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Notes from Wells Fargo's investor day

  • The bank is targeting a payout ratio of 55-75% vs. a previous range of 50-65%. The efficiency ratio remains in the 55-59% range, as does ROE of 12-15%, and ROA of 1.3-1.6%.
  • CFO John Shrewsberry's presentation slides
  • More from Shrewsberry: Expect loan growth to continue at a faster pace than GDP growth, the bank is well-positioned for rising rates, mortgage production revenue should stabilize and WFC is well-positioned for non-mortgage fee growth, and strong credit results (and reserve releases) should continue.
  • All presentations and webast
Comments (7)
  • svy
    , contributor
    Comments (56) | Send Message
    on page 16 of the cfo presentation it shows the % of "fed funds" increasing from 1Q12 to 1Q14 for the bank's average earning asset mix...


    how is a "fed fund" an earning asset???
    20 May, 01:06 PM Reply Like
  • rgperrin
    , contributor
    Comments (697) | Send Message
    A "gift" from hapless taxpayers?
    20 May, 01:47 PM Reply Like
  • John Grandits
    , contributor
    Comments (328) | Send Message
    Is WFC a member bank, perhaps from increased deposits held with the Fed?
    20 May, 03:11 PM Reply Like
  • svy
    , contributor
    Comments (56) | Send Message

  this related to the link above & captured comments below?


    "...the Fed's new reverse repo facility .... Under the facility, which the Fed has been testing for a year, banks, dealers, and money market funds effectively make overnight cash loans to the central bank, eliminating that liquidity from the system...."
    20 May, 03:34 PM Reply Like
  • moseharper
    , contributor
    Comments (119) | Send Message
    Fed funds are excess funds invested on an overnight basis with the Federal Reserve System. The Fed doesn't pay much, but better than nothing. Thus, it is an "earning asset" that every bank in the country invests in.
    20 May, 05:22 PM Reply Like
  • svy
    , contributor
    Comments (56) | Send Message
    thank you
    20 May, 08:23 PM Reply Like
  • svy
    , contributor
    Comments (56) | Send Message


    also in eurozone the ecb may make the banks pay to park their cash at the european equivalent of the fed....if the interest rate is cut below


    theory is push banks to lend that money to companies and consumers to get the economy moving...interesting
    2 Jun, 02:52 PM Reply Like
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