Elizabeth Warren, a top Democratic Senator, has requested the Federal Reserve not to remove the $1.95 trillion asset cap imposed on Wells Fargo & Company (WFC) until the bank solves its risk management and compliance issues. This was reported by Reuters on Nov. 20, 2024.In a letter to the Fed’s chairman, Jerome Powell and regulatory chief, Michael Barr, Warren highlighted that the restriction, which was imposed in 2018, should not be lifted until WFC "can show that it can properly manage the risks associate ...

Group 1 - The article discusses a value investing approach focusing on classical value ratios such as low P/B, P/FCF, Owner Earnings discounting, PEG ratios, and the Graham Number [1] - It emphasizes the importance of tracking earnings growth versus price appreciation for quality evaluation [1] - The author advocates for self-indexing using the Dow Jones Industrial Average combined with Joel Greenblatt's Magic Formula for tax efficiency [1] Group 2 - The author has a beneficial long position in shares of JPM and WFC through various financial instruments [2] - The article expresses the author's personal opinions and is not influenced by any business relationships with mentioned companies [2]

Core Viewpoint - Wells Fargo & Company (WFC) shares have reached a 52-week high, closing at $74.34, with a 31.7% increase over the past three months, outperforming industry peers like Bank of America and Citigroup [1] Factors Driving WFC Stock - The Federal Reserve's recent interest rate cuts are expected to enhance net interest income (NII) and net interest margin (NIM), supporting top-line growth [4][6] - WFC's NII has shown a compound annual growth rate (CAGR) of 9.4% over the last three years, although it declined in the first nine months of 2024 due to high funding costs [7] - The net interest margin expanded to 3.06% in 2023 from 2.63% in 2022, but contracted in the first nine months of 2024 [7] - The company has implemented cost-cutting measures since Q3 2020, which have resulted in a negative CAGR of 1.1% in non-interest expenses over the last four years [8][9] - Management projects non-interest expenses to be $54 billion in 2024, down from $55.6 billion in 2023 [11] Strong Financial Position - Wells Fargo has a solid balance sheet with long-term debt of $182.1 billion and short-term borrowings of $111.9 billion as of September 30, 2024 [13] - The liquidity coverage ratio stands at 127%, exceeding the regulatory minimum of 100% [13] - The company maintains strong capital ratios, with a Tier 1 common equity ratio of 11.3% and a Total capital ratio of 15.5% as of September 30, 2024 [15] - In July 2024, WFC announced a 14% dividend hike to 40 cents per share, with a five-year annualized dividend growth of 10.84% [16] Concerns for Wells Fargo - An ongoing asset cap limits WFC's growth potential, with loan balances expected to remain subdued until compliance with regulatory demands is achieved [19][20] - Mortgage banking income has seen a negative CAGR of 25.7% over the last four years, with expectations of muted performance due to high mortgage rates [21][23] Analyst Estimates - Analysts have shown optimism regarding WFC's growth prospects, with upward revisions in earnings estimates for 2024 and 2025 [25] - Despite a projected decline of 2.95% in earnings for 2024, a rebound of 3.52% is expected in 2025 [26]

Aside from the Great Recession and the bank failures of last year, few issues in the recent banking era have been more scandalous than Wells Fargo's (WFC 0.04%) infamous phony-accounts scandal. Employees at the bank opened millions of credit card and bank accounts without customers' consent. Since that scandal came to light in 2016, Wells Fargo has dealt with consent orders, paid billions in fines, and done its best to overcome a reputational nightmare. But the bank has not shed a Federal Reserve-imposed as ...

Wells Fargo & Company (NYSE:WFC) BancAnalysts Association of Boston Conference Call November 7, 2024 8:10 AM ET Company Participants Mike Santomassimo - Chief Financial Officer Conference Call Participants Gerard Cassidy - RBC Capital Markets Gerard Cassidy Good morning, everyone. I’m Gerard Cassidy, President of the BancAnalysts Association of Boston. And on behalf of the Board of Directors, I want to welcome everybody to our 43rd annual conference here. And for some of the folks that have been around for ...

Shares of major banks climbed in overnight trading as investors expected Donald Trump's victory in the presidential election.Citigroup jumped about 5% in special late trading on the Robinhood brokerage for well-known stocks. Bank of America added more than 3%, while Wells Fargo and Goldman Sachs each popped more than 2%.These moves come as traders followed results trickling out on the race for the White House. Former President Donald Trump is currently leading by NBC News' count, though several key states h ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-2979 WELLS FARGO & COMPANY (Exact name of registrant as specified in its charter) Delaware No. 41-0449 ...

Core Viewpoint - Wells Fargo & Company reported a solid Q3 2024 earnings report, beating analyst EPS expectations by 14 cents, despite a 2.4% YoY revenue decline, which missed consensus estimates [1][6] Financial Performance - The company reported Q3 2024 EPS of $1.42, exceeding consensus estimates by 14 cents, while revenues fell 2.4% YoY to $20.37 billion, just shy of the expected $20.4 billion [6] - Net interest income declined for the seventh consecutive quarter, with an 11% YoY drop to $11.7 billion, attributed to high funding costs and customer migrations to higher-yielding deposit products [2][3] - Non-interest expenses remained flat YoY, with total net loan charge-offs dropping by 15% YoY, indicating solid credit quality [3] Revenue Sources - Fee-based income rose 16% YoY during the first nine months of 2024, driven by strong performance in Wealth and Investment Management services and FICC trading fees [3] - The Corporate & Investment Banking segment, which generates 24% of total revenue, remained flat YoY, while FICC trading fees helped Markets revenue climb 6% YoY to $1.75 billion [6] Loan Activity and Market Conditions - Average loan balances fell 3% YoY to $32.9 billion, primarily due to sluggish loan activity from high interest rates, impacting the Consumer Banking and Lending segment, which accounts for 45% of total revenue [4][5] - Home lending revenue rose 2% YoY, while auto lending fell sharply by 24% YoY as consumer spending softened [5] Future Outlook - The company adjusted its full-year net interest income decline guidance to around 9%, up from the previous forecast of 7% to 9% [5] - The interest rate cut cycle is expected to improve lending activity as consumers resume borrowing at lower financing costs [5] Stock Performance - Following the earnings report, Wells Fargo's stock experienced a 10% rally, allowing it to catch up to the performance of peer money center banks [1] - The stock trades at 12.57x forward earnings, with an average consensus price target of $61.82 and a highest analyst price target of $71.00 [8]

Group 1 - The CEO of Wells Fargo, Charlie Scharf, expressed a positive outlook on the consumer landscape, stating that consumer resilience is strong and spending is increasing at a measured pace [1] - Deposit balances at Wells Fargo remain robust, and credit quality is performing extremely well, indicating a healthy financial environment [1] - The most recent quarterly results exceeded Wall Street expectations, leading to a more than 4% surge in shares following the report, despite a decline in net interest income [1] Group 2 - Scharf noted that while quarterly results are important, the market tends to react more strongly to these reports than the management does, as evidenced by the stock's fluctuations [2] - The CEO maintained a neutral stance regarding the potential impact of the upcoming presidential election on business, expressing willingness to work with both candidates [2]

Group 1 - US bank branches were closed on Columbus Day, indicating a temporary halt in banking operations [1] - This week is significant for money center banks like Citigroup and Bank of America, as they are expected to release important financial information [1] Group 2 - The focus is on providing insightful analysis on leading financial firms to identify investment opportunities and risks [1] - Preference is given to stocks that exhibit both growth potential and strong financial statements, indicating a dual focus on growth and quality [1]