Is this the new normal for banking? A big 4 bank actually had a huge upside earning … on declining lending??
Yes, Wells Fargo had a 41.44% earnings surprise on July 14, 2021.
Wells Fargo Earnings Per Share (EPS) plunged during the March 2020 Covid outbreak, but has been recovering … in terms of EPS and share price.
Wells Fargo is seeing booming deposits (green) at virtually zero deposit rates while loans have fallen (green). The recent widening between deposit and loans is in the pink box while the general widening has taken place since Q4 2010.
Total loans to total assets (white) has been falling since The Financial Crisis and housing bubble burst.
Wells Fargo’s total risk based capital ratio dramatically increased after the financial crisis, as it did for all banks.
O-ho the Wells Fargo Wagon is a-comin’ down the street, but to collect deposits and make fewer loans.