Wells Fargo earnings draw mixed reaction on Wall Street as one analyst seeks clear vision of where it is going’ - San Francisco Business Times

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In banking news, WellsFargo investors had plenty to digest following the latest quarterly earnings report. Analyst concerns centered on the outlook for the bank's core earnings power and outlook

Wells Fargo had a lot to say on Friday’sbut a few analysts downgraded the shares on their concerns about the bank’s outlook. At least one analyst wants to hear more about the CEO’s vision for the bank.agreed to a $3.7 billion settlement last month

“Possibly, putting out fires is so important that this vision has been deferred. But at some point, management must clarify the direction it is taking,” Bove said. Many wonder when the asset cap will be lifted, given the role it plays in limiting growth as the bank operates under the cap. “The big emerging pressure point is net interest income degradation,” Siefers told clients. “It seems likely the fourth quarter represented a high-water mark here, and a tougher outlook, especially thanks to deposit mix/migration, weighs on our expectations — the starting point for 2024 could be especially tough.”

 

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