Wells Fargo & Co.

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  • May 21, 2015, 9:30 AM
    • Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
    • New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
    • The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), salesforce.com (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
    | May 21, 2015, 9:30 AM | 76 Comments
  • May 6, 2015, 3:17 PM
    • In its 10-Q filing today, Wells Fargo (WFC -2%) said it could suffer as much as $1.2B in losses over and above its legal reserves, up from $1.1B the previous quarter.
    • The bank also said loans to oil and gas companies on "non-accrual" increased 26% to $96M. The size of Wells' energy portfolio is $18.48B, or about 2% of the total loan portfolio, and energy loans make up 14% of all C&I loans classified as non-accrual.
    | May 6, 2015, 3:17 PM | 4 Comments
  • May 5, 2015, 8:16 AM
    • "Wells Fargo (NYSE:WFC) has generated a virtual fee-generating machine, through which its customers are harmed, its employees take the blame, and Wells Fargo reaps the profit,” according to the lawsuit filed by L.A. City Attorney Mike Feuer.
    • At issue are high-pressure sales quotas driving employees to open unauthorized accounts for customers and stick them with bogus fees. Wells, of course, likes to boast about its "cross-selling" success.
    • The bank blames the problems on a few rogue employees who have already been fired or disciplined. The suit: "On the rare occasions when Wells Fargo did take action against its employees for unethical sales conduct, Wells Fargo further victimized its customers by failing to inform them of the breaches, refund fees they were owed, or otherwise remedy the injuries that Wells Fargo and its bankers have caused."
    • Source: L.A. Times
    | May 5, 2015, 8:16 AM | 11 Comments
  • May 1, 2015, 3:05 AM
    • More than seven years after the global financial collapse, regulators and investors are still working through a mile-high pile of lawsuits and other civil actions, and it seems like the fines keep on coming.
    • Since the crisis, banks and other institutions have paid more than $150B in fines, settlements and other penalties, according to a tally by FT. That compares with the roughly $700B in profits generated by U.S. banks between 2007 and 2014.
    • So where have all the payments gone? The biggest have landed in the Justice Department, which has collected some $50B. Other heavy collectors include the FHFA, Fannie Mae, HUD and the SEC.
    • Among the banks paying the biggest amounts, BofA (NYSE:BAC) tops the list - with nearly $58B, followed by JPMorgan (NYSE:JPM) ($31.3B), Citigroup (NYSE:C) ($12.8B) and Wells Fargo (NYSE:WFC) ($9.7B).
    | May 1, 2015, 3:05 AM | 37 Comments
  • Apr. 29, 2015, 2:30 PM
    • With slimming margins putting a lid on the borrow short/lend long business, Wells Fargo (WFC +0.4%) looks to insurance as a growth center, and has hired or reallocated about 50 executives to the business in recent months.
    • Insurance recently accounted for 4% of Wells' noninterest income, or 2% of revenue.
    • The moves are especially notable because it wasn't long ago the bank was slimming that business - in 2013, Wells fell to #8 of the world's largest insurance brokers, down from #5 the year earlier (revenue fell 14.3% to $1.35B).
    • The next step, says Laura Schupbach, head of Wells Fargo Insurance, is to leverage the bank's existing customer base - whether middle-market clients or those taking out mortgages - to pick up their insurance through the lender.
    • Source: WSJ
    | Apr. 29, 2015, 2:30 PM | 3 Comments
  • Apr. 28, 2015, 2:39 PM
    • Wells Fargo (NYSE:WFC) declares $0.375/share quarterly dividend, 7.1% increase from prior dividend of $0.35.
    • Forward yield 2.71%
    • Payable June 1; for shareholders of record May 8; ex-div May 6.
    | Apr. 28, 2015, 2:39 PM | 3 Comments
  • Apr. 21, 2015, 9:37 PM
    • "This whole discussion today about when interest rates move is torture for us,” said U.S. Bancorp (NYSE:USB) CEO Richard Davis on last week's earnings call. “I remain very optimistic for the economy … a little less optimistic for the bankers until interest rates start to move up.”
    • Earlier today, Regions Financial (NYSE:RF) and Fifth Third (NASDAQ:FITB) became the latest in a line of lenders reporting slimming net interest margins. For Regions, the average yield on its loan portfolio fell to 3.45% from 4.03% a year ago. "You’re trying to book the prudent loans that you have the opportunity to, but with the level of competition in the market, it’s hard to move those rates up absent some kind of interest-rate increase," said Regions chief Grayson Hall on the earnings call.
    • On average, U.S. banks with more than $10B in assets showed a NIM of 2.97% in Q4, the lowest level in 25 years according to the FDIC ... And it got worse in Q1. Six of the nine big commercial banks reporting so far - including Wells Fargo (NYSE:WFC) and PNC Financial - had Q1 margins lower than Q4.
    • Bank of America (NYSE:BAC) and Regions - two banks seen as particularly sensitive to interest rates - are unsurprisingly the worst performers in the KBW bank index (NYSEARCA:KBE) this year, off 13.9% and 9.3% respectively.
    • What to do? Regions, for one, is trying to emulate the Wall Street big boys by bulking up its wealth management and capital markets operations. And maybe there's some more fat to trim. “We’re going to turn up the heat on expenses…and we’ll see where we get to,” said PNC boss William Demchak on last week's conference call.
    • Source; WSJ's Peter Rudegeair
    | Apr. 21, 2015, 9:37 PM | 9 Comments
  • Apr. 20, 2015, 12:36 PM
    • Moving quickly on its promise to get out of the banking business, General Electric (GE -0.2%) is in talks with Wells Fargo (WFC +0.7%) and others to sell its $74B commercial lending division - an operation which makes loans to midsize U.S. companies.
    • Should a deal be reached, it would mean GE would have already sold about half of the $200B in assets the company hopes to move off the books in the next two years.
    • Source: WSJ
    • Previously: WSJ: GE in talks to sell commercial lending business (April 20)
    | Apr. 20, 2015, 12:36 PM | 14 Comments
  • Apr. 20, 2015, 12:16 PM
    | Apr. 20, 2015, 12:16 PM | 34 Comments
  • Apr. 14, 2015, 3:45 PM
    | Apr. 14, 2015, 3:45 PM
  • Apr. 14, 2015, 10:51 AM
    • It starts with the customer, says Wells Fargo (WFC -1.7%) management on the earnings call, and customers tell us they want branches. Responding to a question about whether investments in technology are going to be a negative if they're not offset with branch closings, management says all channels are important, and both branches and mobile help link them. "We're as much an information provider as we are financial services."
    • Webcast and earnings supplement
    • Credit cards are one of the bank's biggest opportunities, says CEO John Stumpf, noting 729K new accounts in Q1, 19% more than a year ago. Outstanding balances are up 15%, in part thanks to the Dillard's purchase.
    • The country's largest auto lender, Wells backed away a bit in Q1, making $7.1B in auto loans in Q1, down 10% Y/Y. The loan-loss rate slipped to 0.73% from 0.81% a year ago.
    • Live blog on WSJ
    • Previously: Wells Fargo beats by $0.06, beats on revenue (April 14)
    • Previously: Wells Fargo slips early despite topping views (April 14)
    | Apr. 14, 2015, 10:51 AM | 2 Comments
  • Apr. 14, 2015, 8:13 AM
    • Q1 net income of $5.8B or $1.04 per share vs. $5.9B and $1.05 one year ago. ROE of 13.17% vs. 14.35%.
    • Net interest income of $10.986B up 3% Y/Y, with net interest margin slipping to 2.95% from 3.20%. Efficiency ratio of 58.8% vs. 57.9%.
    • Community Banking net income of $3.665B vs. $3.844B one year ago. Provisions of $617M vs. $419M. Noninterest expense of $7.064B vs. $6.774B.
    • Wholesale Banking net income of $1.797B vs. $1.742B a year ago on revenue of $5.912B vs. $5.580B.
    • Wealth, Brokerage and Retirement net income of $561M vs. $475M. Retail brokerage client assets of $1.4T up 4% Y/Y. Wealth Management client assets of $226B up 4%. Retirement IRA assets of $365B up 6%.
    • CET 1 ratio of 10.53%. Common share float down 7.4M since Q4.
    • Conference call at 10 ET.
    • WFC -0.7% premarket.
    • Previously: Wells Fargo beats by $0.06, beats on revenue (April 14)
    | Apr. 14, 2015, 8:13 AM
  • Apr. 14, 2015, 8:02 AM
    • Wells Fargo (NYSE:WFC): Q1 EPS of $1.04 beats by $0.06.
    • Revenue of $21.3B (+3.3% Y/Y) beats by $60M.
    | Apr. 14, 2015, 8:02 AM
  • Apr. 13, 2015, 5:30 PM
  • Apr. 13, 2015, 12:21 PM
    • Swimming against the regulatory currents, Wells Fargo (WFC +0.6%) is expanding its investment-banking unit, bolstering trading assets, and building up overseas offices, writes Emily Glazer.
    • The bank in 2014 earned $1.71B in fees from investment banking, up 77% from 2010, and should get another boost from its purchase (along with Blackstone and others) of $26.5B in real estate assets from GE (Wells is also an adviser on the deal).
    • So far, Wells remains a favorite of regulators despite the investment-banking push, mostly because it's still a small player (the bank ranks ninth in U.S. investment-banking fees). But this year, Wells Fargo has collected 5.2% of all U.S. IB revenue - more than Credit Suisse and Deutsche Bank - and the bank's market share is up to 7th from 9th, according to Dealogic.
    • Jefferies Ken Usdin cautions Wells has to be careful investment-banking doesn't grow so big as to jeopardize the bank's reputation for steady earnings growth. Investment banking profits, after all, tend to be somewhat volatile.
    • And what of Wells moving out of its comfort zones in order to book a fee? “We drive faster and safer with a seat belt and air bags,” says Chairman John Stumpf.
    | Apr. 13, 2015, 12:21 PM | 1 Comment
  • Apr. 10, 2015, 6:46 AM
    • GE decides the time is right to get out the banking business and plans to sell nearly all GE Capital assets over the next 24 months, excepting the financing verticals relating to the company's industrial businesses - GE Capital Aviation Services, Energy Financial Services, and Healthcare Equipment Finance.
    • As part of the plan and as leaked yesterday, GE agrees to the sale of nearly all of the assets of GE Capital Real Estate to Blackstone (NYSE:BX) and Wells Fargo (NYSE:WFC). GE also has LOIs from other buyers for another $4B in property. The total amount of the sales comes to about $26.5B.
    • Under the restructuring, GE expects more than 90% of its earnings will be generated by industrial businesses by 2018 - that's up from 58% last year.
    • For 2015, the company's industrial businesses remain on track to generate operating EPS of $1.10-$1.20.
    • GE has identified the potential to return $90B to shareholders in dividends, buybacks, and the Synchrony Financial (NYSE:SYF) separation through 2018, and has authorized a new buyback program of up to $50B. The company expects to reduce share count to 8B-8.5B by 2018 (it's currently 10B).
    • Shares +1.8% premarket.
    | Apr. 10, 2015, 6:46 AM | 70 Comments
Company Description
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.
Sector: Financial
Country: United States