July 9 , 2014
Wells Fargo said to be ‘at risk’ of ending profit streak
U.S. -- Wells Fargo is at risk of ending a 17-quarter streak of rising per-share profits as an industry-wide revenue slump overcomes one-time gains and cost cuts that buttressed earnings, says a Bloomberg report.
The report says 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.