Wells Fargo (NYSE:WFC) is combined of the "big four" financial institutions in the United States, along with Citigroup, JPMorgan Tag along, and Bank of U.S.A, but it makes its money somewhat differently from the others. Specifically, patc the others depend on investment banking and trading activities for large percentages of their revenue, Wells Fargo's receipts mix looks Thomas More like what you'd look from a traditional savings & loanword.

Wells Fargo's gross sources

In 2022, Wells Fargo generated approximately $94.2 billion in revenue, $53.7 billion of which came from interest income and $40.5 billion of which came from different sources, such as fees.

Pile of cash, bundles of 100 dollar bills.

Image reservoir: Getty Images.

Here's a breakdown of the sources of H. G. Wells Fargo's matter to income:

Source

Amount ($billions)

Loans

$39.5

Investment securities

$9.2

Trading assets

$2.5

Other interest income

$1.6

Mortgages held available

$0.8

Total

$53.7

Source: Wells Fargo 2022 Operating statement. Numbers may non sum perfectly, payable to rounding error.

As you might carry, the lion's share of Wells Fargo's worry income comes from its loaning activities. The noninterest income, along the unusual turn over, is a bit more complicated:

Reference

Amount ($billions)

Trust and investment fees

$14.2

Mortgage banking

$6.1

Service charges on depositary accounts

$5.4

Batting order fees

$3.9

Other fees

$3.7

Let income

$1.9

Policy

$1.3

Other income

$1.3

Last gains on debt securities

$0.9

Clear gains from fairness investments

$0.9

Lucre gains from trading activities

$0.8

Total

$40.5

Source: Wells Fargo 2022 Earnings report. Numbers May not tot dead, expected to rounding.

The main point to notice in these charts is that most of Wells Fargo's money is made from traditional consumer and business banking activities -- not investment banking and trading, which makes up a much big portion of most other banks' revenue streams. For example, about $12.1 billion of Banking concern of America's $42.6 jillio in noninterest income in 2022 came from investment banking and trading profits.

Wells Fargo's revenue by business division

Wells Fargo operates its business in three divisions -- community of interests banking, wholesale banking, and wealth and investment direction.

The community banking division is the indefinite that provides banking products for consumers and decreased businesses, such as checking and savings accounts, credit and debit entry card game, auto loans, mortgages, and other lending products. Information technology also offers investing services and insurance in 39 states and D.C. Community banking is Wells Fargo's largest partition, and accounted for about 53% of the bank's revenue in the almost recent draw and quarter.

Wholesale banking provides many of the same services as the community of interests banking division, but to businesses, governments, and otherwise institutions. In addition, wholesale banking offers Department of the Treasury management, trust, and equipment financing services, just to name a a few. The wholesale banking division made up about 33% of the savings bank's total revenue in the latest poop.

Finally, the riches and investing management division provides investment funds and retirement products to individuals and businesses through Herbert George Wells Fargo Advisors, Wells Fargo Plus Management, and others. This includes Wells Fargo's brokerage firm services, likewise as financial planning services provided to high-web-worth individuals. This is Wells Fargo's smallest division, at about 19% of revenue, only it has grown well over the past several long time.

The can line

The main thing to notice here is that while some of Wells Fargo's revenue comes from trading and investment, well-nig of H. G. Wells Fargo's money is made from handed-down consumer banking activities such as lending, course credit cards, and account fees.

This makes the bank different than the other big U.S. banks, as the business exemplar looks more like a traditional savings and loan than what we've become accustomed to from our massive financial institutions.

From an investing viewpoint, Wells Fargo's more narrow focus along its core business enterprise has resulted in stronger and more consistent growth than most of its peers. Wells Fargo is a business institution that does a finer job of running an efficient and prophylactic consumer banking operation than most, and the coin bank sticks with what it's good at.

This article represents the opinion of the writer, who may disagree with the "official" recommendation lieu of a Motley Fool premium advisory table service. We're mixed bag! Inquisitive an investment thesis -- even one of our own -- helps America all think critically about investing and make decisions that help us become smarter, happier, and richer.