WFC
#Sure.
So how that works is, we take total product holdings divided by total customers.
And we're actually seeing the denominator grow faster now than we've seen it in some time, and first-year customers don't have an average of six products.
They are more in the four range, so that has a bit of a dilutive impact on that.
And also, as you get to the higher value products, the sales cycle or solutions cycle tends to be a bit longer.
So this is actually a good problem I think, in that when you're growing net new primary checking accounts by 5.6%, the goal is not necessarily a ratio.
The goal is to have long-term mutually beneficial relationships with customers where we help them succeed financially.
So I'm happy with where we are in that.
But thank you for the question.
It's a good question.
So it depends on the existing and changing distribution between one-month, three-month LIBOR-based loans, prime-based loans, fixed loans, LIBOR loans that we swap to fixed rate, and there's a lot that goes into it.
So it's hard to isolate it.
I'd say that, when we think back to the way that we separated our interest rate sensitive categories for illustrative purposes at the last Investor Day, we would have said that 20%-ish ---+ and this is both asset and liability side, so it's a different answer than what you're asking ---+ but that we would've gotten, call it 20% of a change flowing through, and the range was 10% to 30%.
And I think we're probably at the low end of that range right now, but that's picking up both assets and liabilities.
I can tell you also that LIBOR resets seem to have occurred the way we would've expected them after the Fed moved in December.
So the asset side is behaving as we expected.
And it's ---+ a 25 basis point move is not a giant needle mover, in terms of dollars and cents for Wells Fargo.
On a net basis, you're talking about ---+ I don't know ---+ $100 million to $200 million a quarter or something like that.
So all things being equal, which they never are, but that's the order of magnitude.
Yes.
So I wouldn't describe anything as a disruption.
There is sort of two ways that on the sell side that we might be impacted.
One is, are we ---+ how do net long credit are we in our trading businesses.
And I think we managed that really, really well, and it wasn't really disruptive.
And then, there's the ---+ are the markets open, and are we representing clients, and helping them raise money in the high yield market.
And that's been harder to do, given the volatility that we've seen.
Our share is still about the same.
We're between 4% and 5% of US investment banking fees.
That's capital markets activity, advisory activity, et cetera, but it didn't have a big impact.
We were up in the fourth quarter over the third quarter in investment banking fees overall, which you'd expect.
The fourth quarter is seasonally, usually a busier time, M&A activity, et cetera.
But no disruption.
Hey, <UNK>.
Sure.
So criticized oil and gas assets ---+ I can tell you what they ---+ how they changed year-over-year.
They're at, call it [$6.6 billion] at the end of the quarter, up $[5.5 billion] from ---+ so substantially, all migrated during the course of 2015.
And in terms of second lien, it's a small number.
We have a small business called Energy Capital that does some ---+ they're deeper in the capital stack investing, and in our clients and in their properties.
And I want to say the total portfolio is in the hundreds of millions of dollars.
So it's modest.
Think of this is a senior lender, I mean ---+ (multiple speakers).
And the big E&P exposures are senior loan exposures.
I ---+ let me see.
It was 33% at the end of the third quarter, and 38% at the end of the fourth quarter.
So we have an ongoing analysis to look at it ---+ this is a related, but indirect response to that question.
We have an ongoing analysis of all of the MSAs where we've got more than 5% ---+ well, there's two versions of it, so the 3% to 5%, and then greater 5% employment in the energy industry, and we're looking at all of our consumer and commercial exposures in those geographical areas to measure impact, and to think about how we lend money, A, what our balance sheet exposure is and, B, what our new origination exposure looks like.
And it might surprise you that places like Houston, because of their relative diversity of their overall economy are actually performing relatively stronger than some counties in ---+ that represent other basins in the Dakotas, in the West, et cetera.
But we really haven't seen any second order big impact yet among any of them, in terms of our balance sheet exposure.
And we've got ---+ we're on the lookout.
The entire credit organization here is focused on how that might change, but it really hasn't yet.
And then, as <UNK> mentioned earlier, for most of our customers, 98% of our loans and most of our retail consumer customers and our wholesale customers, lower fuel costs mean lower transportation costs, mean lower heating costs, mean lower power costs.
It's not bad for their business.
They're impacted if their customers are employed in the business.
They're impacted if they're selling into the business.
But it's got a net stimulative effect.
And so, we haven't seen a big spillover yet.
Lowest on record at Wells Fargo, 33 basis points is as low ---+ we've looked in the ---+ (multiple speakers)
I've been here 34 years, I've never found it.
Never been lower.
Yes.
So we'll probably talk about this in some depth at our Investor Day, and there's a couple important things.
And one of them is the mix of the assets on our balance sheet today, compared to where it used to be.
So home equity is sort of a going away business, because we've got a portfolio that's been shrinking for a long time.
It's been improving in performance, and it just is not being added for a variety of reasons on a net basis.
And that's unlikely to change.
That was a big source of our absolute dollars of loss in the weighted average charge-off rate through the ---+ leading up to, and through the crisis.
When you think about the residential real estate portfolio here, what we are adding is all high-grade ---+ it's prime jumbo origination.
It's our ---+ they are very safe loans.
I think we've got 4 basis points of loss, something like that coming through that portfolio.
It feels very good.
And while I'm sure it'll change a little bit over time, it's not going to behave like balance sheet first mortgage loans did pre-crisis, because there was just a different appetite for the types of loans that banks might hold.
So I think that's important.
Also the percentage of our portfolio and card business.
We're trying to grow the credit card business.
We like it a lot.
It's obviously got a much more volatile charge-off profile to it, but at $30 billion, $40 billion, or even $50 billion worth of assets at Wells Fargo, it's going to have ---+ if you are comparing us against other banks for example, that's going to have an impact.
And I think those are a couple of the ---+ that contribution to mix is something that you need to have a sense for.
And I think what you'll hear from us when we revisit this at Investor Day, is that our current expectation for our normalized through the cycle loss rate will be lower than the last time that we talked about it.
But probably higher than 33 basis points, but lower than the 75 or whatever we signaled to you two years ago.
And <UNK>, I'll make one final comment.
We do ---+ virtually everything we do on the consumer side is prime.
I mean, we have some near prime, 10% or so or less in auto.
But ---+ and that's a bit of a difference from before.
We had a Wells Fargo Financial in the past for example.
Thank you.
Well, thank you for joining us.
I want to thank all of our team members who serve one in three customers across the United States, and so much appreciate all they do.
Thank you for joining us, and we'll see you in 90 days, three months from now.
Bye-bye.
