Wells Fargo Said to be ‘At Risk’ of Ending Profit Streak
Bloomberg reported that Wells Fargo is at risk of ending a 17-quarter streak of rising per-share profits as an industrywide revenue slump overcomes one-time gains and cost cuts that buttressed earnings.
Bloomberg said the company is struggling to replace about $1.4 billion in lost mortgage revenue as higher interest rates crimp new loans.
Bloomberg notes that CEO John Stumpf has sought to counter the drop by expanding investment banking and spurring retail brokerage sales. Those units are still too small to cover the shortfall, Bloomberg said.
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