Quantitative Easing Effects on Wells Fargo

Topics: Financial services, Wells Fargo, Financial ratios Pages: 4 (1479 words) Published: January 18, 2013
Commercial Bank: Wells Fargo
Background:
Wells Fargo is the largest bank in terms of market capitalization and the fourth largest bank in the United States in terms of assets. The present Wells Fargo is a result of a merger between San Francisco-based Wells Fargo & Company and Minneapolis-based Norwest Corporation in 1998. Later on October 3, 2008, Wells Fargo acquired Charlotte-based Wachovia for about $15.1 billion in a stock-for-stock transaction. Its headquarters is currently located in San Francisco, California. Wells Fargo is a diversified financial services company that provides credit cards, consumer banking, corporate banking, investment banking, global wealth management, financial analysis, private equity, insurance and etc. Wells Fargo and the 2008 Financial Crisis

| Before the crisis| During the crisis| After the crisis| Profitability Ratios| 2006| 2007| 2008| 2009| 2010| 2011| ROA% (Net)| 1.76| 1.52| 0.28| 0.96| 0.99| 1.23|
ROE % (Net)| 19.6| 17.23| 3.61| 11.64| 10.38| 11.90| Net Interest Margin %| 61.88| 59.62| 72.05| 82.32| 84.77| 86.54| Calculated Tax Rate %| 33.45| 30.70| 18.48| 29.62| 33.36| 31.47| | | | | | | |

Debt Management| | | | | | |
Total Debt to Equity| 9.51| 11.08| 12.22| 10.13| 8.95| 8.37| Equity Multiplier| 10.51| 12.08| 13.22| 11.13| 9.95| 9.37| | | | | | | |
Asset Management| | | | | | |
Total Asset Turnover| 0.1| 0.1| 0.05| 0.08| 0.07| 0.07| Property Plant & Equip Turnover| 10.53| 10.92| 6.29| 8.96| 9.15| 9.14| Cash & Equivalents Turnover| 2.91| 3.36| 1.28| 1.58| 1.42| 1.57| | | | | | | |

Per Share| | | | | | |
Cash Flow per Share| 9.53| 2.71| (1.43)| 6.30| 3.59| 2.59| Book Value per Share| 13.58| 14.45| 23.43| 21.59| 24.02| 26.65|

According to the figures in the years 2006 and 2007, we can see that Wells Fargo was in a very good shape before the...
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