Chart 46: What do you consider to be the most important catalyst for USB in 2017? 50% 15% fics A3% 40% 35% 30% 25% 20% 14% 15% 10% 5% 0% 0% Sustained operating Further acceleration of Using excess capital _ Rising interest rates leverage, regardless of capital return and strong currency to rate backdrop engage in non- depository deals Source: BofA Merrill Lynch Global Research Wells Fargo & Co (WFC), B-1-7, Buy = WFC sees modestly better benefit from steepening yield curve vs parallel shift. Following the election, the 10yr yield is up 37bp while futures currently imply a 94% probability the Fed raises rates in Dec. As such, Treasurer Neal Blinde noted that WFC could realize a modestly better benefit to spread income from a steepening yield curve vs. the current +$150mn/qtr expectation from a 25bp parallel shift. He outlined how the bank’s actions to manage an interest rate cycle via balance sheet positioning protect on the downside (i.e. post-Brexit) while at the same time allow for an uptick when rates rise. WFC received numerous investor questions on when they would deploy its dry power ($572bn in liquidity), and management noted that the rate backdrop — not question marks on deposit duration — mostly drove deployment decisions. = WFC reiterated its performance targets disclosed at its Investor Day. WFC reiterated its 2-yr performance targets: (1) 1.1-1.4% ROA; (2) 11-14% ROE; (3) 55- 59% efficiency ratio; and (4) 55-75% net capital payout. As of 3Q16, the bank is currently within these ranges on all metrics except for efficiency (3Q: 59.4%). This is consistent with the 61% of the audience polled that expect WFC to perform within the targeted ROE range as headwinds from Retail Banking is offset by an improvement in the macro-economy. That said, 50% of the audience polled believe the issues arising from the retail sales issue will modestly impact earnings (0-5%). Chart 47: Based on your post-election outlook for 2017, how do you Chart 48: What do you think is the