633			2,714			2,480			2,332			2,351
Income tax expense		919			947			856			771			826
NET INCOME	$	1,714		$	1,767		$	1,624		$	1,561		$	1,525
NET INCOME APPLICABLE TO COMMON STOCK	$	1,714		$	1,767		$	1,624		$	1,560		$	1,524
EARNINGS PER COMMON SHARE
Earnings per common share	$	1.02		$	1.04		$	.96		$	.93		$	.91
Diluted earnings per common share	$	1.00		$	1.03		$	.95		$	.92		$	.90
DIVIDENDS DECLARED PER COMMON SHARE	$	.45		$	.45		$	.45		$	.45		$	.30
Average common shares outstanding		1,688.1			1,699.3			1,690.2			1,677.2			1,675.7
Diluted average common shares outstanding		1,708.3			1,721.2			1,712.6			1,693.9			1,690.6

-14-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

										% Change
										Jun. 30, 2004 from
	Jun. 30		,	Dec. 31		,	Jun. 30,			Dec. 31		,	Jun. 30		,
(in millions, except shares)	2004			2003			2003			2003			2003
ASSETS
Cash and due from banks	$	13,449		$	15,547		$	16,045			(13	)%		(16	)%
Federal funds sold and securities purchased under resale agreements		2,681			2,745			2,768			(2	)		(3	)
Securities available for sale		36,771			32,953			24,625			12			49
Mortgages held for sale		39,424			29,027			58,716			36			(33	)
Loans held for sale		8,156			7,497			7,009			9			16
Loans		269,731			253,073			211,434			7			28
Allowance for loan losses		(3,940	)		(3,891	)		(3,853	)		1			2
Net loans		265,791			249,182			207,581			7			28
Mortgage servicing rights, net		8,512			6,906			3,821			23			123
Premises and equipment, net		3,627			3,534			3,604			3			1
Goodwill		10,430			10,371			9,803			1			6
Other assets		31,464			30,036			35,611			5			(12	)
Total assets	$	420,305		$	387,798		$	369,583			8	%		14	%
LIABILITIES
Noninterest-bearing deposits	$	78,926		$	74,387		$	80,943			6	%		(2	)%
Interest-bearing deposits		189,199			173,140			149,941			9			26
Total deposits		268,125			247,527			230,884			8			16
Short-term borrowings		29,831			24,659			23,883			21			25
Accrued expenses and other liabilities		21,266			17,501			20,682			22			3
Long-term debt		65,605			63,642			58,513			3			12
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			3,385			—			(100	)
Total liabilities		384,827			353,329			337,347			9			14
STOCKHOLDERS’ EQUITY
Preferred stock		387			214			375			81			3
Common stock — $1-2/3 par value, authorized 6,000,000,000 shares; issued 1,736,381,025 shares		2,894			2,894			2,894			—			—
Additional paid-in capital		9,744			9,643			9,536			1			2
Retained earnings		24,669			22,842			21,281			8			16
Cumulative other comprehensive income		735			938			1,185			(22	)		(38	)
Treasury stock — 48,410,940 shares, 38,271,651 shares and 57,992,372 shares		(2,537	)		(1,833	)		(2,712	)		38			(6	)
Unearned ESOP shares		(414	)		(229	)		(323	)		81			28
Total stockholders’ equity		35,478			34,469			32,236			3			10
Total liabilities and stockholders’ equity	$	420,305		$	387,798		$	369,583			8	%		14	%

-15-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2003			2003
ASSETS
Cash and due from banks	$	13,449		$	13,972		$	15,547		$	15,423		$	16,045
Federal funds sold and securities purchased under resale agreements		2,681			2,439			2,745			2,692			2,768
Securities available for sale		36,771			32,857			32,953			30,260			24,625
Mortgages held for sale		39,424			26,361			29,027			55,328			58,716
Loans held for sale		8,156			8,037			7,497			7,310			7,009
Loans		269,731			264,216			253,073			228,137			211,434
Allowance for loan losses		(3,940	)		(3,891	)		(3,891	)		(3,854	)		(3,853	)
Net loans		265,791			260,325			249,182			224,283			207,581
Mortgage servicing rights, net		8,512			6,097			6,906			5,765			3,821
Premises and equipment, net		3,627			3,545			3,534			3,517			3,604
Goodwill		10,430			10,403			10,371			9,849			9,803
Other assets		31,464			33,318			30,036			36,323			35,611
Total assets	$	420,305		$	397,354		$	387,798		$	390,750		$	369,583
LIABILITIES
Noninterest-bearing deposits	$	78,926		$	78,253		$	74,387		$	77,175		$	80,943
Interest-bearing deposits		189,199			170,116			173,140			174,261			149,941
Total deposits		268,125			248,369			247,527			251,436			230,884
Short-term borrowings		29,831			20,397			24,659			25,589			23,883
Accrued expenses and other liabilities		21,266			19,756			17,501			18,815			20,682
Long-term debt		65,605			73,390			63,642			58,992			58,513
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			—			3,585			3,385
Total liabilities		384,827			361,912			353,329			358,417			337,347
STOCKHOLDERS’ EQUITY
Preferred stock		387			452			214			319			375
Common stock		2,894			2,894			2,894			2,894			2,894
Additional paid-in capital		9,744			9,711			9,643			9,532			9,536
Retained earnings		24,669			23,796			22,842			22,064			21,281
Cumulative other comprehensive income		735			1,057			938			572			1,185
Treasury stock		(2,537	)		(1,984	)		(1,833	)		(2,785	)		(2,712	)
Unearned ESOP shares		(414	)		(484	)		(229	)		(263	)		(323	)
Total stockholders’ equity		35,478			35,442			34,469			32,333			32,236
Total liabilities and stockholders’ equity	$	420,305		$	397,354		$	387,798		$	390,750		$	369,583

-16-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2003			2003
EARNING ASSETS
Federal funds sold and securities purchased under resale agreements	$	2,565		$	2,671		$	2,699		$	2,514		$	6,405
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,190			1,224			1,278			1,283			1,288
Securities of U.S. states and political subdivisions		3,456			3,338			3,141			2,442			2,063
Mortgage backed securities:
Federal agencies		20,076			20,635			21,149			18,538			15,696
Private collateralized mortgage obligations		4,077			2,713			2,014			1,972			1,994
Total mortgage-backed securities		24,153			23,348			23,163			20,510			17,690
Other debt securities (1)		3,346			3,543			3,478			3,540			3,167
Total debt securities available for sale (1)		32,145			31,453			31,060			27,775			24,208
Mortgages held for sale		36,782			25,023			41,055			69,786			65,493
Loans held for sale		8,074			7,911			7,373			7,124			7,063
Loans:
Commercial and commercial real estate:
Commercial		48,711			47,305			47,674			46,947			47,484
Other real estate mortgage		28,586			27,801			26,691			25,635			25,661
Real estate construction		8,428			8,264			8,151			7,775			7,983
Lease financing		5,027			5,053			4,508			4,497			4,570
Total commercial and commercial real estate		90,752			88,423			87,024			84,854			85,698
Consumer:
Real estate 1-4 family first mortgage		89,351			86,375			71,402			57,817			50,292
Real estate 1-4 family junior lien mortgage		41,964			38,328			35,152			32,512			30,341
Credit card		8,508			8,338			8,013			7,683			7,456
Other revolving credit and installment		32,975			32,477			31,975			31,053			28,876
Total consumer		172,798			165,518			146,542			129,065			116,965
Foreign		2,681			2,507			2,420			2,262			2,161
Total loans (2)		266,231			256,448			235,986			216,181			204,824
Other		8,095			8,538			9,169			8,905			7,717
Total earning assets	$	353,892		$	332,044		$	327,342		$	332,285		$	315,710
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	3,011		$	2,962		$	2,744		$	2,592		$	2,536
Market rate and other savings		121,647			117,373			112,392			108,969			104,603
Savings certificates		18,724			19,495			19,949			20,429			21,355
Other time deposits		29,654			22,719			26,382			27,633			26,912
Deposits in foreign offices		9,306			7,171			5,992			5,643			6,278
Total interest-bearing deposits		182,342			169,720			167,459			165,266			161,684
Short-term borrowings		22,689			25,630			28,367			29,572			30,218
Long-term debt		71,085			64,416			58,814			57,960			51,677
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			3,591			3,525			3,215
Total interest-bearing liabilities		276,116			259,766			258,231			256,323			246,794
Portion of noninterest-bearing funding sources		77,776			72,278			69,111			75,962			68,916
Total funding sources	$	353,892		$	332,044		$	327,342		$	332,285		$	315,710
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,997		$	13,152		$	13,083		$	13,642		$	13,320
Goodwill		10,413			10,394			10,209			9,817			9,802
Other		33,242			31,024			34,110			39,251			36,256
Total noninterest-earning assets	$	56,652		$	54,570		$	57,402		$	62,710		$	59,378
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	81,538		$	73,316		$	74,941		$	83,695		$	76,934
Other liabilities		17,700			18,572			18,000			22,139			20,169
Stockholders’ equity		35,190			34,960			33,572			32,838			31,191
Noninterest-bearing funding sources used to fund earning assets		(77,776	)		(72,278	)		(69,111	)		(75,962	)		(68,916	)
Net noninterest-bearing funding sources	$	56,652		$	54,570		$	57,402		$	62,710		$	59,378
TOTAL ASSETS	$	410,544		$	386,614		$	384,744		$	394,995		$	375,088

(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

	Six months ended June 30					,
(in millions)	2004			2003
Balance, beginning of period	$	34,469		$	30,319
Net income		3,481			3,017
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		(6	)		20
Change in valuation allowance related to:
Investment securities and other retained interests		(177	)		2
Derivative instruments and hedging activities		(20	)		187
Common stock issued		734			388
Common stock issued for acquisitions		9			6
Common stock repurchased		(1,621	)		(922	)
Preferred stock released to ESOP		148			137
Preferred stock dividends		—			(2	)
Common stock dividends		(1,526	)		(1,009	)
Other, net		(13	)		93
Balance, end of period	$	35,478		$	32,236

-18-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2003			2003
Commercial and commercial real estate:
Commercial	$	49,962		$	48,034		$	48,729		$	47,720		$	47,577
Other real estate mortgage		28,975			28,323			27,592			25,723			25,703
Real estate construction		8,646			8,259			8,209			7,777			7,853
Lease financing		5,045			5,018			4,477			4,478			4,556
Total commercial and commercial real estate		92,628			89,634			89,007			85,698			85,689
Consumer:
Real estate 1-4 family first mortgage		87,776			90,563			83,535			66,760			53,420
Real estate 1-4 family junior lien mortgage		44,289			40,281			36,629			33,601			31,514
Credit card		8,692			8,357			8,351			7,836			7,626
Other revolving credit and installment		33,458			32,755			33,100			31,919			30,943
Total consumer		174,215			171,956			161,615			140,116			123,503
Foreign		2,888			2,626			2,451			2,323			2,242
Total loans (net of unearned income)	$	269,731		$	264,216		$	253,073		$	228,137		$	211,434

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2003			2003
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	422		$	514		$	592		$	713		$	787
Other real estate mortgage		324			263			285			267			263
Real estate construction		72			71			56			48			61
Lease financing		55			74			73			71			85
Total commercial and commercial real estate		873			922			1,006			1,099			1,196
Consumer:
Real estate 1-4 family first mortgage		317			281			274			258			242
Real estate 1-4 family junior lien mortgage		86			96			87			79			69
Other revolving credit and installment		97			85			88			78			49
Total consumer		500			462			449			415			360
Foreign		6			3			3			3			5
Total nonaccrual loans		1,379			1,387			1,458			1,517			1,561
As a percentage of total loans		.51	%		.52	%		.58	%		.66	%		.74	%
Foreclosed assets		235			222			198			196			190
Real estate investments		2			2			6			6			5
Total nonaccrual loans and other assets	$	1,616		$	1,611		$	1,662		$	1,719		$	1,756
As a percentage of total loans		.60	%		.61	%		.66	%		.75	%		.83	%

-19-

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

	Quarter ended									Six months ended
	Jun. 30		,	Mar. 31		,	Jun. 30		,	Jun. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2004			2003
Balance, beginning of period	$	3,891		$	3,891		$	3,840		$	3,891		$	3,819
Allowances related to business combinations/other		(1	)		—			7			(1	)		32
Provision for loan losses		440			404			421			844			831
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(112	)		(111	)		(147	)		(223	)		(300	)
Other real estate mortgage		(7	)		(7	)		(9	)		(14	)		(10	)
Real estate construction		—			(3	)		(3	)		(3	)		(6	)
Lease financing		(12	)		(12	)		(10	)		(24	)		(20	)
Total commercial and commercial real estate		(131	)		(133	)		(169	)		(264	)		(336	)
Consumer:
Real estate 1-4 family first mortgage		(11	)		(13	)		(9	)		(24	)		(21	)
Real estate 1-4 family junior lien mortgage		(27	)		(29	)		(19	)		(56	)		(37	)
Credit card		(119	)		(109	)		(116	)		(228	)		(228	)
Other revolving credit and installment		(212	)		(224	)		(198	)		(436	)		(398	)
Total consumer		(369	)		(375	)		(342	)		(744	)		(684	)
Foreign		(30	)		(28	)		(25	)		(58	)		(45	)
Total loan charge-offs		(530	)		(536	)		(536	)		(1,066	)		(1,065	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		44			42			37			86			75
Other real estate mortgage		4			2			3			6			5
Real estate construction		1			1			4			2			9
Lease financing		6			6			2			12			3
Total commercial and commercial real estate		55			51			46			106			92
Consumer:
Real estate 1-4 family first mortgage		2			1			3			3			5
Real estate 1-4 family junior lien mortgage		7			4			4			11			7
Credit card		15			15			13			30			25
Other revolving credit and installment		55			56			50			111			99
Total consumer		79			76			70			155			136
Foreign		6			5			5			11			8
Total loan recoveries		140			132			121			272			236
Net loan charge-offs		(390	)		(404	)		(415	)		(794	)		(829	)
Balance, end of period	$	3,940		$	3,891		$	3,853		$	3,940		$	3,853
Net loan charge-offs (annualized) as a percentage of average total loans		.59	%		.63	%		.81	%		.61	%		.84	%
Allowance as a percentage of total loans		1.46	%		1.47	%		1.82	%		1.46	%		1.82	%
Allowance as a percentage of nonaccrual loans		286	%		281	%		247	%		286	%		247	%
Allowance as a percentage of nonaccrual loans and other assets		244	%		242	%		219	%		244	%		219	%

-20-

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

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2003			2003
Balance, beginning of quarter	$	3,891		$	3,891		$	3,854		$	3,853		$	3,840
Allowances related to business combinations/other		(1	)		—			37			(1	)		7
Provision for loan losses		440			404			465			426			421
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(112	)		(111	)		(161	)		(136	)		(147	)
Other real estate mortgage		(7	)		(7	)		(10	)		(12	)		(9	)
Real estate construction		—			(3	)		(3	)		(2	)		(3	)
Lease financing		(12	)		(12	)		(10	)		(12	)		(10	)
Total commercial and commercial real estate		(131	)		(133	)		(184	)		(162	)		(169	)
Consumer:
Real estate 1-4 family first mortgage		(11	)		(13	)		(15	)		(11	)		(9	)
Real estate 1-4 family junior lien mortgage		(27	)		(29	)		(23	)		(16	)		(19	)
Credit card		(119	)		(109	)		(139	)		(109	)		(116	)
Other revolving credit and installment		(212	)		(224	)		(224	)		(206	)		(198	)
Total consumer		(369	)		(375	)		(401	)		(342	)		(342	)
Foreign		(30	)		(28	)		(30	)		(29	)		(25	)
Total loan charge-offs		(530	)		(536	)		(615	)		(533	)		(536	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		44			42			72			31			37
Other real estate mortgage		4			2			4			2			3
Real estate construction		1			1			1			2			4
Lease financing		6			6			2			2			2
Total commercial and commercial real estate		55			51			79			37			46
Consumer:
Real estate 1-4 family first mortgage		2			1			1			3			3
Real estate 1-4 family junior lien mortgage		7			4			1			5			4
Credit card		15			15			13			13			13
Other revolving credit and installment		55			56			51			46			50
Total consumer		79			76			66			67			70
Foreign		6			5			5			5			5
Total loan recoveries		140			132			150			109			121
Net loan charge-offs		(390	)		(404	)		(465	)		(424	)		(415	)
Balance, end of quarter	$	3,940		$	3,891		$	3,891		$	3,854		$	3,853
Net loan charge-offs (annualized) as a percentage of average total loans		.59	%		.63	%		.78	%		.78	%		.81	%
Allowance as a percentage of total loans		1.46	%		1.47	%		1.54	%		1.69	%		1.82	%
Allowance as a percentage of nonaccrual loans		286	%		281	%		267	%		254	%		247	%
Allowance as a percentage of nonaccrual loans and other assets		244	%		242	%		234	%		224	%		219	%

-21-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended June 30					,	%			Six months ended June 30					,	%
(in millions)	2004			2003			Change			2004			2003			Change
Service charges on deposit accounts	$	637		$	587			9	%	$	1,252		$	1,140			10	%
Trust and investment fees:
Trust, investment and IRA fees		383			322			19			758			647			17
Commissions and all other fees		147			148			(1	)		307			282			9
Total trust and investment fees		530			470			13			1,065			929			15
Credit card fees		279			257			9			537			501			7
Other fees:
Cash network fees		46			46			—			89			88			1
Charges and fees on loans		224			186			20			435			366			19
All other		170			141			21			330			285			16
Total other fees		440			373			18			854			739			16
Mortgage banking:
Servicing fees, net of amortization and provision for impairment		461			(741	)		—			627			(1,184	)		—
Net gains (losses) on mortgage loan origination/sales activities		(52	)		1,165			—			46			2,078			(98	)
All other		84			119			(29	)		135			210			(36	)
Total mortgage banking		493			543			(9	)		808			1,104			(27	)
Operating leases		209			245			(15	)		418			496			(16	)
Insurance		347			289			20			664			556			19
Net gains (losses) on debt securities available for sale		(61	)		20			—			(28	)		38			—
Net gains (losses) from equity investments		81			(47	)		—			176			(145	)		—
Net gains on sales of loans		—			5			(100	)		4			5			(20	)
Net gains on dispositions of operations		1			—			—			2			27			(93	)
All other		244			215			13			545			399			37
Total	$	3,200		$	2,957			8	%	$	6,297		$	5,789			9	%

NONINTEREST EXPENSE

	Quarter ended June 30				,	%			Six months ended June 30				,	%
(in millions)	2004		2003			Change			2004		2003			Change
Salaries	$	1,295	$	1,155			12	%	$	2,572	$	2,296			12	%
Incentive compensation		441		503			(12	)		832		950			(12	)
Employee benefits		391		350			12			883		769			15
Equipment		271		305			(11	)		572		573			—
Net occupancy		304		288			6			598		585			2
Operating leases		156		178			(12	)		311		365			(15	)
Contract services		157		250			(37	)		300		405			(26	)
Outside professional services		156		111			41			275		223			23
Outside data processing		106		103			3			205		202			1
Advertising and promotion		118		96			23			202		176			15
Travel and entertainment		105		92			14			202		177			14
Telecommunications		62		86			(28	)		143		164			(13	)
Postage		63		87			(28	)		138		171			(19	)
Stationery and supplies		60		57			5			120		111			8
Charitable donations		10		5			100			17		19			(11	)
Insurance		96		69			39			167		119			40
Operating losses		82		64			28			99		120			(18	)
Security		40		42			(5	)		80		84			(5	)
Loss from debt extinguishment		176		—			—			176		—			—
Core deposit intangibles		34		36			(6	)		68		72			(6	)
All other		230		281			(18	)		422		533			(21	)
Total	$	4,353	$	4,158			5	%	$	8,382	$	8,114			3	%

-22-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2003			2003
Service charges on deposit accounts	$	637		$	615		$	613		$	607		$	587
Trust and investment fees:
Trust, investment and IRA fees		383			375			350			348			322
Commissions and all other fees		147			160			154			156			148
Total trust and investment fees		530			535			504			504			470
Credit card fees		279			258			252			251			257
Other fees:
Cash network fees		46			43			44			48			46
Charges and fees on loans		224			211			191			199			186
All other		170			160			177			175			141
Total other fees		440			414			412			422			373
Mortgage banking:
Servicing fees, net of amortization and provision for impairment		461			166			312			(82	)		(741	)
Net gains (losses) on mortgage loan origination/sales activities		(52	)		98			229			712			1,165
All other		84			51			95			143			119
Total mortgage banking		493			315			636			773			543
Operating leases		209			209			211			229			245
Insurance		347			317			264			252			289
Net gains (losses) on debt securities available for sale		(61	)		33			(12	)		(23	)		20
Net gains (losses) from equity investments		81			95			143			58			(47	)
Net gains on sales of loans		—			4			5			19			5
Net gains on dispositions of operations		1			1			2			—			—
All other		244			301			371			99			215
Total	$	3,200		$	3,097		$	3,401		$	3,191		$	2,957

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2003			2003
Salaries	$	1,295		$	1,277		$	1,351		$	1,185		$	1,155
Incentive compensation		441			391			483			621			503
Employee benefits		391			492			417			374			350
Equipment		271			301			375			298			305
Net occupancy		304			294			310			283			288
Operating leases		156			155			162			175			178
Contract services		157			143			191			270			250
Outside professional services		156			119			164			122			111
Outside data processing		106			99			98			105			103
Advertising and promotion		118			84			118			98			96
Travel and entertainment		105			97			114			98			92
Telecommunications		62			81			87			92			86
Postage		63			75			71			94			87
Stationery and supplies		60			60			68			62			57
Charitable donations		10			7			21			197			5
Insurance		96			71			31			48			69
Operating losses		82			17			44			29			64
Security		40			40			38			41			42
Loss from debt extinguishment		176			—			—			—			—
Core deposit intangibles		34			34			35			35			36
All other		230			192			322			348			281
Total	$	4,353		$	4,029		$	4,500		$	4,575		$	4,158

-23-

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

	Quarter ended June 30																	,
	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	$	2,565			.96	%	$	6		$	6,405			1.20	%	$	19
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,190			3.94			12			1,288			4.67			14
Securities of U.S. states and political subdivisions		3,456			7.93			67			2,063			9.09			43
Mortgage-backed securities:
Federal agencies		20,076			6.03			294			15,696			8.29			302
Private collateralized mortgage obligations		4,077			4.96			48			1,994			6.91			33
Total mortgage-backed securities		24,153			5.85			342			17,690			8.13			335
Other debt securities (4)		3,346			7.77			59			3,167			7.87			59
Total debt securities available for sale (4)		32,145			6.19			480			24,208			7.99			451
Mortgages held for sale (3)		36,782			5.12			470			65,493			5.28			864
Loans held for sale (3)		8,074			3.29			66			7,063			3.82			67
Loans:
Commercial and commercial real estate:
Commercial		48,711			5.66			686			47,484			6.11			723
Other real estate mortgage		28,586			5.15			366			25,661			5.51			352
Real estate construction		8,428			5.12			108			7,983			5.24			104
Lease financing		5,027			6.37			80			4,570			6.39			72
Total commercial and commercial real estate		90,752			5.49			1,240			85,698			5.86			1,251
Consumer:
Real estate 1-4 family first mortgage		89,351			5.19			1,157			50,292			5.75			723
Real estate 1-4 family junior lien mortgage		41,964			4.93			514			30,341			6.16			466
Credit card		8,508			11.75			249			7,456			11.88			221
Other revolving credit and installment		32,975			9.03			742			28,876			9.05			653
Total consumer		172,798			6.18			2,662			116,965			7.06			2,063
Foreign		2,681			16.44			111			2,161			17.77			96
Total loans (5)		266,231			6.05			4,013			204,824			6.67			3,410
Other		8,095			2.94			59			7,717			3.14			62
Total earning assets	$	353,892			5.79			5,094		$	315,710			6.22			4,873
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	3,011			.26			2		$	2,536			.31			2
Market rate and other savings		121,647			.61			184			104,603			.69			179
Savings certificates		18,724			2.21			103			21,355			2.60			138
Other time deposits		29,654			1.09			81			26,912			1.29			87
Deposits in foreign offices		9,306			1.06			24			6,278			1.22			19
Total interest-bearing deposits		182,342			.87			394			161,684			1.05			425
Short-term borrowings		22,689			1.04			59			30,218			1.16			87
Long-term debt		71,085			2.20			390			51,677			2.64			341
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			—			3,215			3.63			29
Total interest-bearing liabilities		276,116			1.23			843			246,794			1.43			882
Portion of noninterest-bearing funding sources		77,776			—			—			68,916			—			—
Total funding sources	$	353,892			.96			843		$	315,710			1.13			882
Net interest margin and net interest income on a taxable-equivalent basis(6)					4.83	%	$	4,251						5.09	%	$	3,991
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	12,997								$	13,320
Goodwill		10,413									9,802
Other		33,242									36,256
Total noninterest-earning assets	$	56,652								$	59,378
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	81,538								$	76,934
Other liabilities		17,700									20,169
Stockholders’ equity		35,190									31,191
Noninterest-bearing funding sources used to fund earning assets		(77,776	)								(68,916	)
Net noninterest-bearing funding sources	$	56,652								$	59,378
TOTAL ASSETS	$	410,544								$	375,088

(1)	Our average prime rate was 4.00% and 4.25% for the quarters ended June 30, 2004 and 2003, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.30% and 1.24% for the same quarters, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.
	-24-

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

	Six months ended June 30																	,
	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	$	2,618			.95	%	$	12		$	4,762			1.24	%	$	29
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,207			4.05			24			1,291			4.99			30
Securities of U.S. states and political subdivisions		3,397			7.93			129			2,051			8.92			85
Mortgage-backed securities:
Federal agencies		20,356			6.02			592			16,697			8.05			623
Private collateralized mortgage obligations		3,395			5.09			83			2,009			7.09			68
Total mortgage-backed securities		23,751			5.89			675			18,706			7.94			691
Other debt securities (4)		3,444			7.68			119			3,092			7.72			116
Total debt securities available for sale (4)		31,799			6.22			947			25,140			7.84			922
Mortgages held for sale (3)		30,902			5.20			804			61,977			5.41			1,678
Loans held for sale (3)		7,993			3.24			129			7,033			3.85			134
Loans:
Commercial and commercial real estate:
Commercial		48,008			5.76			1,376			47,247			6.18			1,450
Other real estate mortgage		28,193			5.17			725			25,524			5.59			709
Real estate construction		8,346			5.03			209			7,945			5.25			207
Lease financing		5,040			6.44			162			4,403			6.27			137
Total commercial and commercial real estate		89,587			5.54			2,472			85,119			5.93			2,503
Consumer:
Real estate 1-4 family first mortgage		87,863			5.26			2,308			47,757			5.85			1,393
Real estate 1-4 family junior lien mortgage		40,146			5.01			1,000			29,473			6.17			902
Credit card		8,423			11.84			498			7,428			12.16			452
Other revolving credit and installment		32,726			9.03			1,472			28,134			9.36			1,308
Total consumer		169,158			6.26			5,278			112,792			7.23			4,055
Foreign		2,595			17.06			222			2,057			18.16			187
Total loans (5)		261,340			6.12			7,972			199,968			6.78			6,745
Other		8,316			2.71			112			7,417			3.04			113
Total earning assets	$	342,968			5.86			9,976		$	306,297			6.34			9,621
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	2,986			.29			4		$	2,472			.34			4
Market rate and other savings		119,510			.61			363			102,720			.72			366
Savings certificates		19,110			2.23			212			21,678			2.68			288
Other time deposits		26,186			1.09			142			23,739			1.32			156
Deposits in foreign offices		8,239			1.05			43			6,307			1.22			38
Total interest-bearing deposits		176,031			.87			764			156,916			1.09			852
Short-term borrowings		24,159			1.01			122			30,842			1.19			182
Long-term debt		67,751			2.26			765			49,183			2.73			671
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			—			3,051			3.72			56
Total interest-bearing liabilities		267,941			1.24			1,651			239,992			1.48			1,761
Portion of noninterest-bearing funding sources		75,027			—			—			66,305			—			—
Total funding sources	$	342,968			.97			1,651		$	306,297			1.16			1,761
Net interest margin and net interest income on a taxable-equivalent basis(6)					4.89	%	$	8,325						5.18	%	$	7,860
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,075								$	13,504
Goodwill		10,403									9,796
Other		32,133									35,556
Total noninterest-earning assets	$	55,611								$	58,856
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	77,427								$	74,270
Other liabilities		18,136									19,990
Stockholders’ equity		35,075									30,901
Noninterest-bearing funding sources used to fund earning assets		(75,027	)								(66,305	)
Net noninterest-bearing funding sources	$	55,611								$	58,856
TOTAL ASSETS	$	398,579								$	365,153

(1)	Our average prime rate was 4.00% and 4.25% for the six months ended June 30, 2004 and 2003, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.21% and 1.29% for the same periods, respectively.
(2)	Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3)	Yields are based on amortized cost balances computed on a settlement date basis.
(4)	Includes certain preferred securities.
(5)	Nonaccrual loans and related income are included in their respective loan categories.
(6)	Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.
	-25-

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 (2)						Company
Quarter ended June 30,		2004		2003		2004		2003		2004		2003		2004			2003			2004		2003
Net interest income (1)	$	2,989	$	2,865	$	559	$	560	$	680	$	550	$	(2	)	$	(2	)	$	4,226	$	3,973
Provision for loan losses		213		227		18		46		209		148		—			—			440		421
Noninterest income		2,359		2,186		720		656		84		95		37			20			3,200		2,957
Noninterest expense		3,126		3,200		663		636		387		321		177			1			4,353		4,158
Income (loss) before income tax expense (benefit)		2,009		1,624		598		534		168		176		(142	)		17			2,633		2,351
Income tax expense (benefit)		693		565		213		189		63		66		(50	)		6			919		826
Net income (loss)	$	1,316	$	1,059	$	385	$	345	$	105		110	$	(92	)	$	11		$	1,714	$	1,525
Average loans	$	185.9	$	135.7	$	52.1	$	49.8	$	28.2	$	19.3	$	—		$	—		$	266.2	$	204.8
Average assets		298.8		269.5		75.8		78.4		29.8		21.1		6.1			6.1			410.5		375.1
Average core deposits		198.9		184.1		25.9		21.2		.1		.1		—			—			224.9		205.4
Six months ended June 30,
Net interest income (1)	$	5,835	$	5,642	$	1,121	$	1,111	$	1,324	$	1,073	$	(4	)	$	(5	)	$	8,276	$	7,821
Provision for loan losses		427		442		41		100		376		289		—			—			844		831
Noninterest income		4,499		4,293		1,548		1,309		186		186		64			1			6,297		5,789
Noninterest expense		6,120		6,226		1,332		1,256		753		629		177			3			8,382		8,114
Income (loss) before income tax expense (benefit)		3,787		3,267		1,296		1,064		381		341		(117	)		(7	)		5,347		4,665
Income tax expense (benefit)		1,304		1,150		463		371		140		129		(41	)		(2	)		1,866		1,648
Net income (loss)	$	2,483	$	2,117	$	833	$	693	$	241	$	212	$	(76	)	$	(5	)	$	3,481	$	3,017
Average loans	$	183.1	$	132.0	$	51.2	$	49.6	$	27.0	$	18.4	$	—		$	—		$	261.3	$	200.0
Average assets		288.1		262.5		75.8		76.3		28.6		20.3		6.1			6.1			398.6		365.2
Average core deposits		193.6		180.2		25.3		20.8		.1		.1		—			—			219.0		201.1

(1)

Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment. In general, Community Banking has excess liabilities and receives interest credits for the funding it provides to other segments.

(2)

The other income and expense items principally relate to Corporate level equity investment activities, and other separately identified transactions recorded at the enterprise level, including, for the quarter and six months ended June 30, 2004, a $176 million loss on debt extinguishment. Average assets consist of unallocated goodwill held at the enterprise level.

-26-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(income/expense in millions, average balances in billions)	2004			2004			2003			2003			2003
COMMUNITY BANKING
Net interest income	$	2,989		$	2,846		$	2,864		$	2,990		$	2,865
Provision for loan losses		213			214			236			213			227
Noninterest income		2,359			2,140			2,544			2,379			2,186
Noninterest expense		3,126			2,994			3,385			3,603			3,200
Income before income tax expense		2,009			1,778			1,787			1,553			1,624
Income tax expense		693			611			605			488			565
Net income	$	1,316		$	1,167		$	1,182		$	1,065		$	1,059
Average loans	$	185.9		$	180.3		$	162.7		$	146.0		$	135.7
Average assets		298.8			277.4			278.5			290.2			269.5
Average core deposits		198.9			188.3			186.3			191.8			184.1
WHOLESALE BANKING
Net interest income	$	559		$	562		$	561		$	556		$	560
Provision for loan losses		18			23			23			54			46
Noninterest income		720			828			750			707			656
Noninterest expense		663			669			694			629			636
Income before income tax expense		598			698			594			580			534
Income tax expense		213			250			212			208			189
Net income	$	385		$	448		$	382		$	372		$	345
Average loans	$	52.1		$	50.3		$	49.8		$	49.0		$	49.8
Average assets		75.8			75.7			74.8			75.7			78.4
Average core deposits		25.9			24.7			23.6			23.8			21.2
WELLS FARGO FINANCIAL
Net interest income	$	680		$	644		$	638		$	599		$	550
Provision for loan losses		209			167			176			159			148
Noninterest income		84			102			96			97			95
Noninterest expense		387			366			370			343			321
Income before income tax expense		168			213			188			194			176
Income tax expense		63			77			69			73			66
Net income	$	105		$	136		$	119		$	121		$	110
Average loans	$	28.2		$	25.8		$	23.5		$	21.2		$	19.3
Average assets		29.8			27.4			25.3			22.9			21.1
Average core deposits		.1			.1			.1			.1			.1
OTHER(1)
Net interest income	$	(2	)	$	(2	)	$	(19	)	$	(3	)	$	(2	)
Provision for loan losses		—			—			30			—			—
Noninterest income		37			27			11			8			20
Noninterest expense		177			—			51			—			1
Income (loss) before income tax expense (benefit)		(142	)		25			(89	)		5			17
Income tax expense (benefit)		(50	)		9			(30	)		2			6
Net income (loss)	$	(92	)	$	16		$	(59	)	$	3		$	11
Average loans	$	—		$	—		$	—		$	—		$	—
Average assets		6.1			6.1			6.1			6.2			6.1
Average core deposits		—			—			—			—			--
CONSOLIDATED COMPANY
Net interest income	$	4,226		$	4,050		$	4,044		$	4,142		$	3,973
Provision for loan losses		440			404			465			426			421
Noninterest income		3,200			3,097			3,401			3,191			2,957
Noninterest expense		4,353			4,029			4,500			4,575			4,158
Income before income tax expense		2,633			2,714			2,480			2,332			2,351
Income tax expense		919			947			856			771			826
Net income	$	1,714		$	1,767		$	1,624		$	1,561		$	1,525
Average loans	$	266.2		$	256.4		$	236.0		$	216.2		$	204.8
Average assets		410.5			386.6			384.7			395.0			375.1
Average core deposits		224.9			213.1			210.0			215.7			205.4

(1) The other income and expense items principally relate to Corporate level equity investment activities, and other separately identified transactions recorded at the enterprise level for management reporting, including, for the quarter ended June 30, 2004, a $176 million loss on debt extinguishment and, for the quarter ended December 31, 2003, 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. Average assets consist of unallocated goodwill held at the enterprise level.

-27-

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

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in millions)	2004			2004			2003			2003			2003
Mortgage Servicing Rights:
Balance, beginning of quarter	$	8,270		$	8,848		$	7,589		$	6,375		$	6,652
Originations		597			338			674			1,377			892
Purchases		466			268			410			874			462
Amortization		(431	)		(511	)		(459	)		(572	)		(926	)
Write-down		—			(169	)		—			(492	)		(535	)
Other (includes changes in mortgage servicing rights due to hedging)		1,198			(504	)		634			27			(170	)
Balance, end of quarter	$	10,100		$	8,270		$	8,848		$	7,589		$	6,375
Valuation Allowance:
Balance, beginning of quarter	$	2,173		$	1,942		$	1,824		$	2,554		$	2,469
Provision for mortgage servicing rights in excess of fair value		—			400			118			—			620
Reversal of provision for mortgage servicing rights in excess of fair value		(585	)		—			—			(238	)		—
Write-down of mortgage servicing rights		—			(169	)		—			(492	)		(535	)
Balance, end of quarter	$	1,588		$	2,173		$	1,942		$	1,824		$	2,554
Mortgage servicing rights, net	$	8,512		$	6,097		$	6,906		$	5,765		$	3,821
Ratio of mortgage servicing rights to related loans serviced for others		1.37	%		1.00	%		1.15	%		1.03	%		.73	%

	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in billions)	2004			2004			2003			2003			2003
Managed Servicing Portfolio:
Loans serviced for others	$	622		$	609		$	598		$	560		$	522
Owned loans serviced (portfolio and held for sale)		127			116			112			121			111
Total owned servicing		749			725			710			681			633
Sub-servicing		32			28			21			18			23
Total managed servicing portfolio	$	781		$	753		$	731		$	699		$	656
Weighted-average note rate (owned servicing only)		5.75	%		5.84	%		5.90	%		5.98	%		6.23	%

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

-28-

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

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in billions)	2004			2004			2003			2003			2003
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	100		$	119		$	71		$	135		$	204
Percentage of refinances		33	%		56	%		45	%		59	%		77	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	57		$	72		$	46		$	62		$	120

	Quarter ended
	Jun. 30		,	Mar. 31		,	Dec. 31		,	Sept. 30		,	Jun. 30		,
(in billions)	2004			2004			2003			2003			2003
Residential Real Estate Originations: (1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	45		$	30		$	31		$	80		$	73
Correspondent/Wholesale		39			25			30			71			54
Home equity loans and lines		10			8			8			8			7
Wells Fargo Financial		2			2			2			2			1
Total	$	96		$	65		$	71		$	161		$	135
Year-to-date	$	161		$	65		$	470		$	399		$	238

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