Wells Fargo $WFC is scheduled to report third quarter earnings before the bell on Friday with Bank of America $BAC and PNC Financial $PNC. Analysts will be watching commentary on the bank’s seemingly endless scandals and their future rebrand.
Wells Fargo $WFC is scheduled to report third quarter earnings before the bell on Friday with Bank of America $BAC and PNC Financial $PNC. Analysts will be watching commentary on the bank’s seemingly endless scandals and their future rebrand.Bank of America $BAC, $WFC follows other money center major banks Citigroup $C and JPMorgan $JPM who report Thursday morning. Analysts expect more of the same with the fake bank account scandal still overhanging and also softer trading profits and interest spread gains. In light of the bank’s issues loan growth will be informative.
Wells Fargo Account Scandal brought a new meaning to Convenience cash, when will their brand recover?
In the scandal that keeps giving CEO Tim Sloan appeared Tuesday before a Senate panel clearly agitated with his bank and answers.
Bank stocks jumped recently after the GOP’s tax-reform plan was announced. We expect more of the same with trading mellow, interest rates low and business cautious. The banking sector received a boost earlier in the year after the largest U.S. banks passed Fed stress tests and were allowed to raise dividends and share buybacks. The Fed as it raise rates is helping banks’ finances.
Wells Fargo Consensus Forecast
Expected EPS of $1.03 as revenue continues to suffer, it is expected to have fallen 0.1% to $22.3 billion.
Since Donald Trump won on Election Day has been a huge run higher on BAC and the other bank stocks. Caution hangs over the sector if congress can pass regulatory rollbacks after the GOP’s unsuccessful attempt to replace the Affordable Care Act. Auto and student loans also overhang the banking and finance sectors.
Monthly Chart of Wells Fargo shows the recent stalling from scandals as other banks took off.
The bank rally had been fueled by expectations for easier regulations including a possible repeal of DoddFrank and infrastructure spending. The Federal Reserve decision to raise rates has also helped banks. The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto.
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