Michael Santomassimo

With Changes To Home Lending Business, Wells Fargo Expects Profitability To Improve

Posted on by TMN Editor
By KIMBERLEY HAAS Wells Fargo released its fourth quarter 2023 financial results on Jan. 12 and leaders there say as they continue to streamline their home lending business profitability will improve. The company reported a net income of $3.4 billion, or $0.86 per diluted share. CEO Charlie Scharf said in his comments that the continued execution of their more focused home lending strategy should produce higher returns and earnings over the next several years. “As we look forward, our business performance remains sensitive to interest rates and the health of the U.S. economy, but we are confident that the actions we are taking will drive stronger returns over the cycle,” he said. Scharf said their new credit card products have…

Wells Fargo Bouncing Back

Posted on by TMN Editor
By SCOTT KIMBLER There are signs that Wells Fargo is recovering and will continue to be a key player in the banking industry. Formerly the nation’s largest mortgage lender, leaders there announced in January strategic plans to create a more focused home lending business aimed at serving bank customers and minority communities. Those plans included exiting the correspondent business and reducing the size of the company’s servicing portfolio. That news came just days before the company released their Q4 2022 results. Net earnings had fallen to $2.86 billion, or 67 cents a share. Leaders at Wells Fargo noted that the decline was driven by the fall-off in mortgage demand as home lending was down 57% from Q4 2021. Now, Wells…