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Wells Fargo’s Loan Growth Outpaces Bank of America and Its Peers



Loan growth

With a healthy balance of consumer and commercial loans, Wells Fargo’s (WFC) loan portfolio is the largest in the financial sector (XLF). In 2015, its loan portfolio reflected robust organic growth and benefited from its acquisition of GE Capital’s loan portfolio.

In 4Q16, Wells Fargo had a $964 billion loan portfolio. In comparison, its peers JPMorgan Chase (JPM) and Bank of America (BAC) had loan portfolios of $894 billion and $900 billion, respectively.

Loan growth is a key revenue driver for Wells Fargo. Prolonged low interest rates have subdued net interest yields on the bank’s loan portfolios. However, substantial deposit and loan growth has offset this effect, boosting its overall net interest income.

Wells Fargo’s loan growth is among the highest in the banking sector. From 2014–2016, Wells Fargo’s (WFC) loan portfolio grew 13%, second only to JPMorgan Chase’s 16% loan growth. In comparison, the loan portfolios of Citigroup (C) and Bank of America (BAC) contracted 3% and 7%, respectively.

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