Market and
partners news

Wells Fargo: difficulties are surmountable

Wells Fargo: difficulties are surmountable

20 January 2023

The American bank Wells Fargo, which occupies one of the leading positions in the US banking sector, has published its results in the fourth quarter of 2022.

Probably, we will have to mention every time that the data could have been worse, because the period turned out to be problematic. However, it is worth admitting that Wells Fargo has done well:

  • revenue -7.5% YoY to $19.7 billion;
  • return on equity 6.4%;
  • net profit -50.2% YoY to $2.9 billion;
  • net interest income +45% to $13.4 billion
  • non-interest income -46.3% to $6.2 billion.

The mortgage lending sector was expected to be weak: business revenues from this side fell by 57.4% and amounted to $786 million. At the same time, the areas of corporate and consumer lending have revived, which have leveled this negative.

It is noteworthy that Wells Fargo has a good segment of commercial banking (+37.9%).

The volume of assets under management decreased by 14.8% to $1.86 trillion. But this is also expected and not surprising.

The bank has a sufficient amount of reserves in case of complications of the conjuncture, the parameters of the volume of assets and the loan portfolio do not scare.

The consensus forecast for Wells Fargo shares in the 6-month perspective is $48.

The MACD indicator on the daily trading chart of Wells Fargo shares is growing in the negative zone and signals a purchase. The Stochastic oscillator rises in the overbought area and confirms the buy signal.

20 January 2023
Why Russians should invest in Bahrain

Most of the Russians have heard about Dubai, but very few are aware of Bahrai...

Macro overview of the current week

The USA has reached the limits of the national debt The official limit of the...

Macro overview of the current week

The legacy of the pandemic: remote working, isolation and skepticism 2023 wil...