Company: WFC-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000072971-25-000253
Chunk: 58

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 1
Chunk 58
---
in millions)2025202420252024CVA$39 (31)$(20)(7)DVA(10)4 (18)(7)FVA24 — (23)— Total$53 (27)$(61)(14)Table 11.8 presents the impact of derivative valuation adjustments on derivative fair values. Table 11.8:  Derivative Valuation AdjustmentsContra Liability (Contra Asset)(in millions)Sep 30,2025Dec 31,2024CVA$(295)(275)DVA208 226 FVA, net(108)(85)Total derivative valuation adjustments$(195)(134)Credit DerivativesCredit derivative contracts transfer the credit risk of a reference asset or entity from one party (the purchaser of credit protection) to another party (the seller of credit protection). We use credit derivatives to assist customers in managing their risks, to manage our counterparty credit risk, and to hedge certain loan exposures. We act as both a purchaser and seller of credit protection. We may purchase and sell credit protection on corporate debt obligations through the use of credit default swaps, risk participation swaps or other credit derivatives. As a seller of credit protection, we would be required to perform under the sold credit derivatives in the event of default by the referenced obligors, such as bankruptcy, capital restructuring or lack of principal and/or interest payment.Table 11.9 provides details of sold credit derivatives.Table 11.9:  Sold Credit DerivativesCredit protection sold - Notional amount(in millions)TotalNon-investment gradeSeptember 30, 2025Credit default swaps$12,470 1,766 Risk participation swaps5,816 3,868 Total credit derivatives$18,286 5,634 December 31, 2024 Credit default swaps$10,516 684 Risk participation swaps6,007 3,779 Total credit derivatives$16,523 4,463 Total credit protection sold represents the estimated maximum exposure to loss that would be incurred if, upon an event of default, the value of our interests and any associated collateral declined to zero. Maximum exposure does not take into consideration any recovery value from the referenced obligation or offset from collateral held or any economic hedges. Non-investment grade amounts represent those credit derivatives with a higher risk of us being required to perform under the terms of the credit derivative based on the risk of the underlying assets. We consider the credit risk to be low if the