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Wells Fargo & Co. (WFC)

  • Jun. 5, 2014, 11:30 AM
    • The bank today launches a survey of about 250 middle-market companies' international growth to get a better idea of where said growth is coming from, what the business environment looks like, and their top concerns.
    • Wells Fargo (WFC +0.3%) does have a presence in 35 countries outside the U.S., but its global banking operations pale in comparison to its big bank peers. The bank works with about 25% of U.S. middle-market companies - defined as those with revenue between $20M and $500M. Of those companies about 25% have operations overseas.
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  • Jun. 2, 2014, 9:37 AM
    • Hard to believe it's taken this long, but Wells Fargo (WFC) will be requiring nearly all new customers to pay interest and principal on home equity loans from inception. Typically, home equity lines and loans had 10-year interest only periods - never a concern when house prices only went higher, but already hitting some who took out loans a decade a ago, and about to hit a lot more in coming years.
    • "The product should be designed to protect the consumer for the long term,” says Brad Blackwell, a mortgage executive at Wells Fargo. “We took this move not only because it’s the right thing to do for our customers, but because we’d like to lead the industry to a more responsible product.”
    • Wells is the gorilla in home-equity lending, with a 14% market share, and JPMorgan - ranked #3 - is reportedly evaluating a similar policy.
  • May. 30, 2014, 7:12 AM
    • A group of institutional investors sued Wells Fargo (WFC) in 2010 for marketing a securities lending scheme as safe, but instead invested funds in risky products like MBS, leading to big losses. The agreement to settle now goes to a judge for approval.
  • May. 29, 2014, 7:31 AM
    • As at least one city returns to old complaints about redlining, Wells Fargo (WFC) continues to have to deal with accusations of the opposite as a U.S. judge denies the bank's bid to dismiss a Los Angeles suit over predatory lending practices. L.A. has filed suits over this matter against Ciitgroup and Bank of America as well.
  • May. 28, 2014, 11:27 AM
    • "We're very U.S.-centric," says Wells Fargo (WFC) CFO John Shrewsberry, in a "fireside chat" at the Deutsche conference. "We're likely to remain that way." Shrewsberry is talking about Wells' investment bank, and while he expects to pick up market share greater than the current 6% in the U.S., he doesn't anticipate growing overseas.
  • May. 22, 2014, 1:25 PM
    • "There is no company in the country better positioned to take advantage of the shift in government mortgage policies," says Dick Bove. "The internal adjustments made by the bank in pricing servicing and in the cost of originating loans suggest that mortgage activity will be a big source of company income very soon."
    • Bove's note on Wells Fargo (WFC +0.6%) comes following the bank's investor day, and after new FHFA director Mel Wall signaled a shift in focus for the GSEs from pulling back from the mortgage market to one of making housing credit more readily available.
    • Deutsche's Matt O'Connor isn't as impressed, wondering how GDP growth can accelerate if underwriting standards remain tight, business stays sluggish at the big banks, and the Fed continues to scale back its monetary ease.
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  • May. 20, 2014, 12:05 PM
    • 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
  • May. 16, 2014, 7:21 AM
    • Wells Fargo (WFC) opened an office in Aberdeen this week, hoping to get a piece of Scotland's east coast oil business as part of its U.K. expansion. The bank now has 930 people in EMEA, up from 600 at the start of 2012. Of those 930, 721 are in the U.K.
    • The bank doesn't break out European earnings, but EMEA chief Jim Johnston says revenues have grown by at least 10% in each of the past three years.
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  • May. 14, 2014, 10:17 AM
    • Among those started at Buy is M&T Bank (MTB -0.9%), with analyst Bill Carcache noting the usually strong performer has lagged over the past 16 months amid regulatory issues and the delay of the Hudson City Bancorp (HCBK -1%) acquisition. Carcache expects approval this year, along with meaningful operating efficiency improvements. "We believe MTB shares are trading at a significant discount to their intrinsic value and expect to see meaningful share price appreciation through 2015."
    • Also a Buy is Wells Fargo (WFC -0.8%), with Carcache seeing the bank as well-positioned if the economic recovery remains muted thanks to a combination of fee income and expense control.
    • Started at Reduce with $40 price target is Comerica (CMA -1.7%), with Carcache saying the stock price has gotten ahead of itself.
    • See also: More on Nomura's wide-ranging new bank coverage
  • May. 9, 2014, 3:26 PM
    • Jumbos are growing while almost everything else is dead,” says FBR's Paul Miller. “Big banks need loan growth. If they were getting decent commercial loan growth, they wouldn’t be so aggressive on competing for jumbos.”
    • As the rest of the home loan market contracts (sharply), applications for jumbo mortgages (above $729K) were up 4.9% Y/Y in March. Another reason for banks plowing into jumbos: They don't have to pay the higher guarantee fees charged by the GSEs, allowing them to actually charge lower rates than on conforming loans. At Wells Fargo (WFC), the current rate for a 30-year fixed jumbo mortgage of 4.13% is 12 basis points less than that for a conventional mortgage loan.
    • JPMorgan (JPM) is boosting its efforts and created a special process to review all declined loans to make sure the decisions make sense. It also has a group working with wealthier clients who have more complex financial situations, such as being self-employed. The bank's jumbo mortgage originations accounted for 21% of all mortgages in Q1, up from 10% a year earlier.
    • At Bank of America (BAC -1.7%) the down payment required for most jumbos less than $1M was cut this year to 15% from 20%, and nonconforming originations in Q1 were 37% of all mortgages vs. 22% last year.
  • May. 8, 2014, 3:15 PM
    • The Fed today releases for comment a proposed rule prohibiting a financial company from merging with another if their combination's liabilities would exceed 10% of the total of all financial companies.
    • The move is another step in implementing the intent of the Dodd-Frank financial reform act. Comments are due by July 8.
    • Only JPMorgan (JPM +0.5%), Bank of America (BAC +0.6%), Citigroup (C +0.7%), and Wells Fargo (WFC -0.2%) would be affected - at least in the short term - says the Financial Stability Oversight Council.
  • May. 6, 2014, 10:02 AM
    • In an effort to lure more wealthy customers, Wells Fargo (WFC -0.6%) - through a partnership with American Express (AXP -0.7%) - is launching two new cards offering rewards to big everyday spenders or frequent fliers who also have another account with the bank. The new cards - Propel 365 and Propel World - offer up to an extra 50% in reward points depending on the size of a customer's accounts.
    • Just 3% of consumers who charge more than $100K annually on their credit cards do it through a Wells Fargo product, according to a recent Wells presentation. At JPMorgan's February investor day, a slide showing what cards affluent customers choose didn't include Wells Fargo on the page. "We know we're under-penetrated in this customer base," says Beverly Anderson, the head of Wells' consumer financial services group.
  • May. 5, 2014, 10:20 AM
    • A check of the global banks finds the group pacing market declines in morning action after Friday night's warning on Q2 trading revenue from JPMorgan (JPM -2.2%).
    • Nomura's Steven Chubak is first out with lower JPMorgan earnings estimates.
    • Jim Cramer sums up sentiment: "This has been a house of pain. You can't own these right now. You just can't."
    • Morgan Stanley (MS -1.9%), Goldman Sachs (GS -1.5%), Citigroup (C -1.2%), and Bank of America (BAC -1%), Deutsche Bank (DB -1.2%). Far less trading dependent than the other Too Big Too Fails is Wells Fargo (WFC -0.2%).
    • The iShares DJ U.S. Broker-Dealer ETF (IAI -1.2%)
    • XLF -0.7%, KBE -0.8%
  • May. 2, 2014, 3:42 AM
    • Goldman Sachs (GS) and Morgan Stanley (MS) are on a Fed list of 15 U.S. and foreign financial firms that "may pose elevated risks to U.S. financial stability" and so will receive extra supervision by a cross-disciplinary special unit called the Large Institution Supervision Coordinating Committee.
    • Other firms on the list include JPMorgan (JPM), Bank of America (BAC), AIG (AIG), GE (GE), Citigroup (C), Wells Fargo (WFC), State Street (STT), Prudential Financial (PRU), Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB) and UBS (UBS).
    • As a major clearing and custody bank, Bank of New York Mellon (BK), will also receive the extra attention.
  • Apr. 29, 2014, 4:10 PM
    • Wells Fargo & Co. (WFC) declares $0.35/share quarterly dividend, 17% increase from prior dividend of $0.30.
    • Forward yield 2.83%
    • Payable June 1; for shareholders of record May 9; ex-div May 7.
  • Apr. 25, 2014, 9:43 AM
    • The analyst team at BMO Capital warms up to Wells Fargo (WFC -0.2%) while cooling on Fifth Third Bancorp (FITB -1%), upgrading the former to Outperform while cutting the latter to Market Perform.
    • The trend is your friend: Wells Fargo is ahead 8.5% this year, while Fifth Third is about flat.
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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