Tue, Jan. 26, 4:22 PM
- Alongside declaration of its $0.375 per share quarterly dividend, Wells Fargo (NYSE:WFC) lifts its buyback authorization by 350M shares. The current float is about 5.1B shares.
- The stock's higher by 1.3% after hours.
Fri, Jan. 15, 8:29 AM
- Q4 net income of $5.71B or $1.03 per share vs. $5.71B and $1.02 a year ago.
- ROA of 1.27% down 9 basis points Y/Y; ROE of 12.23% down 61 bps. Efficiency ratio of 57.4% improves from 59%. Net interest margin of 2.92% down four basis points from last quarter, down 12 basis points from a year ago.
- Net charge-offs as a percent of average loans of 0.36% up from 0.34%. Credit losses in Q4 of $831M up from $703M in Q3 mostly thanks to $90M in higher energy portfolio losses.
- Conference call at 10 ET
- Previously: Wells Fargo beats by $0.01, misses on revenue (Jan. 15)
- WFC -2.25% premarket amid a big slump in equity index futures.
Fri, Jan. 15, 8:08 AM
- Wells Fargo (NYSE:WFC): Q4 EPS of $1.03 beats by $0.01.
- Revenue of $21.6B (+0.7% Y/Y) misses by $200M.
Thu, Jan. 14, 5:30 PM
Tue, Jan. 12, 12:16 PM
- Wells Fargo (WFC +1.4%) is rarely cheap enough to buy, says KBW's Chris Mutascio, but a 6% slide over the past month gives investors just that chance.
- The bank has a premium valuation, but it's warranted thanks to a projected 2016 ROA of 1.32% vs. peers at just 1%. Only U.S. Bancorp is expected to perform better on this metric, and it trades a premium to even Wells Fargo.
- Mutascio also takes note of the bank's leverage to rising rates and potential upside to estimates thanks to the pending purchases of GE Capital assets.
- He upgrades to Outperform with $60 price target.
Mon, Jan. 11, 8:56 AM
- Investors may be too pessimistic on banks' ability to meet earnings expectations, says analyst Richard Ramsden, citing tailwinds like higher interest rates, a healthier U.S. consumer, manageable credit headaches, and possibly boosted capital returns.
- Wells Fargo (NYSE:WFC), he says, has the clearest path to meeting 2017 estimates. The bank will be a "liftoff winner," says Ramsden, as its retail, small balance deposit base is likely to see little pricing pressure during the first few Fed rate hikes.
- Wells also faces the least downside this year if oil prices slip, China slows, and rates stay flat. It also has potential upside from its GE Capital purchases.
- He upgrades to Buy with $60 price target. The stock's up 1.2% premarket to $50.16.
- Pulled from Goldman's Buy list is JPMorgan (NYSE:JPM) after a period of outperformance (it's about flat Y/Y after last week's steep slide). The price target is cut to $69 from $75. The stock's off 0.2% to $58.80 premarket.
Mon, Jan. 4, 9:02 AM| Mon, Jan. 4, 9:02 AM
- December monthly performance was: -0.5%
- 52-week performance vs. the S&P 500 is: -3%
- $0.25 in dividends were paid in December
- Top 10 Holdings as of 11/30/2015: Apple Inc (AAPL): 3.5%, Microsoft Corp (MSFT): 3.48%, Exxon Mobil Corporation (XOM): 3.24%, General Electric Co (GE): 3.13%, AT&T Inc (T): 2.94%, Verizon Communications Inc (VZ): 2.68%, Johnson & Johnson (JNJ): 2.24%, Wells Fargo & Co (WFC): 2.19%, Chevron Corp (CVX): 2.12%, Pfizer Inc (PFE): 2.04%
Dec. 25, 2015, 4:50 AM
- Commerzbank (OTCPK:CRZBY) is suing four banks in the U.S., claiming that they failed to properly monitor billions of dollars in toxic MBSs acquired by the German lender before the 2008 financial crisis.
- BNY Mellon (NYSE:BK) and units of Deutsche Bank (NYSE:DB), Wells Fargo (NYSE:WFC) and HSBC (NYSE:HSBC) were named in the lawsuits.
Dec. 22, 2015, 12:24 PM
- Credit Suisse (NYSE:CS) recently filed an arbitration claim with Finra alleging UBS's Americas wealth management unit unfairly raided its U.S. private-banking business over the past several months. About 70 of 300 brokers from Credit Suisse have move to UBS of late.
- Source: WSJ
- Credit Suisse, of course, is in the process of winding down its U.S. private bank, with brokers supposed to be moving their business to Wells Fargo (NYSE:WFC), which is very much interested in growing its wealth-management operation.
- Credit Suisse brokers who have joined UBS have received threatening letters about possible punitive action.
- One issue naturally comes down to pay, with UBS offering richer packages than Wells Fargo, according to some. Another is Wells Fargo's high net-worth-client operation which pales in comparison to more established players like UBS, BofA, and Morgan Stanley.
Dec. 16, 2015, 2:32 PM
- Wells Fargo (NYSE:WFC) wastes no time in hiking its prime rate to 3.50% from 3.25%, effective tomorrow. There's no word on deposit rates, so one assumes they're remaining the same. Now we know why The Oracle is such a fan!
- Previously: Fed projections: 1.4% Fed Funds by the end of 2016 (Dec. 16)
- Previously: Fed officially puts an end to ZIRP (Dec. 16)
Dec. 10, 2015, 1:12 PM
- Raymond James (NYSE:RJF), Bank of New York Mellon (NYSE:BK), Northern Trust (NASDAQ:NTRS), and Bank of America (NYSE:BAC) are best-positioned in the event of a one-and-done move from the Fed, says Goldman, as they get most the earnings upside from the initial move higher in rates, rather than needing "normalization."
- "Deposit betas" may be a source of underappreciated surprise, says Goldman, which doesn't believe banks will pass along much of the initial 50 basis point hike in rates to customers. Poised to benefit here: JPMorgan (NYSE:JPM), BofA, Wells Fargo (NYSE:WFC), PNC Financial (NYSE:PNC), and E*Trade (NASDAQ:ETFC).
- Finally, clarity on the interest rate picture should allow bank managements to get moving in growing returns, Favored "self-help" stories: AIG, Ally Financial (NYSE:ALLY), Oaktree Capital (NYSE:OAK), Voya Financial (NYSE:VOYA), and Zions Bancorp (NASDAQ:ZION).
Dec. 8, 2015, 11:41 AM
- "It's not like the [wealth management] business is not great," says CEO John Stumpf. "It just could be a whole lot bigger." The bank's wealth and investment management business earns about $2.5B a year, and has the potential to make "a number of factors times that," he says.
- Initiatives: Wells Fargo (WFC -0.8%) cut a deal in October with Credit Suisse to get the inside track on recruiting CS's private bank employees. Also, Wells is going after wealth management customers at other firms, with Stumpf noting the bank has 11% of the nation's deposits, but manages only 1-2% of its wealth.
Dec. 3, 2015, 2:24 AM
- Eight of the biggest U.S. banks have been downgraded by Standard & Poor's, following a rule approved by the Fed in October that will require large institutions to hold a stockpile of debt that can be converted into equity if they falter.
- "We now consider the likelihood that the U.S. government would provide extraordinary support to its banking system to be uncertain," S&P said in the statement.
- Firms affected include JPMorgan (NYSE:JPM), BofA (NYSE:BAC), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), BNY Mellon (NYSE:BK) and State Street (NYSE:STT).
Dec. 1, 2015, 7:09 AM| Dec. 1, 2015, 7:09 AM
- 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%
Nov. 30, 2015, 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.
Nov. 17, 2015, 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.
Wachovia Corp. provides commercial and retail banking services. The company offers personal finance and wealth management services. It was founded in 2001 and is headquartered in Charlotte, NC.
Industry: Money Center Banks
Country: United States
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