Throughout the market disruption, the company has been very clear that it is open for business, and it has been actively meeting the financing needs of its commercial customers. However, the firm remains focused on making quality loans and on maintaining the continued low level of loan losses in its Wholesale Group. This reflects the benefit of the long-standing relationship orientation and conservative underwriting in this business.

Wholesale Banking Group''s average core deposits were up $18 billion or 40% from the fourth quarter of 2006. The growth came primarily from large corporate and middle-market relationships, international and correspondent banking customers, and from higher institutional sweep and liquidity balances from the firm’s asset management customers.

The International Group had double-digit revenue and earnings growth for the quarter and for the year. Due to volatility in the currency and credit markets, the Foreign Exchange Group traded a record $16 billion per day in transactions during the quarter, and quarterly volumes were up 51% from a year ago. The firm has foreign exchange sales and trading desks in San Francisco, New York, Minneapolis, and sales offices in 11 other markets. The firm also serves its customers through Foreign Exchange Online, the online foreign exchange platform on the industry leading commercial electronic office portal.

More than 70% of the firm’s commercial banking relationships are active users of its online business portal. Foreign Exchange Online grew revenue 24% in the fourth quarter. The firm serves its retail and small business customers through approximately 325 international teller locations in banking stores, with 40% revenue growth in the fourth quarter. Despite a weak dollar, Wells Fargo customers continued to travel overseas, with bank note revenue up 25% in 2007.

Wells Fargo Insurance Inc or Consumer and Small Business Insurance Group

The group had double-digit revenue, up 32%, and double-digit earnings, up 45%, in the fourth quarter. Strong revenue growth was driven by homeowner''s insurance, debt cancellation and crop insurance. Cross-sell was also a major growth driver, with store and phone banker referrals to the firm’s insurance agents exceeding $1 million 2007, up 50% from 2006.

Wells Fargo Insurance Services, Inc., the company’s middle-market commercial insurance broker, also continued to grow revenue and acquired insurance agencies in Minnesota, New Hampshire, Texas and California in the fourth quarter. A total of 16 insurance agency acquisitions were completed in 2007.

The firm continued to make it more convenient for wholesale customers to do more business with Wells Fargo. Through the electronic deposit services, including the Internet-based Desktop Deposit Service, on several occasions, the firm captured and cleared over 1 million check images and more than $2 billion in deposits in a single day.

In 2007, over 102 million checks were cleared electronically, over three times the total in 2006 and over $232 billion in deposit dollars were received electronically, more than double the amount in 2006.

The firm’s electronic deposit services, including Desktop Deposit, now account for approximately 12% of its treasury management customers'' checking deposit volume. Desktop Deposit is an important product for the firm because it adds convenience and flexibility for its customers, reduces its check processing expenses, and provides a good source of fee income for its treasury management business.

Asset Management Group

This group, which is responsible for managing and administering a total of $644 billion in client assets, had double-digit growth in revenue earnings and assets under management. Assets under management were up 16% from the fourth quarter of 2006.

Wells Fargo Advantage Funds

The mutual fund business grew average assets by 24% from a year ago, and ended the year with $155 billion in fund balances, making it the third-largest fund manager among U.S. banks. This growth was driven by strong fund performance and new balances. Over half of the Wells Fargo Advantage Funds were in the top two Lipper performance quintiles for the past three-year period. Wells Fargo Advantage Funds won 10 Mutual Fund Education Alliance awards, winning over 30% of the total awards - more than any competitor in our category, including Vanguard, Fidelity, T. Rowe Price and American Century.

Community Banking Group

The Community Banking Group, which includes regional banking, wealth management, home equity, mortgage banking and retail Internet, had solid revenue growth, up 9% in the fourth quarter and up 11% in 2007. Bottom-line results as reported for this business included the credit reserve build of $1.4 billion pre-tax.

Regional banking, serving 11 million households, continued to focus on helping customers achieve their financial goals, with record core product sales of $19.7 million in 2007, up 11% from 2006 on a comparable basis and $4.7 million in core product sales in the fourth quarter, up 12% from the fourth quarter of 2006 on a comparable basis. California continued to be one of the fastest-growing states, with a 16% increase in core product sales from the fourth quarter of 2006 on a comparable basis. These strong sales results largely reflected greater productivity, with core sales per platform banker FTE of 4.93 per day in 2007, up from 4.75 per day in 2006. With over 16,000 platform banker FTE across 23 banking states, small increases in sales productivity results in meaningful increases in core product sales. The average retail bank household now has 5.5 products with Wells Fargo, up from 5.2 products a year ago and up from around three products in 1998. Six of the firm’s 32 regions now have an average retail bank household cross-sell of over six; 22% of its retail customers had over eight products. The firm’s long-term goal is to nearly double the amount of customers who bought eight products five years ago. In the top region, 31% of the customers had over eight products with the firm.

Sales of Wells Fargo Packages, which include a checking account and at least three other products such as a debit card, a credit card, a savings account or home equity loan, were up 22% from the fourth quarter of 2006, purchased by 70% of new checking account customers.

Increased customer penetration and usage of credit and debit cards grew total card fee income by 22% from fourth quarter 2006 and 19% annualized on a linked-quarter basis. At quarter end, 37% of the retail bank consumer households had a Wells Fargo credit card, up from 35% a year ago and up from 24% five years ago. Purchase volume on these cards was up 19% from fourth quarter 2006, and average balances were up 28%.

About 91% of consumer checking account customers had a debit card, up from 85% five years ago, and purchase volume increased by 14% in the fourth quarter from a year ago. Wells Fargo''s best in class Rewards suite for credit and debit card customers has contributed to both to the growth in balances and purchase volume. In addition, customers are finding the patent-pending MySpendingReport a helpful tool for understanding and managing their spending.