Wells Fargo CEO Scharf Concerned About Loan Demand, Credit Quality Remains Strong Amid Asset Cap, Expands in Investment Banking

Wells Fargo CEO Charlie Scharf expressed concerns about loan demand not being strong but highlighted the U.S. consumer's overall strength. Scharf mentioned the bank's credit quality remains very good, yet growth in trading and corporate deposits is hindered by the asset cap. He also noted that the credit card business is not yet significantly contributing to profits, and the mortgage business is a drag on the company. Scharf mentioned feeling positive about reserve levels for office real estate. The asset cap is limiting Wells Fargo's ability to expand its trading business and take on more corporate deposits, areas where growth could occur if the cap is lifted. The bank is strategically expanding in investment banking. The CEO emphasized the need for better expense management at the bank.