Wells Fargo targets 17%-18% ROTCE over medium-term

The company said Wells Fargo (WFC) is a U.S. focused bank and benefits from the strength of the U.S. economy. Says over 95% of revenue is U.S.-based as of 2024. Says simplified business to better serve customers and improve earnings profile. Says made progress diversifying revenue mix and growing fee income streams. Says made significant progress on reducing expenses. Says made progress improving returns, with goal to achieve best in class returns for each segment over time. Says removal of asset cap provides additional opportunities for growth. Says managing CET1 ratio down to 10%-10.5%. The company said, “We believe we have additional opportunities to improve our returns and are targeting an ROTCE of 17 – 18% over the medium-term, driven by: Realizing returns on our investments and capitalizing on revenue growth opportunities across the company; Incremental efficiencies across all our businesses and functions; Completing the transformation and simplification of our Home Lending business; Improving profitability across our operating segments; Optimizing capital; Managing our CET1 ratio down to 10 – 10.5% after having been at or above 11% in each of the last nine quarters. ROTCE performance and capital levels will ultimately be determined by a variety factors including macroeconomic factors such as interest rates, as well as the evolving regulatory landscape.” Comments taken from Q3 earnings conference call presentation slides.