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Wells Fargo Is Focusing on Improvements in These Two Areas

Andrew Brunton
Wells Fargo Is Focusing on Improvements in These Two Areas

In the last two quarters, Wells Fargo & Company (WFC) has seen a decline in its loanbook while its peers have managed growth of 2%–7%. The decrease in the company’s lending has mainly been the result of strict underwriting guidelines, prepayments, and a decline in automobile and mortgage-backed loans. With its strong balance sheet, Wells Fargo is positioned well to target higher retail and commercial lending in future quarters. Although the Fed has granted it clearance to raise its shareholder payout, it has yet to make strategic moves to grow its credit.