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= WFC continues to make progress on regulatory compliance. As of 3Q, WFC’s current total loss absorbing capacity (TLAC) shortfall was 2.1% of risk weighted assets or $29bn ($43bn including its internal buffer), an S8bn QoQ improvement. That said, Mr Blinde assured investors that WFC will continue to focus on deposit growth (66% of total funding) even as its long-term debt needs continue. WFC is compliant with the liquidity coverage ratio (LCR). = Potential changes to annual stress test process viewed as positive. Mr. Blinde noted that potential changes to the annual stress test process, as proposed by Gov. Tarullo in Sept., is a “real” positive, specifically as it reduces any variance between how the stressed risk weighted asset balance is calculated. This is likely positive for the majority of investors polled (31%) who think capital return is the biggest catalyst for the stock and the (70%) who see the dividend payout growing towards the 40-50% range long-term (currently 37%). Chart 49: What do you think is the biggest catalyst for WFC shares over the next 12-24 months? 35% 31% 30% 25% 20% 15% 10% 5% 0% Better clarity Deliveringclean Achieving solid Renewed focus on Accelerating around the full © andconsistent revenue growth expense capital return, with impact of the sales earnings results regardless of the managementto — focus on the practices issue close to or better rate environment drive the efficiency dividend than current ratio lower consensus Source: BofA Merrill Lynch Global Research Chart 50: As a result, what do you think WFC's long-term dividend payout ratio will be? 40% 35% 30% 29% 20% 15% 10% 5% 0% Near the current level 40-45% 45-50% >50% of 37% Source: BofA Merrill Lynch Global Research = Note: WFC is scheduled to report October customer activity in Retail Banking on Thur, Nov. 17th at 9am ET. Zions Bancorporation (ZION), C-3-7, Underperform = Sentiment post-election appears constructive on growth prospects. Consistent with other bank management teams speaking at this year’s conference, CFO Paul Burdiss noted that small businesses have been reluctant to invest given the Bankof America 2 2016 Future of Financials Conference | 17 November 2016 33 Merrill Lynch HOUSE_OVERSIGHT_014347