Summary
- The numbers were messy, as usual, but Wells Fargo posted good fourth-quarter results, headlined with strong spread income growth.
- Wells Fargo is well-placed to significantly outperform its peers in terms of pre-provision profit growth in 2023, as well as in returning capital to shareholders.
- Recent comments from the CFPB suggest that more sanctions may be coming, as regulators seem to think that the bank is prioritizing growth over resolving long-standing compliance issues.
- I like Wells Fargo's above-average growth outlook, but I think there are better risk-reward opportunities elsewhere in the banking space.
For further details see:
Wells Fargo: More Capital And Growth Potential Than Peers, But Also More Risk