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

Exhibit 99

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

Tuesday, January 18, 2005

WELLS FARGO REPORTS RECORD
ANNUAL AND QUARTERLY EARNINGS PER SHARE AND REVENUE

Year 2004 Highlights:

• Record diluted earnings per share of $4.09, up 12 percent from prior year’s $3.65

• Record net income of $7.0 billion, up 13 percent from prior year’s $6.2 billion

• Return on equity of 19.6 percent

• Record revenue of $30.1 billion, up 6 percent from prior year; 11 percent revenue growth in businesses other than Wells Fargo Home Mortgage

• Noninterest expense up 2 percent from prior year

Fourth Quarter 2004 Highlights:

• Record diluted earnings per share of $1.04, up 10 percent from prior year’s $.95

• Record net income of $1.8 billion, up 10 percent from prior year’s $1.6 billion

• Record revenue of $8.2 billion, up 10 percent from prior year

• Strong loan and deposit growth

• Average loans up 19 percent from prior year

• Average commercial and commercial real estate loans up 10 percent from prior year

• Average core deposits up 10 percent from prior year

• Solid asset quality

• Nonperforming assets down $90 million, or 5 percent, from prior year

• Net charge-offs flat from prior year

Selected Financial Information	Full Year									Fourth Quarter
							%									%
Earnings	2004			2003			Change			2004			2003			Change
Diluted earnings per share	$	4.09		$	3.65			12	%	$	1.04		$	.95			10	%
Net income (in millions)		7,014			6,202			13			1,785			1,624			10
Asset Quality
Net charge-offs (in millions)	$	1,666		$	1,719			(3	)	$	465		$	465			—
Net charge-off rate		.62	%		.81	%		(23	)		.66	%		.78	%		(15	)
Nonperforming assets as % of total loans		.55			.66			(17	)		.55			.66			(17	)
Other
Revenue (in millions)	$	30,059		$	28,389			6		$	8,168		$	7,445			10
Average loans (in billions)		269.6			213.1			26			281.2			236.0			19
Average core deposits (in billions)		223.4			207.0			8			230.2			210.0			10

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SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported record diluted earnings per common share (EPS) of $4.09 for 2004, compared with $3.65 in 2003, up 12 percent. Net income was a record $7.0 billion, up 13 percent from $6.2 billion in 2003. For fourth quarter 2004, net income was a record $1.8 billion, or $1.04 per share, compared with $1.6 billion, or $.95 per share, for fourth quarter 2003, an increase in earnings per share of 10 percent.

      “This was another exceptional year for our company, among the very best not just in financial services but in any industry, with record diluted earnings per share of $4.09, record net income of $7.0 billion and solid market share growth across our more than 80 businesses,” said Chairman and CEO Dick Kovacevich. “Because these results would not have been possible without the customer focus and dedication of our exceptional team, today we’re announcing a special contribution of Wells Fargo common stock to the 401(k) Plan for eligible team members, equaling one percent of a team member’s pay, up to a maximum contribution of $750, totaling $44 million.

      Combined revenue in all of our businesses other than Wells Fargo Home Mortgage (Home Mortgage), which had extraordinary revenue in 2003 due to the refinance boom, grew 11 percent this year - 6 percent including Home Mortgage. In addition to double-digit growth in EPS, we also had double-digit growth in loans and retail core deposits and continued strong credit quality for the year. Even more remarkable, our company has been achieving outstanding results not just for one, two or even five years, as many admired companies have done, but for the past 20 years, through many different economic cycles. In fact, due to our consistent vision, strong culture and time-tested business model, our annual compound growth over the past 20 years has averaged 13 percent in revenue and averaged 14 percent in diluted EPS, and our total annual compound stockholder return has been 23 percent compared with 13 percent for the S&P 500. Our total annual stockholder return has been about 10 percentage points above the S&P 500 for each of the past five, ten, 15 and 20 year periods.

      We have a 20-year history of investing in our company, and 2004 was one of our highest investment years ever. You must reinvest to consistently grow profit and revenue at double-digit rates for 20 years. We achieved record results while making very significant investments throughout the year to benefit the future, including opening 177 new stores, increasing the number of team members serving our customers by over 5,000, adding Wells Fargo stock to every eligible team member’s 401(k) account to thank them for all their efforts, making significant incremental investments in electronic imaging, call centers and other technology projects, integrating acquisitions, and improving future margins by incurring the costs of extinguishing high interest rate debt and selling low interest rate assets. We continued to support our communities by taking a $217 million charitable contribution expense in the fourth quarter, to be funded by tax-advantaged venture capital gains, helping ensure that our Foundation remains well funded for eight to ten years.

      In 2004, we became one of the nation’s 20 largest mutual fund companies with the acquisition of $29 billion in assets under management from Strong Financial Corporation (Strong Financial). Our stock hit a record high close of $63.25 last month. Our solid financial performance enables us to be one of the top givers to non-profits among all U.S. companies. We continue to be the only ‘Aaa’ rated bank in the U.S., the highest possible credit rating. We begin 2005 with good earnings momentum in our major businesses.”

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Financial Performance

      “Our financial results for 2004 were outstanding and continued in the fourth quarter with strong earnings per share and accelerated revenue growth,” said Chief Financial Officer Howard Atkins. “Earnings growth was broad based across our businesses led by strong growth in consumer lending, deposits, asset management, commercial lending and consumer finance, and solid results from Home Mortgage.”

      During fourth quarter 2004, the Company made a special 401(k) contribution of $44 million ($.02 EPS) in recognition of our team members’ outstanding performance. In addition, the Company recorded a $217 million ($.08 EPS) charitable contribution expense that is projected to leave the Wells Fargo Foundation well funded for the next eight to ten years. As previously announced, the Company also incurred $19 million ($.01 EPS) in integration expense related to the closing of the Strong Financial transaction in fourth quarter 2004. In 2005, the Company expects integration expense of approximately $.02 per share for the balance of the Strong Financial transaction and for the pending acquisition of Houston-based First Community Capital Corporation. “Although we believe that stock options should not be treated as an expense,” said Atkins, “we will expense stock options as required, beginning July 1, 2005. Using the ‘modified prospective’ method of adoption, we estimate the effect of expensing current outstanding options will reduce earnings by three cents per share for the last half of 2005.”

Revenue

      Revenue of $8.2 billion for fourth quarter 2004 grew $723 million, or 10 percent, from a year ago. “Revenue growth was broad based, with particularly strong growth in consumer lending, deposits, small business banking, credit and debit cards, consumer finance, market-sensitive revenues and mortgage banking,” said Atkins.

      Full-year 2004 revenue of $30 billion - a new record - grew 6 percent from 2003 despite a 37 percent decrease in mortgage originations as the refinance driven market declined from its exceptional 2003 level. Balance sheet repositioning actions during the year, designed to improve earning asset yields and to reduce long-term debt costs, reduced annual revenue growth by approximately one percentage point. For the year, Home Mortgage revenue declined $807 million, or 16 percent, from $5.2 billion in 2003 to $4.4 billion in 2004. Combined revenue of businesses other than Home Mortgage grew 11 percent in 2004 from 2003. On a linked-quarter basis, consolidated revenue increased $850 million, or 12 percent, due to particularly strong growth in trust and investments, consumer loan fees, mortgage banking, equity investments, trading and other capital market activities.

Loans

      Average loans of $281.2 billion in fourth quarter 2004 increased 19 percent from $236.0 billion in fourth quarter 2003, and $6.9 billion, or 10 percent (annualized), on a linked-quarter basis. Average commercial and commercial real estate loans increased $8.6 billion, or 10 percent, from fourth quarter 2003, and loan growth accelerated to 13 percent (annualized), up $3.1 billion, on a linked-quarter basis.

      “For the third straight quarter, commercial loan growth was broad based across virtually all of our businesses, including small business direct, middle market, commercial real estate, leasing, trade finance and asset-based lending,” said Atkins. “We also saw continued

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strong demand for consumer credit,” said Atkins. Average consumer loans increased $34.9 billion, or 24 percent, from fourth quarter 2003, and $3.3 billion, or 7 percent (annualized), on a linked-quarter basis. Most of the difference between the linked-quarter and year-over-year growth in both total and consumer loans was due to sales of lower yielding adjustable rate mortgages (ARMs). Home equity, credit card, revolving credit and installment loans grew solidly in fourth quarter 2004.

Deposits

      Average core deposits of $230.2 billion for fourth quarter 2004 grew $20.2 billion, or 10 percent, from fourth quarter 2003, and increased $5.2 billion, or 9 percent (annualized), on a linked-quarter basis. Average mortgage escrow deposits were $14.5 billion for fourth quarter 2004, essentially unchanged from fourth quarter 2003 and third quarter 2004. Average retail core deposits for fourth quarter 2004 grew 10 percent from fourth quarter 2003 and 8 percent (annualized) on a linked-quarter basis. Average consumer checking account balances for fourth quarter 2004 grew 11 percent from fourth quarter 2003.

Net Interest Income

      Net interest income for fourth quarter 2004 increased 10 percent from a year ago. Earning assets for the fourth quarter were up 12 percent from a year ago due to the 19 percent growth in average loans. On a linked-quarter basis, net interest income was up $38 million, or 3 percent (annualized), driven by a 4 percent (annualized) increase in earning assets.

      “Earning asset growth on a linked-quarter basis was below our solid 10 percent (annualized) loan growth due to a $2.5 billion decline in average mortgages held for sale and a $1.3 billion decline in average debt securities available for sale,” said Atkins. The fourth quarter net interest margin remained essentially flat linked-quarter at 4.88 percent in part due to the positive impact of the balance sheet repositioning in 2004. At December 31, 2004, the Company had $1.4 billion in unrealized gains on securities available for sale, unchanged from September 30, 2004.

Noninterest Income

      Noninterest income increased $311 million, or 9 percent, from fourth quarter 2003. “The increase in fee income was driven by growth across our businesses, with particular strength in consumer loans, trust and investments, credit and debit cards, mortgage banking, equity investments and trading activities on behalf of our customers,” said Atkins. These same businesses led to an increase in noninterest income of $812 million, or 28 percent, on a linked-quarter basis. Mortgage banking servicing fees in fourth quarter 2004 included $234 million from a mortgage servicing rights valuation reserve release offset by $189 million of ineffective hedge losses. Despite the reserve release, mortgage servicing rights were valued at 1.15 percent of loans serviced for others, down from 1.18 percent at September 30, 2004.

Noninterest Expense

      Noninterest expense was up $471 million, or 10 percent, from fourth quarter 2003 and $751 million, or 18 percent, on a linked-quarter basis. These increases were primarily due to the $217 million charitable contribution expense, the $44 million special 401(k) contribution, the $19 million Strong Financial integration expense, growth in stores and team members, and a step-up in technology investments for electronic imaging, call centers and other activities in the fourth quarter.

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      “Despite the balance sheet repositioning actions taken during the year, which reduced revenue by approximately one percent, and our significant level of investment spending, which will benefit sales and revenue growth going forward, operating leverage improved during 2004 with consolidated revenue growing six percent and consolidated expense up only two percent, including all investment spending,” said Atkins.

Credit Quality

      “Fourth quarter credit results were consistent with our expectations,” said Chief Credit Officer Dave Munio. “Credit losses in the fourth quarter were $465 million (.66 percent of average loans outstanding, annualized), flat to the $465 million (.78 percent) losses a year ago despite a $45 billion increase in average total loans. Total credit losses and loss rates were up from third quarter’s $407 million (.59 percent) due to the expected seasoning in the high-growth consumer portfolios at Wells Fargo Financial and Community Banking.” Total consumer credit loss rates for fourth quarter 2004 were .75 percent, up from .67 percent in third quarter 2004, but down from .91 percent in fourth quarter 2003. The credit loss rate for junior lien mortgages (second mortgage home equity loans and lines) was 19 basis points in fourth quarter 2004, up from 12 basis points in third quarter 2004, but down from 25 basis points in fourth quarter 2003. “The fourth quarter 2004 loss rates in our consumer portfolios were within our expected normal range of losses and reflected the anticipated seasoning of high-growth portfolios,” said Munio.

      “Our credit losses for full-year 2004 were below 2003 and flat compared with 2002 despite significant loan portfolio growth,” said Munio. Credit losses for 2004 were $1.67 billion (.62 percent) compared with $1.72 billion (.81 percent) in 2003 and $1.68 billion (.96 percent) for 2002. “The majority of our loan growth was driven by consumer real estate, which inherently has lower losses that emerge over a longer time frame compared with other consumer products,” he said. “We expect to see total credit losses increase in 2005 due to the seasoning of these portfolios and modest growth in our middle-market Wholesale Banking portfolios. Fourth quarter provision for credit losses matched net charge-offs. We believe the allowance was adequate for losses inherent in the loan portfolios at year-end 2004.”

      “Total nonperforming assets remained stable,” said Munio. At December 31, 2004, they totaled $1.57 billion, or .55 percent of total loans, compared with $1.57 billion (.56 percent) last quarter. “Wholesale Banking nonperformers continued to decline and were down over $300 million during 2004,” continued Munio. “Offsetting this decline was an anticipated increase in consumer nonperformers, where nonperforming status is determined by certain delinquency limits, in our auto and real estate portfolios. These consumer nonperformers have limited loss content based on the strength of the underlying collateral. Consumer delinquencies remained consistent with our credit models, and Wells Fargo’s losses have followed the national trend of lower consumer bankruptcies during 2004.”

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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 of the three business segments was:

	Full Year						Fourth Quarter
					%						%
Net income (in millions)	2004		2003		Change		2004		2003		Change
Community Banking	$	4,967	$	4,364		14	$	1,238	$	1,182		5
Wholesale Banking		1,599		1,446		11		403		382		5
Wells Fargo Financial		507		451		12		129		119		8

      More financial information about the business segments is on pages 27 and 28.

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

Selected Financial Information	Full Year							Fourth Quarter
					%							%
(in millions)	2004		2003		Change			2004		2003		Change
Total revenue	$	21,513	$	20,713		4		$	5,927	$	5,408		10
Provision for credit losses		858		892		(4	)		232		236		(2	)
Noninterest expense		13,077		13,214		(1	)		3,814		3,385		13
Net income		4,967		4,364		14			1,238		1,182		5
Average loans (in billions)	$	187.0	$	143.2		31		$	191.7	$	162.7		18
Average assets (in billions)		295.8		273.5		8			302.6		278.5		9

• Record annual net income: $5.0 billion, up 14 percent from 2003

• Average loans: up 18 percent from fourth quarter 2003

• Average core deposits: up 10 percent from fourth quarter 2003

      Community Banking reported record net income of $4,967 million for 2004, up 14 percent over 2003. “This outstanding performance was largely due to record core product sales, market share growth across our businesses and the continued exceptional performance of our team members,” said John Stumpf, Group EVP, Community Banking.

      Average loans were $187.0 billion in 2004, up 31 percent from $143.2 billion in 2003. Retail core deposits averaged $183.7 billion in 2004, up 11 percent over the prior year. Revenue in businesses other than Home Mortgage rose 10 percent on higher fee revenue, including deposit service charges, trust and investments, debit and credit cards and insurance. Home Mortgage revenue decreased from 2003, a year of record originations from strong refinancing activity. While total Community Banking noninterest expense included additional investments made in technology, store growth and additional team members, total noninterest expense decreased $137 million, or 1 percent, due to overall expense management, including a reduction in Home Mortgage production costs.

      For fourth quarter 2004, Community Banking reported net income of $1,238 million, compared with $1,182 million in fourth quarter 2003. Revenue increased 10 percent to $5,927 million in fourth quarter 2004 from the same period in 2003, primarily due to higher

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trust and investment fees, credit and debit card revenue, mortgage banking and other fees. Noninterest expense was $3,814 million in fourth quarter 2004, an increase of $429 million from fourth quarter 2003, and included the $217 million charitable contribution expense, the special 401(k) contribution, as well as expenditures to support technology investments and store growth.

Regional Banking Highlights

• Record core product sales: 13.9 million, up 18 percent from 2003

• Average household profit: up 17 percent over 2003

• Investments for future growth: opened 104 new stores and added 1,800 retail bankers, up 18 percent over 2003

• Improved customer retention and increased team member engagement in 2004

      “Our talented, motivated and engaged team members achieved record annual core sales in 2004, up 18 percent from 2003, including selling more than one million core products each month during the year, another record,” said Carrie Tolstedt, Group EVP, Regional Banking. “And, one in three of new checking account customers now has aWells Fargo Pack^SM – a checking account and at least three other products. This is up from 25 percent in 2003. As a result of strong sales, customer cross-sell reached a record high of 4.6 products per consumer, up from about three in 1998. The number of products sold is important, but even more significant is that our average household profit was up 17 percent from 2003. We invested throughout the year in our business to better serve our customers and generate future growth. We opened 104 new banking stores, added 1,800 retail bankers, and doubled the number of licensed bankers. Our team members are energized to serve our customers, with team member engagement scores now in the 70th percentile in the Gallup data base, up from the 56th percentile in 2003. And, in 2004, customer retention for high value customers improved by six percent.”

Internet Highlights

• Ranked Best Consumer Internet Bank in the World in 2004 byGlobal Finance

• Active online customers of 6.2 million, up 27 percent from the prior year

• Increased product sales in 2004:

• Consumer product sales up 42 percent

• Student loans up 123 percent

• Personal lines and loans up 142 percent

      Wells Fargo continued to be recognized as the best internet bank and received awards fromGlobal Finance as the “Best Consumer Online Bill Payment & Presentment” in the world, “Best Consumer Online Credit” in North America and “Best Corporation/Institutional Web Site Design” in North America. Additionally, we were ranked the “Number one Internet bank” on Watchfire® GómezPro’s Online Banker Scorecard.

      Active internet customers increased to 6.2 million, up 27 percent from 2003, and an industry-leading 51 percent penetration of our consumer checking accounts. Online bill pay customers increased 35 percent to 2.2 million. Online consumer product sales increased 42 percent.

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Home Mortgage and Home Equity Highlights

• $298 billion of mortgage originations in 2004, third highest ever

• Record $805 billion owned mortgage servicing portfolio, up 13 percent from 2003

• Ranked #1 nationally in home equity loan market share for the fourth consecutive year

      “We are very pleased with the overall performance and execution of our home financing businesses in 2004,” said Mark Oman, Group EVP, Home and Consumer Finance. “We saw very strong loan growth with the first mortgage portfolio up 5 percent to $87.7 billion and the second mortgage portfolio up 42 percent to $52.2 billion. With lower refinancing demand in 2004, residential mortgage originations of $298 billion were down 37 percent from the industry record of $470 billion we established in 2003. Nevertheless, in 2004, we saw the benefit of our balanced business model at Home Mortgage, which includes both our residential mortgage servicing business and our residential mortgage origination business. As refinance originations moderated, so did prepayments of our servicing portfolio, resulting in significantly improved servicing profitability.”

      The owned servicing portfolio, including commercial mortgages, grew to a record $805 billion at December 31, 2004, up $95 billion, or 13 percent, from December 31, 2003. The carrying value of mortgage servicing rights at year-end was $7.9 billion, 1.15 percent of loans serviced for others, compared with $6.9 billion, 1.15 percent of loans serviced for others at year-end 2003 and $7.8 billion, 1.18 percent of loans serviced for others at September 30, 2004. The weighted-average note rate declined 15 basis points in 2004 to end the year at 5.75 percent.

      The Company retained the number one market share in home equity in the U.S. for the fourth consecutive year. The home equity portfolio continued to perform better than expected with an average FICO score in the low 720s and an average combined loan to value of 70 percent assuming the entire equity line is drawn down.

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	Full Year							Fourth Quarter
					%							%
(in millions)	2004		2003		Change			2004		2003		Change
Total revenue	$	5,279	$	4,994		6		$	1,356	$	1,311		3
Provision for credit losses		62		177		(65	)		11		23		(52	)
Noninterest expense		2,728		2,579		6			718		694		3
Net income		1,599		1,446		11			403		382		5
Average loans (in billions)	$	53.1	$	49.5		7		$	56.4	$	49.8		13
Average assets (in billions)		77.6		75.8		2			81.6		74.8		9

• Record annual net income: $1.6 billion, up 11 percent from 2003, sixth consecutive year of record earnings

• Broad-based average loan growth of 20 percent (annualized) from prior quarter

• #1 market share of “middle market” companies in the West

• Two-thirds of corporate customers now bank with us actively online through the CEO® (Commercial Electronic Office) portal

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• Acquired $29 billion in assets under management from Strong Financial making Wells Fargo a top 20 mutual fund company

      Wholesale Banking reported record net income of $1,599 million in 2004, an increase of 11 percent over 2003. Average loans rose 7 percent to $53.1 billion in 2004 from $49.5 billion in 2003. The quality of Wholesale Banking’s loan portfolio improved as reflected in a lower level of nonperforming loans and a decrease in net credit losses from the prior year. The provision for credit losses was $62 million in 2004, compared with $177 million a year earlier. Noninterest income was $3,070 million in 2004, compared with $2,766 million in 2003, an increase of 11 percent. The increase in noninterest income included higher fee revenue, insurance brokerage and capital markets activity.

      For fourth quarter 2004, Wholesale Banking net income was $403 million, compared with $382 million in fourth quarter 2003. Average loans increased 13 percent to $56.4 billion in fourth quarter 2004 from the prior year. Wholesale Banking’s fourth quarter 2004 results included a lower level of credit losses, higher capital markets activity and integration charges associated with the Strong Financial transaction.

      “We are very pleased with our results for 2004,” said Dave Hoyt, Group EVP, Wholesale Banking. “Our net income increased 11 percent on a year over year basis. Our team achieved its third consecutive quarter of solid loan growth after a period of virtually flat loan balances for three years. Our businesses delivered double-digit noninterest income growth year over year. We continued to generate growth through solid new customer relationships and our focus on cross sell. We also benefited from exceptionally strong credit results. Wholesale Banking has delivered record profits for six consecutive years and during that time we have grown at a 12 percent compound rate. We’re particularly proud of these long term results as they include a number of years when the economy was very difficult. The acquisition of assets under management from Strong Financial closed at year-end 2004. We have hired 650 of the former Strong Financial employees in Menomonee Falls, Wisconsin and substantially all of the portfolio managers. Wells Fargo mutual funds now total $100 billion in assets under management making us one of the top 20 mutual fund companies in the country.”

      Wells Fargo Financialoffers consumer installment and home equity lending, automobile financing, consumer and private-label credit cards and commercial services to consumers and businesses throughout the United States, and in Canada, Latin America, the Caribbean, Guam and Saipan.

Selected Financial Information	Full Year						Fourth Quarter
					%						%
(in millions)	2004		2003		Change		2004		2003		Change
Total revenue	$	3,178	$	2,689		18	$	860	$	734		17
Provision for credit losses		797		623		28		222		176		26
Noninterest expense		1,590		1,343		18		439		370		19
Net income		507		451		12		129		119		8
Average loans (in billions)	$	29.5	$	20.4		45	$	33.1	$	23.5		41
Average assets (in billions)		31.2		22.2		41		35.1		25.3		39

• Record annual net income: $507 million, up 12 percent from 2003

• Average loans: up 41 percent from fourth quarter 2003

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• Sound credit quality: lower delinquencies and loan loss rates from a year ago

• Investments for future growth

• Opened 73 new stores in 2004

• Added 2,579 team members in 2004, up 16 percent from a year ago

      Wells Fargo Financial reported record net income of $507 million in 2004, up 12 percent from $451 million in 2003. The 2004 results reflected a strong increase in real estate secured loans and auto lending, as average loans reached $29.5 billion, an increase of 45 percent over the prior year. Total revenue rose 18 percent in 2004, reaching $3,178 million, compared with $2,689 million in 2003 on higher net interest income. Wells Fargo Financial’s provision for credit losses was $797 million in 2004, up from $623 million in 2003, reflecting the overall increase in loans and expected seasoning in the loan portfolio. Noninterest expense was $1,590 million in 2004, up from $1,343 million in 2003, reflecting investments in new consumer finance stores and additional team members.

      For fourth quarter 2004, Wells Fargo Financial’s net income was $129 million, compared with $119 million in the same period of 2003, an increase of 8 percent. The fourth quarter 2004 results reflected a 17 percent increase in revenue, primarily in net interest income due to a 41 percent increase in average loans, partially offset by a higher level of noninterest expense and provision for credit losses. Average loans were $33.1 billion in fourth quarter 2004 compared with $23.5 billion in fourth quarter 2003.

      “Our receivables growth of $9.7 billion in 2004 was driven primarily by real estate-secured lending receivables growth of $5.1 billion and auto lending receivables growth of $3.3 billion,” said Tom Shippee, president and CEO of Wells Fargo Financial. “We opened 73 consumer stores and increased our team member total 16 percent. The growth of our business — surpassing half a billion dollars in net earnings for the first time — is the result of our continued investment in the business. We also invested in the systems, governance and infrastructure needed to support our continued asset growth. Losses have increased consistent with the loan growth and product mix. We have maintained consistent credit quality standards and expect a measured increase in losses as the various loan portfolios season. Loss rates by product remained within acceptable and anticipated ranges.”

Recorded Message

      A recorded message reviewing Wells Fargo’s results will be available at 5:30 a.m. Pacific time through January 21, 2005. Dial 800-642-1687 (domestic) or 706-645-9291 (international). Access code 3128015. The call is also available on the internet at www.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. 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,”

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“can,” “could,” “may,” “should,” “will,” “would” or similar expressions. Examples of forward-looking statements in this release include statements about future credit losses and credit quality, the estimated impact of expensing stock options on 2005 earnings per share, and the amount of integration expense expected to be incurred in 2005 for the Strong Financial transaction and the pending acquisition of First Community Capital Corporation, and the projected funding needs of the Wells Fargo Foundation over the next eight to ten years.

      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 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 September 30, 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-Q and Form 10-K include · business and economic conditions · fiscal and monetary policies · legislation and regulation · disintermediation · competition generally and in light of the Gramm-Leach-Bliley Act · 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 September 30, 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 $428 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores, the internet (wellsfargo.com) and other distribution channels across North America and elsewhere internationally.

-12-

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA

	Quarter ended Dec. 31					,	%			Year ended Dec. 31					,	%
(in millions, except per share amounts)	2004			2003			Change			2004			2003			Change
For the Period
Net income	$	1,785		$	1,624			10	%	$	7,014		$	6,202			13	%
Diluted earnings per common share		1.04			.95			10			4.09			3.65			12
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.67	%		1.67	%		—			1.71	%		1.64	%		4
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.07			19.20			(1	)		19.56			19.36			1
Efficiency ratio (1)		60.9			60.5			1			58.5			60.6			(3	)
Total revenue	$	8,168		$	7,445			10		$	30,059		$	28,389			6
Dividends declared per common share		.48			.45			7			1.86			1.50			24
Average common shares outstanding		1,692.7			1,690.2			—			1,692.2			1,681.1			1
Diluted average common shares outstanding		1,715.0			1,712.6			—			1,713.4			1,697.5			1
Average loans	$	281,167		$	235,986			19		$	269,570		$	213,132			26
Average assets		425,259			384,744			11			410,579			377,613			9
Average core deposits (2)		230,249			210,026			10			223,359			207,046			8
Average retail core deposits (3)		189,788			172,603			10			183,716			165,881			11
Net interest margin		4.88	%		4.97	%		(2	)		4.89	%		5.08	%		(4	)
At Period End
Securities available for sale	$	33,717		$	32,953			2		$	33,717		$	32,953			2
Loans		287,586			253,073			14			287,586			253,073			14
Allowance for loan losses		3,762			3,891			(3	)		3,762			3,891			(3	)
Goodwill		10,681			10,371			3			10,681			10,371			3
Assets		427,849			387,798			10			427,849			387,798			10
Core deposits		229,703			211,271			9			229,703			211,271			9
Stockholders’ equity		37,866			34,469			10			37,866			34,469			10
Capital ratios
Stockholders’ equity to assets		8.85	%		8.89	%		—			8.85	%		8.89	%		—
Risk-based capital (4)
Tier 1 capital		8.42			8.42			—			8.42			8.42			—
Total capital		12.08			12.21			(1	)		12.08			12.21			(1	)
Tier 1 leverage (4)		7.08			6.93			2			7.08			6.93			2
Book value per common share	$	22.36		$	20.31			10		$	22.36		$	20.31			10
Team members (active, full-time equivalent)		145,500			140,000			4			145,500			140,000			4
Common Stock Price
High	$	64.04		$	59.18			8		$	64.04		$	59.18			8
Low		57.55			51.68			11			54.32			43.27			26
Period end		62.15			58.89			6			62.15			58.89			6

(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)	Retail core deposits consist of total core deposits excluding Wholesale core deposits and mortgage escrow deposits.
(4)	The December 31, 2004 ratios are preliminary.

-13-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions, except per share amounts)	2004			2004			2004			2004			2003
For the Quarter
Net income	$	1,785		$	1,748		$	1,714		$	1,767		$	1,624
Diluted earnings per common share		1.04			1.02			1.00			1.03			.95
Profitability ratios (annualized)
Net income to average total assets (ROA)		1.67	%		1.66	%		1.68	%		1.84	%		1.67	%
Net income applicable to common stock to average common stockholders’ equity (ROE)		19.07			19.34			19.57			20.31			19.20
Efficiency ratio (1)		60.9			57.7			58.6			56.4			60.5
Total revenue	$	8,168		$	7,318		$	7,426		$	7,147		$	7,445
Dividends declared per common share		.48			.48			.45			.45			.45
Average common shares outstanding		1,692.7			1,688.9			1,688.1			1,699.3			1,690.2
Diluted average common shares outstanding		1,715.0			1,708.7			1,708.3			1,721.2			1,712.6
Average loans	$	281,167		$	274,255		$	266,231		$	256,448		$	235,986
Average assets		425,259			419,636			410,544			386,614			384,744
Average core deposits (2)		230,249			225,027			224,920			213,146			210,026
Average retail core deposits (3)		189,788			186,175			182,613			176,194			172,603
Net interest margin		4.88	%		4.89	%		4.83	%		4.94	%		4.97	%
At Quarter End
Securities available for sale	$	33,717		$	35,121		$	36,771		$	32,857		$	32,953
Loans		287,586			279,310			269,731			264,216			253,073
Allowance for loan losses		3,762			3,782			3,940			3,891			3,891
Goodwill		10,681			10,431			10,430			10,403			10,371
Assets		427,849			421,549			420,305			397,354			387,798
Core deposits		229,703			224,946			222,166			220,105			211,271
Stockholders’ equity		37,866			36,680			35,478			35,442			34,469
Capital ratios
Stockholders’ equity to assets		8.85	%		8.70	%		8.44	%		8.92	%		8.89	%
Risk-based capital (4)
Tier 1 capital		8.42			8.40			8.24			8.48			8.42
Total capital		12.08			12.15			11.86			12.18			12.21
Tier 1 leverage (4)		7.08			6.97			6.84			7.13			6.93
Book value per common share	$	22.36		$	21.71		$	21.03		$	20.90		$	20.31
Team members (active, full-time equivalent)		145,500			143,700			142,600			139,900			140,000
Common Stock Price
High	$	64.04		$	59.86		$	59.72		$	58.98		$	59.18
Low		57.55			56.12			54.32			55.97			51.68
Period end		62.15			59.63			57.23			56.67			58.89

(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)	Retail core deposits consist of total core deposits excluding Wholesale core deposits and mortgage escrow deposits.
(4)	The December 31, 2004 ratios are preliminary.

-14-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME

	Quarter ended Dec. 31				,	%			Year ended Dec. 31					,	%
(in millions, except per share amounts)	2004		2003			Change			2004			2003			Change
INTEREST INCOME
Trading assets	$	34	$	47			(28	)%	$	145		$	156			(7	)%
Securities available for sale		485		458			6			1,883			1,816			4
Mortgages held for sale		443		551			(20	)		1,737			3,136			(45	)
Loans held for sale		87		60			45			292			251			16
Loans		4,542		3,713			22			16,781			13,937			20
Other interest income		44		27			63			129			122			6
Total interest income		5,635		4,856			16			20,967			19,418			8
INTEREST EXPENSE
Deposits		576		377			53			1,827			1,613			13
Short-term borrowings		126		68			85			353			322			10
Long-term debt		477		335			42			1,637			1,355			21
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—		32			(100	)		—			121			(100	)
Total interest expense		1,179		812			45			3,817			3,411			12
NET INTEREST INCOME		4,456		4,044			10			17,150			16,007			7
Provision for credit losses		465		465			—			1,717			1,722			—
Net interest income after provision for credit losses		3,991		3,579			12			15,433			14,285			8
NONINTEREST INCOME
Service charges on deposit accounts		594		595			—			2,417			2,297			5
Trust and investment fees		543		504			8			2,116			1,937			9
Card fees		321		273			18			1,230			1,079			14
Other fees		479		409			17			1,779			1,560			14
Mortgage banking		790		636			24			1,860			2,512			(26	)
Operating leases		211		211			—			836			937			(11	)
Insurance		265		264			—			1,193			1,071			11
Net gains (losses) on debt securities available for sale		3		(12	)		—			(15	)		4			—
Net gains from equity investments		170		143			19			394			55			616
Other		336		378			(11	)		1,099			930			18
Total noninterest income		3,712		3,401			9			12,909			12,382			4
NONINTEREST EXPENSE
Salaries		1,438		1,351			6			5,393			4,832			12
Incentive compensation		526		483			9			1,807			2,054			(12	)
Employee benefits		451		417			8			1,724			1,560			11
Equipment		410		375			9			1,236			1,246			(1	)
Net occupancy		301		310			(3	)		1,208			1,177			3
Operating leases		164		162			1			633			702			(10	)
Other		1,681		1,402			20			5,572			5,619			(1	)
Total noninterest expense		4,971		4,500			10			17,573			17,190			2
INCOME BEFORE INCOME TAX EXPENSE		2,732		2,480			10			10,769			9,477			14
Income tax expense		947		856			11			3,755			3,275			15
NET INCOME	$	1,785	$	1,624			10	%	$	7,014		$	6,202			13	%
EARNINGS PER COMMON SHARE	$	1.06	$	.96			10	%	$	4.15		$	3.69			12	%
DILUTED EARNINGS PER COMMON SHARE	$	1.04	$	.95			10	%	$	4.09		$	3.65			12	%
DIVIDENDS DECLARED PER COMMON SHARE	$	.48	$	.45			7	%	$	1.86		$	1.50			24	%
Average common shares outstanding		1,692.7		1,690.2			—	%		1,692.2			1,681.1			1	%
Diluted average common shares outstanding		1,715.0		1,712.6			—	%		1,713.4			1,697.5			1	%

-15-

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

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions, except per share amounts)	2004			2004			2004			2004			2003
INTEREST INCOME
Trading assets	$	34		$	38		$	39		$	34		$	47
Securities available for sale		485			496			457			445			458
Mortgages held for sale		443			490			470			334			551
Loans held for sale		87			76			66			63			60
Loans		4,542			4,271			4,011			3,957			3,713
Other interest income		44			34			26			25			27
Total interest income		5,635			5,405			5,069			4,858			4,856
INTEREST EXPENSE
Deposits		576			487			394			370			377
Short-term borrowings		126			105			59			63			68
Long-term debt		477			395			390			375			335
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			—			—			32
Total interest expense		1,179			987			843			808			812
NET INTEREST INCOME		4,456			4,418			4,226			4,050			4,044
Provision for credit losses		465			408			440			404			465
Net interest income after provision for credit losses		3,991			4,010			3,786			3,646			3,579
NONINTEREST INCOME
Service charges on deposit accounts		594			618			611			594			595
Trust and investment fees		543			508			530			535			504
Card fees		321			319			308			282			273
Other fees		479			452			437			411			409
Mortgage banking		790			262			493			315			636
Operating leases		211			207			209			209			211
Insurance		265			264			347			317			264
Net gains (losses) on debt securities available for sale		3			10			(61	)		33			(12	)
Net gains from equity investments		170			48			81			95			143
Other		336			212			245			306			378
Total noninterest income		3,712			2,900			3,200			3,097			3,401
NONINTEREST EXPENSE
Salaries		1,438			1,383			1,295			1,277			1,351
Incentive compensation		526			449			441			391			483
Employee benefits		451			390			391			492			417
Equipment		410			254			271			301			375
Net occupancy		301			309			304			294			310
Operating leases		164			158			156			155			162
Other		1,681			1,277			1,495			1,119			1,402
Total noninterest expense		4,971			4,220			4,353			4,029			4,500
INCOME BEFORE INCOME TAX EXPENSE		2,732			2,690			2,633			2,714			2,480
Income tax expense		947			942			919			947			856
NET INCOME	$	1,785		$	1,748		$	1,714		$	1,767		$	1,624
EARNINGS PER COMMON SHARE	$	1.06		$	1.03		$	1.02		$	1.04		$	.96
DILUTED EARNINGS PER COMMON SHARE	$	1.04		$	1.02		$	1.00		$	1.03		$	.95
DIVIDENDS DECLARED PER COMMON SHARE	$	.48		$	.48		$	.45		$	.45		$	.45
Average common shares outstanding		1,692.7			1,688.9			1,688.1			1,699.3			1,690.2
Diluted average common shares outstanding		1,715.0			1,708.7			1,708.3			1,721.2			1,712.6

-16-

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET

	December 31					,	%
(in millions, except shares)	2004			2003			Change
ASSETS
Cash and due from banks	$	12,903		$	15,547			(17	)%
Federal funds sold, securities purchased under resale agreements and other short-term investments		5,020			3,733			34
Trading assets		9,000			8,919			1
Securities available for sale		33,717			32,953			2
Mortgages held for sale		29,723			29,027			2
Loans held for sale		8,739			7,497			17
Loans		287,586			253,073			14
Allowance for loan losses		(3,762	)		(3,891	)		(3	)
Net loans		283,824			249,182			14
Mortgage servicing rights, net		7,901			6,906			14
Premises and equipment, net		3,850			3,534			9
Goodwill		10,681			10,371			3
Other assets		22,491			20,129			12
Total assets	$	427,849		$	387,798			10	%
LIABILITIES
Noninterest-bearing deposits	$	81,082		$	74,387			9	%
Interest-bearing deposits		193,776			173,140			12
Total deposits		274,858			247,527			11
Short-term borrowings		21,962			24,659			(11	)
Accrued expenses and other liabilities		19,583			17,501			12
Long-term debt		73,580			63,642			16
Total liabilities		389,983			353,329			10
STOCKHOLDERS’ EQUITY
Preferred stock		270			214			26
Common stock - - $1-2/3 par value, authorized 6,000,000,000 shares; issued 1,736,381,025 shares		2,894			2,894			—
Additional paid-in capital		9,806			9,643			2
Retained earnings		26,482			22,842			16
Cumulative other comprehensive income		950			938			1
Treasury stock - 41,789,388 shares and 38,271,651 shares		(2,247	)		(1,833	)		23
Unearned ESOP shares		(289	)		(229	)		26
Total stockholders’ equity		37,866			34,469			10
Total liabilities and stockholders’ equity	$	427,849		$	387,798			10	%

-17-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET

	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions)	2004			2004			2004			2004			2003
ASSETS
Cash and due from banks	$	12,903		$	13,249		$	13,449		$	13,972		$	15,547
Federal funds sold, securities purchased under resale agreements and other short-term investments		5,020			5,029			4,222			3,206			3,733
Trading assets		9,000			8,107			7,238			10,538			8,919
Securities available for sale		33,717			35,121			36,771			32,857			32,953
Mortgages held for sale		29,723			30,783			39,424			26,361			29,027
Loans held for sale		8,739			8,434			8,156			8,037			7,497
Loans		287,586			279,310			269,731			264,216			253,073
Allowance for loan losses		(3,762	)		(3,782	)		(3,940	)		(3,891	)		(3,891	)
Net loans		283,824			275,528			265,791			260,325			249,182
Mortgage servicing rights, net		7,901			7,768			8,512			6,097			6,906
Premises and equipment, net		3,850			3,722			3,627			3,545			3,534
Goodwill		10,681			10,431			10,430			10,403			10,371
Other assets		22,491			23,377			22,685			22,013			20,129
Total assets	$	427,849		$	421,549		$	420,305		$	397,354		$	387,798
LIABILITIES
Noninterest-bearing deposits	$	81,082		$	79,090		$	78,926		$	78,253		$	74,387
Interest-bearing deposits		193,776			189,697			189,199			170,116			173,140
Total deposits		274,858			268,787			268,125			248,369			247,527
Short-term borrowings		21,962			24,278			29,831			20,397			24,659
Accrued expenses and other liabilities		19,583			20,484			21,266			19,756			17,501
Long-term debt		73,580			71,320			65,605			73,390			63,642
Total liabilities		389,983			384,869			384,827			361,912			353,329
STOCKHOLDERS’ EQUITY
Preferred stock		270			325			387			452			214
Common stock		2,894			2,894			2,894			2,894			2,894
Additional paid-in capital		9,806			9,767			9,744			9,711			9,643
Retained earnings		26,482			25,564			24,669			23,796			22,842
Cumulative other comprehensive income		950			914			735			1,057			938
Treasury stock		(2,247	)		(2,436	)		(2,537	)		(1,984	)		(1,833	)
Unearned ESOP shares		(289	)		(348	)		(414	)		(484	)		(229	)
Total stockholders’ equity		37,866			36,680			35,478			35,442			34,469
Total liabilities and stockholders’ equity	$	427,849		$	421,549		$	420,305		$	397,354		$	387,798

-18-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES

	Quarter ended
	Dec, 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions)	2004			2004			2004			2004			2003
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	4,967		$	4,864		$	3,662		$	3,509		$	3,217
Trading assets		5,040			4,869			5,296			5,946			6,936
Debt securities available for sale:
Securities of U.S. Treasury and federal agencies		1,101			1,132			1,190			1,224			1,278
Securities of U.S. states and political subdivisions		3,624			3,586			3,456			3,338			3,141
Mortgage-backed securities:
Federal agencies		21,916			22,965			20,076			20,635			21,149
Private collateralized mortgage obligations		3,787			3,836			4,077			2,713			2,014
Total mortgage-backed securities		25,703			26,801			24,153			23,348			23,163
Other debt securities (1)		3,246			3,443			3,346			3,543			3,478
Total debt securities available for sale (1)		33,674			34,962			32,145			31,453			31,060
Mortgages held for sale		32,373			34,844			36,782			25,023			41,055
Loans held for sale		8,536			8,276			8,074			7,911			7,373
Loans:
Commercial and commercial real estate:
Commercial		51,896			49,517			48,711			47,305			47,674
Other real estate mortgage		29,412			29,025			28,586			27,801			26,691
Real estate construction		9,246			8,949			8,428			8,264			8,151
Lease financing		5,109			5,084			5,027			5,053			4,508
Total commercial and commercial real estate		95,663			92,575			90,752			88,423			87,024
Consumer:
Real estate 1-4 family first mortgage		86,389			88,689			89,351			86,375			71,402
Real estate 1-4 family junior lien mortgage		50,909			46,367			41,964			38,328			35,152
Credit card		9,706			8,948			8,508			8,338			8,013
Other revolving credit and installment		34,475			34,168			32,975			32,477			31,975
Total consumer		181,479			178,172			172,798			165,518			146,542
Foreign		4,025			3,508			2,681			2,507			2,420
Total loans (2)		281,167			274,255			266,231			256,448			235,986
Other		1,698			1,683			1,702			1,754			1,715
Total earning assets	$	367,455		$	363,753		$	353,892		$	332,044		$	327,342
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	3,244		$	3,017		$	3,011		$	2,962		$	2,744
Market rate and other savings		125,350			124,090			121,647			117,373			112,392
Savings certificates		18,697			18,490			18,724			19,495			19,949
Other time deposits		30,460			36,089			29,654			22,719			26,382
Deposits in foreign offices		10,026			8,856			9,306			7,171			5,992
Total interest-bearing deposits		187,777			190,542			182,342			169,720			167,459
Short-term borrowings		26,315			29,840			22,689			25,630			28,367
Long-term debt		70,646			65,443			71,085			64,416			58,814
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			—			—			3,591
Total interest-bearing liabilities		284,738			285,825			276,116			259,766			258,231
Portion of noninterest-bearing funding sources		82,717			77,928			77,776			72,278			69,111
Total funding sources	$	367,455		$	363,753		$	353,892		$	332,044		$	327,342
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,366		$	12,704		$	12,997		$	13,152		$	13,083
Goodwill		10,436			10,431			10,413			10,394			10,209
Other		34,002			32,748			33,242			31,024			34,110
Total noninterest-earning assets	$	57,804		$	55,883		$	56,652		$	54,570		$	57,402
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	82,958		$	79,430		$	81,538		$	73,316		$	74,941
Other liabilities		20,336			18,435			17,700			18,572			18,000
Stockholders’ equity		37,227			35,946			35,190			34,960			33,572
Noninterest-bearing funding sources used to fund earning assets		(82,717	)		(77,928	)		(77,776	)		(72,278	)		(69,111	)
Net noninterest-bearing funding sources	$	57,804		$	55,883		$	56,652		$	54,570		$	57,402
TOTAL ASSETS	$	425,259		$	419,636		$	410,544		$	386,614		$	384,744

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

-19-

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

	Year ended Dec. 31					,
(in millions)	2004			2003
Balance, beginning of period	$	34,469		$	30,319
Net income		7,014			6,202
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments		12			26
Change in valuation allowance related to:
Investment securities and other retained interests		(22	)		(117	)
Derivative instruments and hedging activities		22			53
Common stock issued		1,446			1,094
Common stock issued for acquisitions		9			651
Common stock repurchased		(2,188	)		(1,482	)
Preferred stock released to ESOP		265			224
Preferred stock redeemed		—			(73	)
Preferred stock dividends		—			(3	)
Common stock dividends		(3,150	)		(2,527	)
Other, net		(11	)		102
Balance, end of period	$	37,866		$	34,469

-20-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS

	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions)	2004			2004			2004			2004			2003
Commercial and commercial real estate:
Commercial	$	54,517		$	50,750		$	49,962		$	48,034		$	48,729
Other real estate mortgage		29,804			29,406			28,975			28,323			27,592
Real estate construction		9,025			9,211			8,646			8,259			8,209
Lease financing		5,169			5,075			5,045			5,018			4,477
Total commercial and commercial real estate		98,515			94,442			92,628			89,634			89,007
Consumer:
Real estate 1-4 family first mortgage		87,686			87,587			87,776			90,563			83,535
Real estate 1-4 family junior lien mortgage		52,190			49,557			44,289			40,281			36,629
Credit card		10,260			9,439			8,692			8,357			8,351
Other revolving credit and installment		34,725			34,435			33,458			32,755			33,100
Total consumer		184,861			181,018			174,215			171,956			161,615
Foreign		4,210			3,850			2,888			2,626			2,451
Total loans (net of unearned income)	$	287,586		$	279,310		$	269,731		$	264,216		$	253,073

FIVE QUARTER NONACCRUAL LOANS AND OTHER ASSETS

	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions)	2004			2004			2004			2004			2003
Nonaccrual loans:
Commercial and commercial real estate:
Commercial	$	345		$	382		$	422		$	514		$	592
Other real estate mortgage		229			258			324			263			285
Real estate construction		57			59			72			71			56
Lease financing		68			54			55			74			73
Total commercial and commercial real estate		699			753			873			922			1,006
Consumer:
Real estate 1-4 family first mortgage		386			360			317			281			274
Real estate 1-4 family junior lien mortgage		92			93			86			96			87
Other revolving credit and installment		160			155			97			85			88
Total consumer		638			608			500			462			449
Foreign		21			16			6			3			3
Total nonaccrual loans		1,358			1,377			1,379			1,387			1,458
As a percentage of total loans		.47	%		.49	%		.51	%		.52	%		.58	%
Foreclosed assets		212			190			235			222			198
Real estate investments		2			2			2			2			6
Total nonaccrual loans and other assets	$	1,572		$	1,569		$	1,616		$	1,611		$	1,662
As a percentage of total loans		.55	%		.56	%		.60	%		.61	%		.66	%

-21-

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

	Quarter ended									Year ended
	Dec. 31		,	Sept. 30		,	Dec. 31		,	Dec. 31		,	Dec. 31		,
(in millions)	2004			2004			2003			2004			2003
Balance, beginning of period	$	3,945		$	3,940		$	3,854		$	3,891		$	3,819
Allowances related to business combinations/other		5			4			37			8			69
Provision for credit losses		465			408			465			1,717			1,722
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(103	)		(98	)		(161	)		(424	)		(597	)
Other real estate mortgage		(7	)		(4	)		(10	)		(25	)		(33	)
Real estate construction		(1	)		(1	)		(3	)		(5	)		(11	)
Lease financing		(14	)		(24	)		(10	)		(62	)		(41	)
Total commercial and commercial real estate		(125	)		(127	)		(184	)		(516	)		(682	)
Consumer:
Real estate 1-4 family first mortgage		(15	)		(14	)		(15	)		(53	)		(47	)
Real estate 1-4 family junior lien mortgage		(31	)		(20	)		(23	)		(107	)		(77	)
Credit card		(126	)		(109	)		(139	)		(463	)		(476	)
Other revolving credit and installment		(250	)		(233	)		(224	)		(919	)		(827	)
Total consumer		(422	)		(376	)		(401	)		(1,542	)		(1,427	)
Foreign		(48	)		(37	)		(30	)		(143	)		(105	)
Total loan charge-offs		(595	)		(540	)		(615	)		(2,201	)		(2,214	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		33			31			72			150			177
Other real estate mortgage		3			8			4			17			11
Real estate construction		1			3			1			6			11
Lease financing		7			7			2			26			8
Total commercial and commercial real estate		44			49			79			199			207
Consumer:
Real estate 1-4 family first mortgage		2			1			1			6			10
Real estate 1-4 family junior lien mortgage		7			6			1			24			13
Credit card		17			15			13			62			50
Other revolving credit and installment		53			56			51			220			196
Total consumer		79			78			66			312			269
Foreign		7			6			5			24			19
Total loan recoveries		130			133			150			535			495
Net loan charge-offs		(465	)		(407	)		(465	)		(1,666	)		(1,719	)
Balance, end of period	$	3,950		$	3,945		$	3,891		$	3,950		$	3,891
Components:
Allowance for loan losses	$	3,762		$	3,782		$	3,891		$	3,762		$	3,891
Reserve for unfunded credit commitments (1)		188			163			—			188			—
Allowance for credit losses	$	3,950		$	3,945		$	3,891		$	3,950		$	3,891
Net loan charge-offs (annualized) as a percentage of average total loans		.66	%		.59	%		.78	%		.62	%		.81	%

(1) Effective September 30, 2004, we reclassified the portion of the allowance for loan losses related to commercial lending commitments and letters of credit, or $163 million, to other liabilities.

-22-

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

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions)	2004			2004			2004			2004			2003
Balance, beginning of quarter	$	3,945		$	3,940		$	3,891		$	3,891		$	3,854
Allowances related to business combinations/other		5			4			(1	)		—			37
Provision for credit losses		465			408			440			404			465
Loan charge-offs:
Commercial and commercial real estate:
Commercial		(103	)		(98	)		(112	)		(111	)		(161	)
Other real estate mortgage		(7	)		(4	)		(7	)		(7	)		(10	)
Real estate construction		(1	)		(1	)		—			(3	)		(3	)
Lease financing		(14	)		(24	)		(12	)		(12	)		(10	)
Total commercial and commercial real estate		(125	)		(127	)		(131	)		(133	)		(184	)
Consumer:
Real estate 1-4 family first mortgage		(15	)		(14	)		(11	)		(13	)		(15	)
Real estate 1-4 family junior lien mortgage		(31	)		(20	)		(27	)		(29	)		(23	)
Credit card		(126	)		(109	)		(119	)		(109	)		(139	)
Other revolving credit and installment		(250	)		(233	)		(212	)		(224	)		(224	)
Total consumer		(422	)		(376	)		(369	)		(375	)		(401	)
Foreign		(48	)		(37	)		(30	)		(28	)		(30	)
Total loan charge-offs		(595	)		(540	)		(530	)		(536	)		(615	)
Loan recoveries:
Commercial and commercial real estate:
Commercial		33			31			44			42			72
Other real estate mortgage		3			8			4			2			4
Real estate construction		1			3			1			1			1
Lease financing		7			7			6			6			2
Total commercial and commercial real estate		44			49			55			51			79
Consumer:
Real estate 1-4 family first mortgage		2			1			2			1			1
Real estate 1-4 family junior lien mortgage		7			6			7			4			1
Credit card		17			15			15			15			13
Other revolving credit and installment		53			56			55			56			51
Total consumer		79			78			79			76			66
Foreign		7			6			6			5			5
Total loan recoveries		130			133			140			132			150
Net loan charge-offs		(465	)		(407	)		(390	)		(404	)		(465	)
Balance, end of quarter	$	3,950		$	3,945		$	3,940		$	3,891		$	3,891
Components:
Allowance for loan losses	$	3,762		$	3,782		$	3,940		$	3,891		$	3,891
Reserve for unfunded credit commitments (1)		188			163			—			—			—
Allowance for credit losses	$	3,950		$	3,945		$	3,940		$	3,891		$	3,891
Net loan charge-offs (annualized) as a percentage of average total loans		.66	%		.59	%		.59	%		.63	%		.78	%
Allowance for loan losses:
As a percentage of total loans		1.31	%		1.35	%		1.46	%		1.47	%		1.54	%
As a percentage of nonaccrual loans		277			275			286			281			267
As a percentage of nonaccrual loans and other assets		239			241			244			242			234
Allowance for credit losses:
As a percentage of total loans		1.37	%		1.41	%		1.46	%		1.47	%		1.54	%
As a percentage of nonaccrual loans		291			286			286			281			267
As a percentage of nonaccrual loans and other assets		251			251			244			242			234

(1) Effective September 30, 2004, we reclassified the portion of the allowance for loan losses related to commercial lending commitments and letters of credit, or $163 million, to other liabilities.

-23-

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME

	Quarter ended Dec. 31					,	%			Year ended Dec. 31					,	%
(in millions)	2004			2003			Change			2004			2003			Change
Service charges on deposit accounts	$	594		$	595			—	%	$	2,417		$	2,297			5	%
Trust and investment fees:
Trust, investment and IRA fees		385			350			10			1,509			1,345			12
Commissions and all other fees		158			154			3			607			592			3
Total trust and investment fees		543			504			8			2,116			1,937			9
Card fees		321			273			18			1,230			1,079			14
Other fees:
Cash network fees		44			44			—			180			179			1
Charges and fees on loans		252			191			32			921			756			22
All other		183			174			5			678			625			8
Total other fees		479			409			17			1,779			1,560			14
Mortgage banking:
Servicing fees, net of amortization and provision for impairment		434			312			39			1,037			(954	)		—
Net gains on mortgage loan origination/sales activities		281			229			23			539			3,019			(82	)
All other		75			95			(21	)		284			447			(36	)
Total mortgage banking		790			636			24			1,860			2,512			(26	)
Operating leases		211			211			—			836			937			(11	)
Insurance		265			264			—			1,193			1,071			11
Trading assets		185			157			18			523			502			4
Net gains (losses) on debt securities available for sale		3			(12	)		—			(15	)		4			—
Net gains from equity investments		170			143			19			394			55			616
Net gains on sales of loans		4			5			(20	)		11			28			(61	)
Net gains (losses) on dispositions of operations		(17	)		2			—			(15	)		29			—
All other		164			214			(23	)		580			371			56
Total	$	3,712		$	3,401			9	%	$	12,909		$	12,382			4	%

NONINTEREST EXPENSE

	Quarter ended Dec. 31					,	%			Year ended Dec. 31				,	%
(in millions)	2004			2003			Change			2004		2003			Change
Salaries	$	1,438		$	1,351			6	%	$	5,393	$	4,832			12	%
Incentive compensation		526			483			9			1,807		2,054			(12	)
Employee benefits		451			417			8			1,724		1,560			11
Equipment		410			375			9			1,236		1,246			(1	)
Net occupancy		301			310			(3	)		1,208		1,177			3
Operating leases		164			162			1			633		702			(10	)
Outside professional services		229			164			40			669		509			31
Contract services		172			191			(10	)		626		866			(28	)
Advertising and promotion		144			118			22			459		392			17
Travel and entertainment		130			114			14			442		389			14
Outside data processing		104			98			6			418		404			3
Telecommunications		80			87			(8	)		296		343			(14	)
Postage		68			71			(4	)		269		336			(20	)
Charitable donations		224			21			967			248		237			5
Insurance		33			31			6			247		197			25
Stationery and supplies		63			68			(7	)		240		241			—
Operating losses		48			44			9			192		193			(1	)
Loss (gain) from debt extinguishment		(2	)		—			—			174		—			—
Security		41			38			8			161		163			(1	)
Core deposit intangibles		33			35			(6	)		134		142			(6	)
All other		314			322			(2	)		997		1,207			(17	)
Total	$	4,971		$	4,500			10	%	$	17,573	$	17,190			2	%

-24-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions)	2004			2004			2004			2004			2003
Service charges on deposit accounts	$	594		$	618		$	611		$	594		$	595
Trust and investment fees:
Trust, investment and IRA fees		385			366			383			375			350
Commissions and all other fees		158			142			147			160			154
Total trust and investment fees		543			508			530			535			504
Card fees		321			319			308			282			273
Other fees:
Cash network fees		44			47			46			43			44
Charges and fees on loans		252			234			224			211			191
All other		183			171			167			157			174
Total other fees		479			452			437			411			409
Mortgage banking:
Servicing fees, net of amortization and provision for impairment		434			(24	)		461			166			312
Net gains (losses) on mortgage loan origination/sales activities		281			212			(52	)		98			229
All other		75			74			84			51			95
Total mortgage banking		790			262			493			315			636
Operating leases		211			207			209			209			211
Insurance		265			264			347			317			264
Trading assets		185			94			101			143			157
Net gains (losses) on debt securities available for sale		3			10			(61	)		33			(12	)
Net gains from equity investments		170			48			81			95			143
Net gains on sales of loans		4			3			—			4			5
Net gains (losses) on dispositions of operations		(17	)		—			1			1			2
All other		164			115			143			158			214
Total	$	3,712		$	2,900		$	3,200		$	3,097		$	3,401

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions)	2004			2004			2004			2004			2003
Salaries	$	1,438		$	1,383		$	1,295		$	1,277		$	1,351
Incentive compensation		526			449			441			391			483
Employee benefits		451			390			391			492			417
Equipment		410			254			271			301			375
Net occupancy		301			309			304			294			310
Operating leases		164			158			156			155			162
Outside professional services		229			165			156			119			164
Contract services		172			154			157			143			191
Advertising and promotion		144			113			118			84			118
Travel and entertainment		130			110			105			97			114
Outside data processing		104			109			106			99			98
Telecommunications		80			73			62			81			87
Postage		68			63			63			75			71
Charitable donations		224			7			10			7			21
Insurance		33			47			96			71			31
Stationery and supplies		63			57			60			60			68
Operating losses		48			45			82			17			44
Loss (gain) from debt extinguishment		(2	)		—			176			—			—
Security		41			40			40			40			38
Core deposit intangibles		33			33			34			34			35
All other		314			261			230			192			322
Total	$	4,971		$	4,220		$	4,353		$	4,029		$	4,500

-25-

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

	Quarter ended Dec. 31																	,
	2004									2003
							Interest									Interest
	Average			Yields		/	income		/	Average			Yields		/	income		/
(in millions)	balance			rates			expense			balance			rates			expense
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	4,967			2.01	%	$	26		$	3,217			.99	%	$	8
Trading assets		5,040			2.73			34			6,936			2.72			48
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,101			3.72			10			1,278			4.39			14
Securities of U.S. states and political subdivisions		3,624			8.31			71			3,141			8.02			60
Mortgage-backed securities:
Federal agencies		21,916			6.08			321			21,149			6.25			318
Private collateralized mortgage obligations		3,787			5.35			49			2,014			5.53			27
Total mortgage-backed securities		25,703			5.97			370			23,163			6.19			345
Other debt securities (4)		3,246			7.91			59			3,478			7.69			60
Total debt securities available for sale (4)		33,674			6.32			510			31,060			6.46			479
Mortgages held for sale (3)		32,373			5.48			443			41,055			5.36			551
Loans held for sale (3)		8,536			4.05			87			7,373			3.22			60
Loans:
Commercial and commercial real estate:
Commercial		51,896			5.93			774			47,674			5.93			712
Other real estate mortgage		29,412			5.67			419			26,691			5.25			353
Real estate construction		9,246			5.80			135			8,151			4.96			102
Lease financing		5,109			5.84			75			4,508			6.13			69
Total commercial and commercial real estate		95,663			5.84			1,403			87,024			5.64			1,236
Consumer:
Real estate 1-4 family first mortgage		86,389			5.70			1,233			71,402			5.32			952
Real estate 1-4 family junior lien mortgage		50,909			5.54			709			35,152			5.28			467
Credit card		9,706			11.57			281			8,013			11.85			237
Other revolving credit and installment		34,475			8.99			779			31,975			8.91			716
Total consumer		181,479			6.59			3,002			146,542			6.45			2,372
Foreign		4,025			14.00			141			2,420			17.74			107
Total loans (5)		281,167			6.44			4,546			235,986			6.27			3,715
Other		1,698			4.19			17			1,715			4.31			18
Total earning assets	$	367,455			6.16			5,663		$	327,342			5.96			4,879
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	3,244			.68			5		$	2,744			.21			1
Market rate and other savings		125,350			.83			262			112,392			.61			172
Savings certificates		18,697			2.32			108			19,949			2.31			116
Other time deposits		30,460			1.98			152			26,382			1.10			73
Deposits in foreign offices		10,026			1.95			49			5,992			.99			15
Total interest-bearing deposits		187,777			1.22			576			167,459			.89			377
Short-term borrowings		26,315			1.90			126			28,367			.95			68
Long-term debt		70,646			2.70			477			58,814			2.27			335
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			—			3,591			3.60			32
Total interest-bearing liabilities		284,738			1.65			1,179			258,231			1.25			812
Portion of noninterest-bearing funding sources		82,717			—			—			69,111			—			—
Total funding sources	$	367,455			1.28			1,179		$	327,342			.99			812
Net interest margin and net interest income on a taxable-equivalent basis(6)					4.88	%	$	4,484						4.97	%	$	4,067
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,366								$	13,083
Goodwill		10,436									10,209
Other		34,002									34,110
Total noninterest-earning assets	$	57,804								$	57,402
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	82,958								$	74,941
Other liabilities		20,336									18,000
Stockholders’ equity		37,227									33,572
Noninterest-bearing funding sources used to fund earning assets		(82,717	)								(69,111	)
Net noninterest-bearing funding sources	$	57,804								$	57,402
TOTAL ASSETS	$	425,259								$	384,744

(1)	Our average prime rate was 4.94% and 4.00% for the quarters ended December 31, 2004 and 2003, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.30% and 1.17% 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.

-26-

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

	Year ended Dec. 31																	,
	2004									2003
							Interest									Interest
	Average			Yields		/	income		/	Average			Yields		/	income		/
(in millions)	balance			rates			expense			balance			rates			expense
EARNING ASSETS
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	4,254			1.49	%	$	64		$	4,174			1.16	%	$	49
Trading assets		5,286			2.75			145			6,110			2.56			156
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies		1,161			4.05			46			1,286			4.74			58
Securities of U.S. states and political subdivisions		3,501			8.00			267			2,424			8.62			196
Mortgage-backed securities:
Federal agencies		21,404			6.03			1,248			18,283			7.37			1,276
Private collateralized mortgage obligations		3,604			5.16			180			2,001			6.24			120
Total mortgage-backed securities		25,008			5.91			1,428			20,284			7.26			1,396
Other debt securities (4)		3,395			7.72			236			3,302			7.75			240
Total debt securities available for sale (4)		33,065			6.24			1,977			27,296			7.32			1,890
Mortgages held for sale (3)		32,263			5.38			1,737			58,672			5.34			3,136
Loans held for sale (3)		8,201			3.56			292			7,142			3.51			251
Loans:
Commercial and commercial real estate:
Commercial		49,365			5.77			2,848			47,279			6.08			2,876
Other real estate mortgage		28,708			5.35			1,535			25,846			5.44			1,405
Real estate construction		8,724			5.30			463			7,954			5.11			406
Lease financing		5,068			6.23			316			4,453			6.22			277
Total commercial and commercial real estate		91,865			5.62			5,162			85,532			5.80			4,964
Consumer:
Real estate 1-4 family first mortgage		87,700			5.44			4,772			56,252			5.54			3,115
Real estate 1-4 family junior lien mortgage		44,415			5.18			2,300			31,670			5.80			1,836
Credit card		8,878			11.80			1,048			7,640			12.06			922
Other revolving credit and installment		33,528			9.01			3,022			29,838			9.09			2,713
Total consumer		174,521			6.38			11,142			125,400			6.85			8,586
Foreign		3,184			15.30			487			2,200			18.00			396
Total loans (5)		269,570			6.23			16,791			213,132			6.54			13,946
Other		1,709			3.81			65			1,626			4.57			74
Total earning assets	$	354,348			5.97		$	21,071		$	318,152			6.16			19,502
FUNDING SOURCES
Deposits:
Interest-bearing checking	$	3,059			.44			13		$	2,571			.27			7
Market rate and other savings		122,129			.69			838			106,733			.66			705
Savings certificates		18,850			2.26			425			20,927			2.53			529
Other time deposits		29,750			1.43			427			25,388			1.20			305
Deposits in foreign offices		8,843			1.40			124			6,060			1.11			67
Total interest-bearing deposits		182,631			1.00			1,827			161,679			1.00			1,613
Short-term borrowings		26,130			1.35			353			29,898			1.08			322
Long-term debt		67,898			2.41			1,637			53,823			2.52			1,355
Guaranteed preferred beneficial interests in Company’s subordinated debentures		—			—			—			3,306			3.66			121
Total interest-bearing liabilities		276,659			1.38			3,817			248,706			1.37			3,411
Portion of noninterest-bearing funding sources		77,689			—			—			69,446			—			—
Total funding sources	$	354,348			1.08			3,817		$	318,152			1.08			3,411
Net interest margin and net interest income on a taxable-equivalent basis(6)					4.89	%	$	17,254						5.08	%	$	16,091
NONINTEREST-EARNING ASSETS
Cash and due from banks	$	13,055								$	13,433
Goodwill		10,418									9,905
Other		32,758									36,123
Total noninterest-earning assets	$	56,231								$	59,461
NONINTEREST-BEARING FUNDING SOURCES
Deposits	$	79,321								$	76,815
Other liabilities		18,764									20,030
Stockholders’ equity		35,835									32,062
Noninterest-bearing funding sources used to fund earning assets		(77,689	)								(69,446	)
Net noninterest-bearing funding sources	$	56,231								$	59,461
TOTAL ASSETS	$	410,579								$	377,613

(1)	Our average prime rate was 4.34% and 4.12% for the years ended December 31, 2004 and 2003, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.62% and 1.22% 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.

-27-

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 December 31,	2004		2003		2004		2003		2004		2003		2004			2003			2004		2003
Net interest income (1)	$	3,145	$	2,864	$	557	$	561	$	754	$	638	$	—		$	(19	)	$	4,456	$	4,044
Provision for credit losses		232		236		11		23		222		176		—			30			465		465
Noninterest income		2,782		2,544		799		750		106		96		25			11			3,712		3,401
Noninterest expense		3,814		3,385		718		694		439		370		—			51			4,971		4,500
Income (loss) before income tax expense (benefit)		1,881		1,787		627		594		199		188		25			(89	)		2,732		2,480
Income tax expense (benefit)		643		605		224		212		70		69		10			(30	)		947		856
Net income (loss)	$	1,238	$	1,182	$	403	$	382	$	129		119	$	15		$	(59	)	$	1,785	$	1,624
Average loans	$	191.7	$	162.7	$	56.4	$	49.8	$	33.1	$	23.5	$	—		$	—		$	281.2	$	236.0
Average assets		302.6		278.5		81.6		74.8		35.1		25.3		6.0			6.1			425.3		384.7
Average core deposits		204.0		186.3		26.1		23.6		.1		.1		—			—			230.2		210.0
Year ended December 31,
Net interest income (1)	$	12,153	$	11,495	$	2,209	$	2,228	$	2,793	$	2,311	$	(5	)	$	(27	)	$	17,150	$	16,007
Provision for credit losses		858		892		62		177		797		623		—			30			1,717		1,722
Noninterest income		9,360		9,218		3,070		2,766		385		378		94			20			12,909		12,382
Noninterest expense		13,077		13,214		2,728		2,579		1,590		1,343		178			54			17,573		17,190
Income (loss) before income tax expense (benefit)		7,578		6,607		2,489		2,238		791		723		(89	)		(91	)		10,769		9,477
Income tax expense (benefit)		2,611		2,243		890		792		284		272		(30	)		(32	)		3,755		3,275
Net income (loss)	$	4,967	$	4,364	$	1,599	$	1,446	$	507	$	451	$	(59	)	$	(59	)	$	7,014	$	6,202
Average loans	$	187.0	$	143.2	$	53.1	$	49.5	$	29.5	$	20.4	$	—		$	—		$	269.6	$	213.1
Average assets		295.8		273.5		77.6		75.8		31.2		22.2		6.0			6.1			410.6		377.6
Average core deposits		197.8		184.6		25.5		22.3		.1		.1		—			—			223.4		207.0

(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 second quarter of 2004, a $176 million loss on debt extinguishment and, for the fourth quarter of 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 principally comprise unallocated goodwill held at the enterprise level.

-28-

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(income/expense in millions, average balances in billions)	2004			2004			2004			2004			2003
COMMUNITY BANKING
Net interest income	$	3,145		$	3,173		$	2,989		$	2,846		$	2,864
Provision for credit losses		232			199			213			214			236
Noninterest income		2,782			2,079			2,359			2,140			2,544
Noninterest expense		3,814			3,143			3,126			2,994			3,385
Income before income tax expense		1,881			1,910			2,009			1,778			1,787
Income tax expense		643			664			693			611			605
Net income	$	1,238		$	1,246		$	1,316		$	1,167		$	1,182
Average loans	$	191.7		$	189.9		$	185.9		$	180.3		$	162.7
Average assets		302.6			303.7			298.8			277.4			278.5
Average core deposits		204.0			199.6			198.9			188.3			186.3
WHOLESALE BANKING
Net interest income	$	557		$	531		$	559		$	562		$	561
Provision for credit losses		11			10			18			23			23
Noninterest income		799			723			720			828			750
Noninterest expense		718			678			663			669			694
Income before income tax expense		627			566			598			698			594
Income tax expense		224			203			213			250			212
Net income	$	403		$	363		$	385		$	448		$	382
Average loans	$	56.4		$	53.7		$	52.1		$	50.3		$	49.8
Average assets		81.6			77.4			75.8			75.7			74.8
Average core deposits		26.1			25.3			25.9			24.7			23.6
WELLS FARGO FINANCIAL
Net interest income	$	754		$	715		$	680		$	644		$	638
Provision for credit losses		222			199			209			167			176
Noninterest income		106			93			84			102			96
Noninterest expense		439			398			387			366			370
Income before income tax expense		199			211			168			213			188
Income tax expense		70			74			63			77			69
Net income	$	129		$	137		$	105		$	136		$	119
Average loans	$	33.1		$	30.7		$	28.2		$	25.8		$	23.5
Average assets		35.1			32.5			29.8			27.4			25.3
Average core deposits		.1			.1			.1			.1			.1
OTHER(1)
Net interest income	$	—		$	(1	)		(2	)	$	(2	)	$	(19	)
Provision for credit losses		—			—			—			—			30
Noninterest income		25			5			37			27			11
Noninterest expense		—			1			177			—			51
Income (loss) before income tax expense (benefit)		25			3			(142	)		25			(89	)
Income tax expense (benefit)		10			1			(50	)		9			(30	)
Net income (loss)	$	15		$	2		$	(92	)	$	16		$	(59	)
Average loans	$	—		$	—		$	—		$	—		$	—
Average assets		6.0			6.0			6.1			6.1			6.1
Average core deposits		—			—			—			—			—
CONSOLIDATED COMPANY
Net interest income	$	4,456		$	4,418		$	4,226		$	4,050		$	4,044
Provision for credit losses		465			408			440			404			465
Noninterest income		3,712			2,900			3,200			3,097			3,401
Noninterest expense		4,971			4,220			4,353			4,029			4,500
Income before income tax expense		2,732			2,690			2,633			2,714			2,480
Income tax expense		947			942			919			947			856
Net income	$	1,785		$	1,748		$	1,714		$	1,767		$	1,624
Average loans	$	281.2		$	274.3		$	266.2		$	256.4		$	236.0
Average assets		425.3			419.6			410.5			386.6			384.7
Average core deposits		230.2			225.0			224.9			213.1			210.0

(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, including, for the second quarter of 2004, a $176 million loss on debt extinguishment and, for the fourth quarter of 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 principally comprise unallocated goodwill held at the enterprise level.

-29-

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

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in millions)	2004			2004			2004			2004			2003
Mortgage servicing rights:
Balance, beginning of quarter	$	9,567		$	10,100		$	8,270		$	8,848		$	7,589
Originations		369			465			597			338			674
Purchases		358			261			466			268			410
Amortization		(473	)		(411	)		(431	)		(511	)		(459	)
Write-down		—			—			—			(169	)		—
Other (includes changes in mortgage servicing rights due to hedging)		(355	)		(848	)		1,198			(504	)		634
Balance, end of quarter	$	9,466		$	9,567		$	10,100		$	8,270		$	8,848
Valuation allowance:
Balance, beginning of quarter	$	1,799		$	1,588		$	2,173		$	1,942		$	1,824
Provision (reversal of provision) for mortgage servicing rights in excess of fair value		(234	)		211			(585	)		400			118
Write-down of mortgage servicing rights		—			—			—			(169	)		—
Balance, end of quarter	$	1,565		$	1,799		$	1,588		$	2,173		$	1,942
Mortgage servicing rights, net	$	7,901		$	7,768		$	8,512		$	6,097		$	6,906
Ratio of mortgage servicing rights to related loans serviced for others		1.15	%		1.18	%		1.37	%		1.00	%		1.15	%

	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in billions)	2004			2004			2004			2004			2003
Managed servicing portfolio:
Loans serviced for other	$	688		$	659		$	622		$	609		$	598
Owned loans serviced (portfolio and held for sale)		117			118			127			116			112
Total owned servicing		805			777			749			725			710
Sub-servicing		27			32			32			28			21
Total managed servicing portfolio	$	832		$	809		$	781		$	753		$	731
Weighted-average note rate (owned servicing only)		5.75	%		5.75	%		5.75	%		5.84	%		5.90	%

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

-30-

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

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in billions)	2004			2004			2004			2004			2003
Application Data:
Wells Fargo Home Mortgage first mortgage quarterly applications	$	80		$	83		$	100		$	119		$	71
Refinances as a percentage of applications		44	%		36	%		33	%		56	%		45	%
Wells Fargo Home Mortgage first mortgage unclosed pipeline, at quarter end	$	50		$	55		$	57		$	72		$	46

	Quarter ended
	Dec. 31		,	Sept. 30		,	June 30		,	Mar. 31		,	Dec. 31		,
(in billions)	2004			2004			2004			2004			2003
Residential Real Estate Originations:(1)
Quarter:
Wells Fargo Home Mortgage first mortgage loans:
Retail	$	30		$	29		$	45		$	30		$	31
Correspondent/Wholesale		28			27			39			25			30
Home equity loans and lines		9			10			10			8			8
Wells Fargo Financial		2			2			2			2			2
Total	$	69		$	68		$	96		$	65		$	71
Year-to-date	$	298		$	229		$	161		$	65		$	470

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