Wells Fargo may close, move branches to trim costs
Wells Fargo may close, move branches to trim costs
Wells Fargo & Co., Greater Des Moines’ biggest private employer, may close or consolidate branches as it examines ways to trim costs, according to its chief financial officer, Bloomberg reported.
Wells Fargo, whose market value of about $160 billion makes it the largest U.S. lender, could shut branches near each other or move some wealth-management or mortgage employees into those offices, Timothy Sloan said today at a New York investor conference.
“There are obviously some regulatory issues that you need to be mindful of when you combine a securities business and a deposit-taking business,” Sloan told analysts who follow the San Francisco-based company. “But from time to time, we are clearly going to look at opportunities to consolidate.”
Banks including Wells Fargo have fallen short in efforts to replace revenue lost to new financial rules such as those capping debit card interchange fees. Wells Fargo CEO John Stumpf has announced plans to trim $1.5 billion in quarterly costs by the end of this year. Sloan affirmed the goal while saying first-quarter expenses will remain elevated.
Wells Fargo has completed converting the former Wachovia Corp. network to its own brand, Sloan said, giving the bank 6,239 retail branches, 1,375 retail brokerage offices and 725 mortgage locations at the end of 2011, according to today’s presentation. That outpaces Bank of America Corp. for the largest U.S. network of outlets.
According to the 2012 Book of Lists, Wells Fargo is Greater Des Moines’ largest non-government employer, with approximately 12,900 local full-time employees.
Wells Fargo & Co., Greater Des Moines’ biggest private employer, may close or consolidate branches as it examines ways to trim costs, according to its chief financial officer, Bloomberg reported.
Wells Fargo, whose market value of about $160 billion makes it the largest U.S. lender, could shut branches near each other or move some wealth-management or mortgage employees into those offices, Timothy Sloan said today at a New York investor conference.
“There are obviously some regulatory issues that you need to be mindful of when you combine a securities business and a deposit-taking business,” Sloan told analysts who follow the San Francisco-based company. “But from time to time, we are clearly going to look at opportunities to consolidate.”
Banks including Wells Fargo have fallen short in efforts to replace revenue lost to new financial rules such as those capping debit card interchange fees. Wells Fargo CEO John Stumpf has announced plans to trim $1.5 billion in quarterly costs by the end of this year. Sloan affirmed the goal while saying first-quarter expenses will remain elevated.
Wells Fargo has completed converting the former Wachovia Corp. network to its own brand, Sloan said, giving the bank 6,239 retail branches, 1,375 retail brokerage offices and 725 mortgage locations at the end of 2011, according to today’s presentation. That outpaces Bank of America Corp. for the largest U.S. network of outlets.
According to the 2012 Book of Lists, Wells Fargo is Greater Des Moines’ largest non-government employer, with approximately 12,900 local full-time employees.
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