Everyone is talking about Wells Fargo, yet it's still readily available for purchase

Wells Fargo & Company has been one of the top gainers in the Banking industry, with shares up more than 80% in the last year.
CENTRAL, Hong Kong - March 4, 2022 - PRLog -- The move was so large that it may be alarming to some. The stock appears to be primed for a wave of profit taking, this might very well be the case.

Of all the stocks in the Banking sector, this one appeared to have the least chance of putting up such a strong performance over this time period. Of course, Wells Fargo is the bank that was caught by the Consumer Financial Protection Bureau in 2016 for establishing millions of fraudulent Accounts. Even though it happened six years ago, with more than $3 billion in fines handed out and one chief executive officer having to leave, it's the kind of controversy that may linger for years to come. In the aftermath of the bogus Account disaster, when polled people indicated they trusted Wells Fargo far less than any other large Bank.

People appear to have forgiven and forgotten more rapidly than one might anticipate. The Bank had 6.5% more client deposits at the end of 2021 than it did a year earlier and credit card income was up 3% year over year. Overall, the company's fourth quarter net income increased both sequentially and year over year. So much for the age old mentality of "I'll never bank there again."

Don't be shocked if those numbers increase in the future. While the combination of rising home prices and interest rates is expected to significantly reduce demand for mortgages this year, the Mortgage Bankers Association predicts that loan originations will drop from nearly $4 trillion in 2021 to $2.6 trillion in 2022, home loans aren't Wells Fargo's only source of revenue. Higher interest rates boost the profitability of its checking and savings Accounts, as well as its credit card operations.

To that end, while analysts still predict Wells Fargo's revenue and earnings to decrease in 2022 following last year's increases, both the top and bottom lines are likely to begin climbing again through 2025.

For more latest news in US stock market you may also visit us at Prime Bright Investment Limited through our website https://primebrightinvest.com or contact us via email.

Susan Chua
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