2024-01-26 00:27:04 ET
Summary
- Wells Fargo's earnings are expected to decrease due to changing interest rates and ongoing fundamental issues.
- The bank's net interest income has already peaked and is likely to continue declining as deposit costs increase.
- Cost-cutting measures have not been effective in improving profitability, and credit quality is deteriorating, leading to higher provisions for loan losses.
Wells Fargo ( WFC ) has benefited from higher rates in the recent past, but this is expected to change leading to lower earnings ahead. While its valuation can be considered fair, I don’t see any catalyst for a higher share price in the short to medium term....
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Wells Fargo: Not Much To Be Excited About