Wells Fargo Tops Profit Estimates, Raises Return Target
Wells Fargo targets a 17%-18% return on tangible common equity after the Federal Reserve ended a $1.95 trillion asset cap tied to a fake accounts scandal, CEO Scharf said.
- Wells Fargo beat Wall Street profit estimates for the third quarter and raised its target for return on tangible common equity to 17%-18% after regulators lifted a $1.95 trillion asset cap imposed on the bank.
- Wells Fargo reported a net income of $5.59 billion for the third quarter, surpassing last year's $5.11 billion.
- Investment banking fees increased by 25% to $840 million, supported by major deals like Union Pacific's $85 billion acquisition of Norfolk Southern.
- CEO Charlie Scharf noted that despite economic uncertainty, Wells Fargo has seen strong credit performance and resilience in the U.S. economy.
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11 Articles
Wells Fargo tops profit estimates, raises return target
Wells Fargo has today beaten Wall Street estimates for third-quarter profit and raised its closely watched profitability target after regulators removed an asset cap imposed on the bank, paving the way for it to pursue growth.
Wells Fargo Boosts Key Profitability Metric as Asset Cap Removed
Wells Fargo & Co. raised a key profitability metric, giving its first major update about the bank’s next growth target after the removal of regulatory restraints it had operated under for more than seven years.
Wells Fargo Shifts Focus to Growth and Returns After Removal of Regulatory Constraints
A little over four months after the removal of an asset cap that had been imposed by the Federal Reserve, Wells Fargo aims to shift the conversation from the improvements it made to earn that achievement to the work it has done to improve growth and returns. “Wells Fargo, without the regulatory constraints and with the changes we have made, is a significantly more attractive company than what we were several years ago, and we believe t…
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