Mike Mayo wants Wells Fargo to cut back on branches

|About: Wells Fargo & Co. (WFC)|By:, SA News Editor

The CLSA analyst has Wells Fargo (NYSE:WFC) rated at Outperform, but says the bank is overbranched - 6.1K vs. JPMorgan at 5.3K and BofA at 4.7K (on its way to 4K).

Since the account opening scandal broke wide open and the installation of new management, Mayo notes "more openness" to branch closures.

If Wells were to cut back to Bank of America's level, it could boost EPS by 25%, says Mayo, who is looking to the bank's May 11 investor day for a serious move in that direction.

Source: Bloomberg