1. ANNUAL REPORT PROJECT WELLS FARGO PREPARED BY: DWAYNE FRANCIS FOR ACG 2021 SECTION080

2. EXECUTIVE SUMMARY Wells Fargo & Company has met and exceeded its goals and has recorded a 13% increase in net profit.

3. INTRODUCTION Chief executive officer; RICHARD M. KOVACEVICHRICHARD M. KOVACEVICH Home Office located in San Francisco, CA Latest fiscal statement Wells Fargo is a Financial Institution catering to the needs of individuals, small businesses, and the commercial market. Banking span from the west coast and goes as far east as Texas. All other services are spread evenly across the nation.

4. AUDIT REPORT KPMG LLPKPMG LLP, Independent auditors, summarized that internal control over financial reporting was effectively maintained.

5. STOCK MARKET INFORMATION Most recent stock price $58.45stock price Trading within last 52 Weeks ranged from $57.55 to $64.04 Dividend per share $.52Dividend The captioned info was obtained on October 2, 2005. Investing in Wells Fargo should be considered i.e. Hold

6. INDUSTRY SITUATION #1, #2 or #3 in deposit market share in 17 of our 23 banking states; #2 nationally (6/30/04) #1 retail mortgage originator, #2 mortgage servicing*, #1 in mortgages to low-to-moderate income home buyers #1 home equity lender, #1 (and first) internet bank, #1 small business lender, #1 insurance broker owned by bank holding company (world’s 5th largest insurance brokerage) Inside Mortgage Finance

7. INDUSTRY SITUATION CONTINUE #1 financial services provider to middle-market businesses in our territory, #1 agricultural lender (banks) #2 debit card issuer, #3 bank auto lender, #4 ATM network, One of USA’s leading commercial real estate lenders among banks, One of North America’s premier consumer finance companies.

8. COMPANY PLANS More customer service and interaction Increase average household and commercial products from 4.6 & 5.3 respectively to 8 Increase # of banking customers who have Wells Fargo mortgages & home equity lines Increase the # of Wells Fargo credit/ Debit cardholders Further expansion of distribution channels for increased customer convenience. IE ATMs Attract more customers while, maintaining current through cross selling Build a more inclusive & diverse workplace

9. INCOME STATEMENT ( IN MILLIONS) 20042003 INCOME FROM OPERATIONS 3005928389 NET INCOME70146202

10. BALANCE SHEET ( $ IN THOUSANDS) YearsAssetsLiabilityStockholders Equity 200424444522247087147365 200341955094017711127798 Total assets and liabilities both decreased while stockholders equity increased

11. STATEMENT OF CASH FLOWS The cash flow is more than the net income for the past two years. The company is not growing through investment, it is growing through financing. The primary source of financing is loan term loans. The cash flow over the past two tears has decreased.

12. ACCOUNTING POLICIES The companies accounting and reporting policies conform with the generally accepted accounting principles (GAAP) and practices in the financial service industry. Estimates and assumptions were made by management that affected totals for assets and liabilities on the financial statements.

13. FINANCIAL ANALYSIS LIQUIDITY RATIOS 20042003 Working capital 192965177798 Current ratio1.081.04

14. FINANCIAL ANALYSIS PROFITABLITY RATIOS 20042003 Profit margin2.5 Return on asset1.71.64 Return on Equity 19.5619.36

15. FINANCIAL ANALYSIS SOLVENCY RATIOS 20042003 Debt to Equity15.2531.44

16. FINANCIAL ANALYSIS MARKET STRENGTH RATIOS 20032004 Price/earnings per share $.92 $.84