Wells Fargo & Co
Wells Fargo Abandons Plans to Cancel Existing Personal Lines of Credit
Eyeing a New Bank or Credit Union? Here's How to Make the Switch
What to Do If You Have a Personal Line of Credit With Wells Fargo
Must-know update: Are retail sales poised for a spring surge?
For the week ended March 15, retail same-store sales grew 0.7% and 1.5% week-on-week and year-on-year, respectively.
Morgan Stanley Investment Management Thrives in 2Q15
Morgan Stanley’s (MS) Investment Management segment reported a 7% increase, bringing total revenues to $751 billion compared to $705 billion in 2Q14.
Ford Credit’s 2Q15 Profits Rise on Higher Volumes
We’ve seen the 2Q15 performance of Ford’s (F) automotive operations. Now, we’ll look at how Ford Credit contributed to Ford’s 2Q15 profits.
How Would Rising Charge-Offs Impact Major Banks’ Earnings?
To make the most of growing consumer spending, major banks focused on their consumer banking business. They’re lending out more consumer loans.
Scale: A Boon or Bane for Apple and Warren Buffett?
For Apple, as Buffett noted during last year’s shareholder meeting, there aren’t a lot of acquisition opportunities that fit into its scale.
Morgan Stanley’s Strong Revenue Model
Morgan Stanley charges fixed fees and performance fees for asset management services, products and services, and administration of accounts.
After a Lackluster 2Q15, Return on Equity Will Likely Improve
Wall Street analysts expect Goldman Sachs to post return on equity (or ROE) of 11.5% in 3Q15. In 3Q14, ROE for Goldman Sachs was 11.8%.
3-Year Treasury Notes’ Overall Demand Fell on July 7
The US Treasury holds monthly auctions of three-year Treasury notes. The latest auction was held on July 7.
GS Cuts More Jobs than It Did during the 2008 Financial Crisis
Goldman Sachs has been cutting costs in recent quarters. In 2016, 2,600 people may have lost their jobs at GS—the highest number since the financial crisis.
5 Big Banks to Report Their Earnings this Week
This week, five of the top six commercial and investment banks will report their quarterly earnings.
JPMorgan’s Trading Revenues Fall 7% in 2Q15
JPMorgan’s revenues from fixed income markets declined 10% year-over-year in the second quarter of 2015. The drop excludes the impacts of one-off items.
How Global Weakness Drags down Wells Fargo’s Profitability in 4Q15
Two key elements gripping the US banking sector and Wells Fargo include the near-zero interest rate and global uncertainty, which have dampened earnings.
Must-know: Why did Omega Advisors exit its Wells Fargo position?
Omega Advisors Inc. is a New York–based investment advisory firm founded in 1991 by Leon G. Cooperman. Omega sold a 1.05% position in Wells Fargo.
Why Wells Fargo’s Energy Loan Losses Could Rise in 2Q16
At Wells Fargo’s investor day presentation, chief financial officer John Shrewsberry warned investors of more losses on energy-related loans.
Is Citigroup’s Restructuring Exercise Benefiting the Company?
Citigroup’s CEO, Michael Corbat, continued his efforts to try to slim down the company’s operations and clean up its balance sheet in the second quarter.
Can JPMorgan Beat Analysts Estimates in 2Q16?
In the past few quarters, JPMorgan has posted better-than-expected earnings and has topped revenue estimates.
What Impacted Wells Fargo’s First Quarter Earnings?
Wells Fargo’s first quarter earnings surpassed expectations but fell 5% YoY (year-over-year). The net interest income increased by 6% to $11.7 billion.
Citigroup’s Focus on Efficiency Could Boost Its Profitability
Citigroup’s 2Q15 efficiency ratio was 56% and was 66% in 3Q14. The bank has focused on efficiency through cost controls and exiting low-return segments that led to a lower efficiency ratio.
Why JPMorgan and Wells Fargo Are Trading at High Multiples
In spite of a rather weak performance, Wells Fargo (WFC) commands the highest premium due to its strong franchise, mortgage concentration, and high net interest margins.
Why Wells Fargo leads in loans
The bank has always focused on its bread and butter revenue-earning stream: loans. Over the years, Wells Fargo slowly realized its goal of achieving a strong market share in lending.
Interest Rate Expectations Have Jolted Equity and Debt Alike
Asset managers (VFH) are seeking stability in order to attract funds toward either equity or debt offerings.
Will Dividends Please Wells Fargo’s Investors Worried about Scandals?
In June, the Federal Reserve approved Wells Fargo’s (WFC) capital plans after it found that the bank could keep lending in a severe economic downturn.
What Do Analysts Recommend for JPMorgan Chase and Wells Fargo?
In a Bloomberg survey of 37 analysts, 19 analysts (51%) have assigned a “buy” rating to Wells Fargo (WFC) while 13 (35%) have rated it as “hold.” The stock currently has five “sell” ratings.
How Did Bank of America Perform on 2016 Stress Tests?
Bank of America boosted its dividends by 50% to $0.075 after it cleared the Fed’s 2016 stress tests.
Does Citigroup Look Attractive at Its Current Valuations?
Currently, Citigroup trades at a discount of 40% to its book value. It trades cheaper than peers such as JPMorgan Chase, Wells Fargo, and Goldman Sachs.
Major Litigations End, but Bank of America Faces New Challenge
In March, the Fed issued a conditional non-objection to Bank of America’s capital plan. It must resubmit its plan and address certain weaknesses.
Why Buffett Believes US Businesses Aren’t Really Hurting from the US Corporate Tax
The US economy has been improving gradually, but some businesses in the US have suffered a lot over the years.
Bank of America’s Efficiency Could Improve to 63% in 2017
Bank of America (BAC) has put in place a strong expense control mechanism that has resulted in lower growth in operating expenses compared to revenues.
JPMorgan Chase Gained 4% after Its 1Q16 Earnings: Was It That Good?
On April 13, JPMorgan Chase reported 1Q16 earnings of $1.35 per share. It beat consensus estimates of $1.28. Its shares rallied 4.2% after the earnings beat.
Did the Fed Really Hint About a Negative Interest Rate?
A negative interest rate policy (or NIRP) may still be a far-fetched idea in the United States, but the Federal Reserve wants banks to prepare for it.
US Banking Sector: Key Trends and Outlook
Changes in technology have reshaped the banking sector. Banks are increasingly collaborating with fintech firms to improve their customer service.
XLF May Cross Its 100-Day Moving Average: Is It Time to Buy?
The Financial Select Sector SPDR ETF (XLF) attracts the most attention among financial ETFs in the US. 87% of the fund is composed of large-cap stocks.
Why Wells Fargo has the highest net interest margin
Maintaining a high net interest margin has always been part of Wells Fargo’s (WFC) strategy. Wells Fargo has consistently been better than the industry’s average net interest margin.
Must-know: Putting the price–to-book value ratio in perspective
We explored the most commonly used valuation metric for financial companies—the price-book value. We also understood the relation between price-book value and return on equity.
Investment-Grade Corporate Bonds’ Issuance Fell Last Week
Investment-grade corporate bonds worth $28.8 billion were issued in the primary market in the week to May 27, 2016.
What’s Charles Schwab’s Valuation?
Charles Schwab (SCHW) has a price-to-earnings ratio of 20.80x on an NTM (next-12-month) basis.
Understanding PayPal’s Choice Transition
PayPal reported that its payment transaction per active account increased 12.0% year-over-year in 1Q17.
Must-know: Future impacts of financial stability measures
The Fed currently uses considerable staff resources in monitoring financial markets for risks arising from financial instability.
Must-know: Is Wells Fargo making boring attractive for investors?
Wells Fargo’s (WFC) broad operation level strategy over the long run can be described by two words—slow and steady. It doesn’t take many risks. It’s stable and boring.
Buffett’s Berkshire Hathaway opens a position in Liberty Global
International cable company Liberty Global (LBTYA) is a new 0.25% position initiated by Berkshire Hathaway in 4Q. Liberty Global operates in 14 countries, including 12 European countries.
T-Notes Auction: Poor Demand amid the FOMC Meeting
The overall demand fell for the seven-year T-notes auction because the FOMC meeting didn’t give any clarity regarding an interest rate hike in the future.
Financial ETF XLF Traded below Its Moving Averages on December 11
This series analyzes investors’ sentiments toward the financial sector in the major global regions: the United States, Europe, China, Japan, and the Emerging Market economies.
JPMorgan Chase Could Beat the Fourth-Quarter Estimates
JPMorgan Chase (JPM) is scheduled to announce its fourth-quarter financial results on January 15.
The State of Treasury Yield Spreads in 2015
Yield spreads between different maturity Treasury securities, when compared to historical trends, can indicate how the market views economic conditions.
Must-read: Key takeaways for investors in the banking sector
The longer term outlook for Eurozone banks does look more positive than a year ago given reasons including the substantial deleveraging, capital raising by local banks and the European Central Bank (or ECB)’s recently announced ABS purchase program.
Wells Fargo remains number one in low-cost deposits
Wells Fargo continues to remain a sector leader in raising low-cost deposits. It grew its noninterest deposits by nearly 7.0% compared to 4Q14.
Why Wells Fargo’s future goals will help it grow more
Management sets the vision for an organization. Wells Fargo’s vision is large, but it’s already halfway there. Wells Fargo is the largest bank in the U.S.—by market capitalization.
How Does Wells Fargo Compare on Energy Exposure?
Wells Fargo (WFC) seems secure when it comes to risks arising from energy-related loans. Wells Fargo’s energy loan portfolio of $17.8 billion made up 1.7% of the total loan portfolio in 1Q16.
Evans suggests using macroprudential tools for financial stability
An example of macroprudential tools are bank stress tests, conducted regularly by the U.S. Federal Reserve.
Why low funding cost is an advantage for Wells Fargo
If a bank is able to keep its cost of deposits low, it will have a competitive advantage. Wells Fargo has the lowest cost of deposits among its peers—despite having a very high deposit base.
Citigroup’s Profitability Boosted by Lower Expenses
In terms of profitability, Citigroup’s return on equity (ROE) fell to 8.0% from 9.1% in the previous quarter but rose sharply from the 5.3% reported in 3Q14. Return on assets fell to 0.9% from 1.1% in 2Q15.
XLF Is above Its 20-Day Moving Average: Is This a Bullish Sign?
On February 19, the Financial Select Sector SPDR ETF (XLF) closed at $20.98. This is 10% and 6% below its 100-day and 50-day moving averages, respectively.
Understanding Goldman Sachs’s Segmental Earnings
Goldman Sachs ranked first in worldwide announced and completed mergers and acquisitions so far in 2015.
Why Treasury Yield Spreads Have Fallen to Over 8-Year Lows
Yield spreads between different maturity Treasury securities, when compared to historical trends, can indicate how the Market views economic conditions.
Walgreens Boots Alliance Issued the Most High-Grade Bonds
Walgreens Boots Alliance (WBA) issued Baa2/BBB rated high-grade bonds worth $6.0 billion through five parts on May 26.
Why Wells Fargo focuses on non-interest income
Wells Fargo wants to maintain a balance between its interest income from loans and non-interest income. Non-interest income accounts for nearly 49% of Wells Fargo’s revenues.
Why cross-selling is part of Wells Fargo’s strategy
Wells Fargo’s (WFC) first, and possibly the most important, operational strategy is focusing on cross-selling. It’s the most important pillar of its operational strategy.
Understanding Banks’ Market and Reputational Risks
All banks face risks. Two key areas to understand are banks’ market risk and reputational risk. Here’s a summary of each type.
Which Sectors to Avoid if Inflation Rises
Telecom services and utilities, the traditional dividend stars, have provided a fillip to US equities in 2016.
Understanding a Bank’s Operational and Business Risks
Banks experience operational risk in all daily bank activities, such as a check incorrectly cleared or a wrong order punched into a trading terminal.
US Stock Indexes Rally with Japan’s Stimulus and Robust Jobs Data
The three US stock indexes that we review in this weekly series rose from July 5–12, 2016. Robust US jobs data boosted investor sentiment and eased the fear of an economic slowdown.
Why Stanley Security Changed Gears
Profit margins in Stanley Security increased from 10.2% in 2013 to 11.4% in 2015.
How Is Wells Fargo Asia Pacific Fund Allocating Its Portfolio?
The Wells Fargo Asia Pacific Fund invests 80% of its assets in stocks of companies located in the Asia-Pacific Basin.
What Could Drive Citigroup Stock in 2019?
Citigroup (C) reported mixed fourth-quarter results on January 14. However, the stock is trending higher.
Why Wells Fargo is leveraging technology to cut costs
Online banking is the cheapest mode for servicing the customer in the long run. Online banking involves a one-time fixed cost. After that, the maintenance cost is very low.
Why Wells Fargo uses human resources as a strategic tool
Wells Fargo (WFC) believes that people are a competitive advantage source. Integrating sound human resource practices lies at the core of Wells Fargo’s strategy.
Why Goldman Sachs Says the FOMC’s March Policy Was Ultra-Dovish
Economists Zach Pandl and Daan Struyven from Goldman Sachs believe the March 2016 monetary policy statement released by the FOMC was one of the most dovish of this century.
Markets Give a Thumbs Up to ‘True Merger of Equals’
Today, Sun Trust Banks and BB&T announced a merger that would create the sixth largest bank in the United States.
Low-cost deposit growth is a key strength for U.S. Bank
U.S. Bank does well in increasing its low-cost deposit base. In 4Q14, money market deposits grew the fastest at 19.7%—compared to 4Q13.
Bank of America and Wells Fargo: Comparing Interest Rate Exposure
Since Donald Trump’s presidential victory, Wall Street analysts have raised their forecasts for the major banks’ (XLF) net interest margins as they anticipate rising interest rates and economic growth.
What’s Expected for Bank of America’s Global Banking in 2018
Global banking’s key drivers Commercial banks (XLF) will likely see subdued credit offtake in the United States due to interest rate hikes and tax rate cuts allowing for higher operating cash flow. However, economies are buoyant, and interest rates are still lower outside the United States. Banks with global exposure could target higher consumer and commercial loans. Bank […]
Which Bank Could Expand Its Loan Book the Fastest in 2018?
Wells Fargo is following strict underwriting guidelines in an effort to reduce its historical provisions. It’s expected to follow this strategy into 2018.
Manufacturing Expands in March: A Positive Sign for Banks?
The manufacturing PMI (purchasing managers’ index) for March released on April 1, 2015. It decreased to 51.5% from February’s reading of 52.9%.
Who Would Bid for American Express?
Wells Fargo seems unlikely to put capital on a falling brand like American Express, unless Warren Buffett has a different perspective and backs a takeover.
Why did Omega Advisors buy a share in Realogy Holdings?
Omega Advisors Inc. is a New York–based investment advisory firm founded in 1991 by Leon G. Cooperman. Omega bought a 1.04% position in real estate brokerage operator Realogy Holdings Corp. in 3Q 2013.
US Stock Indexes Almost Flat after Release of FOMC Minutes
The three US equity stock indexes we review in this weekly series were mostly flat from August 11–18, 2016. This came after the minutes from the July 26–27 FOMC meeting.
Why Citigroup Shareholder Payouts Are Now Rising
Citigroup (C) has consistently enhanced payouts for shareholders in recent quarters as its operating performance improves.
Wells Fargo’s Loan Growth Outpaces Bank of America and Peers
Wells Fargo (WFC) has the largest loan portfolio in the financial sector (XLF), anchored by its mortgage portfolio.
How Monetary Policy, Jackson Hole Could Impact Bank of America
Commercial bankers (XLF) in the United States have benefited from rising net interest margins due to rising rates over the past year and a half.
Analyzing ITHAX’s Sector Allocation Compared to Other Funds
ITHAX, MSIGX, and TINRX have the highest exposure to the information technology sector.
2-Year T-Notes Attract Higher Market Demand in March 2015
Primary dealer takedown was lower due to higher market demand. It was 36% of competitive accepted bids—down from 38.5% in February’s auction.
Could Wage Growth Improve as Employment Picks Up?
The US economy is swiftly adding jobs, with the latest addition of 227,000 jobs in January 2017.
Analyzing Wells Fargo’s Interest and Non-Interest Income
Commercial banks (XLF) have seen their interest income and margins rise over the past few quarters due to rate hikes.
What Wall Street Analysts Expect from Goldman Sachs’s Earnings
Goldman Sachs’s earnings per share (or EPS) is expected to be $5.12 for the quarter, higher than the $1.98 reported in 2Q15 and the $4.69 reported in 3Q14.
Why financials are likely to benefit from rising rates
Financials are likely to benefit from rising rates. I expect that rates are likely to moderately rise from here and continue to increase in coming years, as the U.S. economy strengthens.
Morgan Stanley: Can Dividend Hikes Woo Investors in 3Q16?
Morgan Stanley boosted its dividends by 33% to $0.20 after it received conditional approval from the Fed’s 2016 stress tests in June.
Wall Street’s Estimates for Bank of America’s 3Q16
Investors on Wall Street (SPY) eagerly await earnings releases from the financial sector, as it serves as a barometer for economic health.
What to Expect from Citigroup’s Expenses and Credit in 1Q16
Citigroup’s CFO expects core expenses in Citicorp to be flat in 1Q16 over 4Q15, and its repositioning reserve of $400 million will be higher than expected.
XLF Traded in Bear Country All Last Week
The largest financial ETF, XLF well represents the entire financial sector because it invests in banks, insurance, asset management companies, and REITs.
Why Wells Fargo’s Net Interest Income Could Rise in 2018
Commercial banks (XLF) have managed to improve their net interest margins (or NIMs) across the board and offerings in 2017, as the Fed has raised rates continually in order to reverse monetary easing.
Must-know: The banking landscape
There a large number of players that are each vying for share in the same market—there are a few large players who are present across the U.S., but most banks have pockets of strength.
Citigroup’s Analyst Ratings Reflect Upside Potential
So far in November 2017, 17 of the 29 analysts covering Citigroup (C) called for a “buy” or a “strong buy.”
Is Bank of America’s New Valuation a Fair One?
Bank of America (BAC) stock has risen 13.5% over the past six months and 58.7% over the past year—backed by expectations.
Mortgage Rates Fall as Bonds Rally, Impact Mortgage REITs
Mortgage rates largely ignored the moves in bond markets. In the week ended January 8, they fell by ten basis points while the ten-year bond yield fell to 2.1%.
How Citigroup Is Targeting Improved Efficiency in 2017
Controlling overhead expenses has been imperative for US commercial banks (XLF) like Citigroup (C).
Wells Fargo’s Earnings Likely to Underperform Peers in 2H17
Commercial banks (XLF) could see a marginal improvement in growth for 3Q17 mainly due to a rebound in trading activity due to reduced geopolitical tensions and improving fundamentals.
Fed Might Be Less of a Concern in 2019
As we enter 2019, the Fed’s tightening could be less of a risk compared to 2018. The Fed could go a bit slow and gradual with future rate hikes.