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- November monthly performance was: +0.26%
- 52-week performance vs. the S&P 500 is: -4%
- $0.16 in dividends were paid in November
- Top 10 Holdings as of 10/30/2015: Apple Inc (AAPL): 3.52%, Microsoft Corp (MSFT): 3.36%, Exxon Mobil Corporation (XOM): 3.27%, General Electric Co (GE): 3.01%, AT&T Inc (T): 2.91%, Verizon Communications Inc (VZ): 2.75%, Johnson & Johnson (JNJ): 2.22%, Wells Fargo & Co (WFC): 2.15%, Chevron Corp (CVX): 2.1%, Pfizer Inc (PFE): 2.1%
Yesterday, 1:46 PM
- The Office of the Comptroller of the Currency and the San Francisco Fed have launched investigations into Wells Fargo's (WFC) sales culture, reports the WSJ, wanting to know if the bank is pushing employees too hard to meet quotas at the expense of preventing questionable behavior.
- These investigations follow a lawsuit earlier this year by Los Angeles, accusing the bank of pressuring employees to commit fraudulent acts like opening accounts for people who doesn't exist and charging customers for products without permission.
- Cross-selling is heard often on Wall Street, but few do it better than Wells Fargo, and the bank is the only major U.S. financial institution to break out cross-selling stats in its regulatory filings. Known as the "Gr-eight" initiative inside WFC, the bank's longtime goal is to have customers use on average eight of its products. Inside the retail division, the number is up to 6.13. In wealth management, the figure is 10.52.
Tue, Nov. 17, 5:57 PM
- Wells Fargo (NYSE:WFC) names Timothy Sloan as its new President and COO, setting him up as a potential successor to CEO John Stumpf.
- In addition to his new title, Sloan will continue to lead WFC’s wholesale banking business.
- Many observers both inside and outside the company have seen Sloan as a potential successor to Stumpf.
- Stumpf will turn 65 in 2018, and under company rules, all senior execs normally must retire by Dec. 31 of the year in which they turn 65.
Tue, Nov. 10, 9:43 AM
- "This is a shot across the bow from banks," says Pinnacle Advisory's Michael Kitces. At issue are popular aggregator sites - think Mint.com, Quicken (NASDAQ:INTU), Digit.co - which allow consumers to monitor all of their financial relationships in one place.
- JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) in recent months have also disrupted the data flow to these operators, according to the WSJ. Bank of America (NYSE:BAC), reports the Journal, took action in July, with at least two aggregators being shut out.
- Naturally trying to protect their turf, banks are also concerned the aggregator sites could threaten account security (they often require bank-account passwords be turned over). Fifth Third Bancorp (NASDAQ:FITB), Capital One (NYSE:COF), and JPMorgan are among those warning customers against sharing information with third parties.
Mon, Nov. 9, 3:23 PM
- "I don’t need to go do a focus group to find out what’s happening in America," says Wells Fargo (NYSE:WFC) CEO John Stumpf. "I just go to a family reunion." Stumpf reminds he was one of eleven children who grew up on a Minnesota farm teetering near failure at most times.
- It was just over a year ago when a bank employe got his 15 minutes with an open letter requesting a $10K raise for each Wells Fargo worker (the employee has since left the bank).
- It's a truism, says Stumpf, that the bank - if it wants the best team - needs to be competitive in compensation, and he notes job openings are well oversubscribed when they open up. Promotions make sense, he says, when they come from better performance and increased responsibilities, as opposed to a "carte blanche deal" where it's unrelated to merit.
- Stumpf's total compensation last year was up roughly 11% to $21.4M.
Mon, Nov. 9, 4:24 AM
- The Financial Stability Board has published new rules that aim to stop banks from becoming "too big to fail," confirming its final proposals for Total Loss Absorbing Capacity, or TLAC.
- Under the plan, large lenders will have by January 2019 to hold a financial cushion of at least 16% of their risk-weighted assets in equity and debt that can be written off. That requirement will gradually increase, reaching 18% of assets weighted by risk by January 2022.
- The FSB will put the rules, which will apply to the world's top 30 banks, to the G20 later this month.
Fri, Nov. 6, 12:46 PM
- Hoping to come into compliance with new capital rules, Wells Fargo (WFC +1.5%) will likely need to issue another $20B-$40B in long-term debt, says CFO John Shrewsberry. This stands against total bank liabilities of $1.56T ($1.2T in deposits).
- Moving on to the subject consumer loan startups like LendingClub (LC +3.3%), Shrewsberry says Wells has developed systems to approve consumer loans in quicker fashion. The CFO questions how whether these new competitors will be able to handle higher interest rates and a rise in defaults. More interesting to him are new payment technologies.
- As for acquisitions, the bank is more likely to be buying assets (a la the GE deals), rather than companies. Credit card loans are a possible target, but not mortgages or autos as Wells already has sizable operations in those areas.
- Presentation slides
Thu, Nov. 5, 11:00 AM
- Wells Fargo (WFC +0.3%) says it will pay $81.6M over allegations it failed to provide homeowners with legally required notices, denying them the ability to challenge the accuracy of mortgage payments.
- The Justice Department said the settlement funds will go out to homeowners who were in bankruptcy between Dec. 1, 2011, and March 31, 2015.
Wed, Nov. 4, 3:30 PM
- "To manage our exposure to Visa (NYSE:V) and realize the value of the appreciated Visa shares, we incrementally sold these shares through a series of sales over the past few years,” says Wells Fargo (NYSE:WFC) disclosing the sale of its 20.7M share stake in received as part of Visa's IPO.
- Roughly 1.8K financial institutions were apportioned Class B shares after the Visa IPO - they don't trade publicly, but instead only between the holders of the Class B stock. All told, U.S. financials own more than $30B in Visa stock, or about 17% of the company.
- Wells' stake could have been worth about $2.7B. The sale would make the bank just the latest to tap into the Visa "piggy bank" - PNC Financial and U.S. Bancorp have recently raised hundreds of millions with their Visa share sales.
- Source: WSJ
Tue, Oct. 27, 5:03 PM
Wed, Oct. 21, 1:04 PM
- It's not about a sluggish origination environment. These layoffs (as with most past ones) are about servicing. With far fewer mortgages needing massaging as they go through delinquency or foreclosure issues, Wells Fargo (NYSE:WFC) and other lenders have been cutting servicing staff.
- The latest is at the bank's Fort Mill, SC facility, where 127 workers are being let go.
Mon, Oct. 19, 3:42 PM
- Barclays (NYSE:BCS) will pay $325M and Wachovia (now part of WFC) $53M to settle claims over toxic mortgages sold to the National Credit Union Administration. The deal brings to $2.2B the total the NCUA has reaped from various bank over MBS.
- Barclays says it will include a provision in its Q3 results for the settlement.
- Next up for the NCUA are pending claims over alleged manipulation of interest rates.
Wed, Oct. 14, 12:57 PM
- "Whatever savings we get by being thrifty, we reinvest elsewhere," says Wells Fargo (WFC -0.4%) CFO John Shrewsberry, speaking on the earnings call. "You save on one side and you invest on the other side," says CEO John Stumpf.
- Money the bank is saving in ares like travel expenses and cutting the real estate footprint is being spent in areas like regulatory compliance and technology. For this reason, management says not to expect efficiency ratio - at 56.7% in Q3 - not to fall a whole lot further as long as the sluggish revenue environment persists.
- More GE Capital purchases (the bank has already made three this year)? Unlikely, says Stumpf. Most of what GE has left to sell is outside of the U.S. - not an area of focus for Wells.
- In a tweak to the organizational structure, the asset-management business is being added to the wealth, brokerage, and retirement division, with the whole thing to be renamed Wealth and Investment Management.
- Jefferies' Ken Usdin says the bank matched estimates thanks to gains from equity investments which helped offset negative trading results. Growth in fees from higher service charges, card fees, and lease income was "more than offset" by drops in other units like mortgage banking and trading.
- Live Blog at WSJ
- Webcast and quarterly supplement
- Previously: Wells Fargo lower after meeting estimates (Oct. 14)
- Previously: Wells Fargo EPS in-line, beats on revenue (Oct. 14)
Wed, Oct. 14, 8:20 AM
- Q4 income of $5.8B of $1.05 per share vs. $5.7B and $1.02 one year ago.
- ROA of 1.32% down eight basis points, ROE of 12.62% down 48 bps. Efficiency ratio of 56.7% improved 100 bps. Net interest margin of 2.96% down ten basis points.
- Noninterest income of $10.4B rose from $10B in Q2, with mortgage banking noninterest income of $1.6B slipping $116M. Residential mortgage originations of $55B slipped $7B.
- Total loans of $903.2B rose $14.8B during the quarter.
- Total average deposits of $1.2T rose 5% annualized during the quarter and 6% from a year ago. Average deposit cost of eight basis points slipped two bps from a year ago.
- Fully phase-in CET 1 ratio of 10.7%. 51.7M shares repurchased during quarter.
- Conference call at 10 ET
- Previously: Wells Fargo EPS in-line, beats on revenue (Oct. 14)
- WFC -0.9% premarket
Wed, Oct. 14, 8:04 AM
Tue, Oct. 13, 5:30 PM
Wells Fargo & Co is a diversified financial services company. It provides retail, corporate and commercial banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions.
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