Wells Fargo Might Be One of the Few Big Banks to Grow Earnings in 2022
Following the market's reaction after three of the largest banks in the U.S. reported earnings on Jan. 14, it was clear that Wells Fargo (NYSE: WFC) won the day with investors boosting the stock nicely, as Citigroup fell and JPMorgan Chase dropped more than 6%. Wells Fargo not only beat estimates soundly but also gave guidance that suggested the bank will likely increase earnings in 2022, a feat that may not be so easy for its competitors.
Since CEO Charlie Scharf came aboard in 2019, one of his main priorities (beyond addressing the bank's extensive regulatory issues) has been to reduce annual expenses and cut the bank's efficiency ratio. That metric measures expenses as a percentage of total revenue, so lower is better. Management set a goal early last year of cutting $8 billion of gross expenses over a three- to four-year period.
Image source: Wells Fargo.
Source Fool.com
