Company: WFC-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000072971-25-000129
Chunk: 200

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 15
Chunk 200
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 certain loans and debt securities are included in net interest income, while taxable-equivalent adjustments related to income tax credits for affordable housing and renewable energy investments are included in noninterest income, in each case with corresponding impacts to income tax expense (benefit). Adjustments are included in Corporate, Commercial Banking, and Corporate and Investment Banking and are eliminated to reconcile to the Company’s consolidated financial results.(2)These revenue types are related to financial assets and liabilities, including loans, leases, securities and derivatives, with additional details included in other footnotes to our financial statements.(3)We earned trailing commissions of $233 million and $231 million, for the quarters ended March 31, 2025 and 2024, respectively.(4)The cost of credit card rewards and rebates of $667 million and $651 million, for the quarters ended March 31, 2025 and 2024, respectively, are presented net against the related revenue.

116Wells Fargo & Company

Expenses

OPERATING LOSSES.  Operating losses consist of expenses related to:•Legal actions such as litigation and regulatory matters. For additional information on legal actions, see Note 10 (Legal Actions);•Customer remediation activities, which are associated with our efforts to identify areas or instances where customers may have experienced financial harm and provide remediation as appropriate. We have accrued for the probable and estimable costs related to our customer remediation activities. We had $188 million and $236 million of accrued liabilities for customer remediation activities as of March 31, 2025, and December 31, 2024, respectively. Amounts may change based on additional facts and information, as well as ongoing reviews and communications with our regulators; and•Other business activities such as deposit overdraft losses, fraud losses, and isolated instances of customer redress.Table 18.2 provides the components of our operating losses included in our consolidated statement of income.Table 18.2:  Operating LossesQuarter ended March 31,(in millions)20252024Legal actions$(19)17 Customer remediation10 428 Other152 188 Total operating losses$143 633 Operating losses may have significant variability given the inherent and unpredictable nature of legal actions and customer remediation activities. The timing and determination of the amount of any associated losses for these matters depends on a variety of factors, some of which are outside of our control.OTHER EXPENSES.  Regulatory Charges and Assessments expense, which is included in other non