Wells Fargo (NYSE:WFC) CEO John Stumpf was on CNBC to share his views on the economy, markets, housing and banking industry. He also provides his view on where and how Wells will be growing when the net interest margins are so low.
-- Housing has turned the corner.
-- When housing does well everything else should do well.
-- Recovery is still not as strong as it is supposed to be due to lot of uncertainty around.
-- Corporate balance sheets are best in years and Wells is flushed with cash as well.
-- There is great capacity to spend, hire and invest, but it is not happening due to all the uncertainty.
-- Yes, net interest income margins are very low and very difficult to make money for banks but Wells has still been able to grow revenue both quarter over quarter and year over year due to non-income margin business like mortgages.
-- He thinks Wells is not a one-trick pony. Wells in 80 more related businesses.
-- This is a broad financial services company.
-- Growth will come from mortgages. Wells' brokerage retirement is a huge opportunity; insurance distribution business is also a good opportunity.
Credit and source: www.cnbc.com, CNBC
Here is the video:
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