Wells Fargo CEO is optimistic about consumer prospects and says credit spending is growing steadily

The Zhitong Finance App learned that Wells Fargo CEO Charlie Scharf (Charlie Scharf) expressed a positive opinion on consumer prospects. He said, “Consumers are extremely flexible. We won't sit here and say that there are no risks, but the situation we are seeing looks similar and quite strong.” Schaff said consumer spending on debit and credit cards is growing at a “very moderate rate.” He added that deposit balances are still strong and credit quality “is still performing very well.” He also praised the Federal Reserve for managing the economy well under difficult circumstances.

Last week, Wells Fargo released its third-quarter earnings results, exceeding Wall Street expectations. After the report was released, the bank's stock price soared more than 4% last Friday. Despite a decline in its net interest income (a measure of bank loan revenue), the company achieved significant profit growth. Wells Fargo shares were up 1.40% by Tuesday's close.

Although Schaff said Wells Fargo does care about its quarterly results, the market is probably more obsessed with the report than management. He pointed out that although the trend was “not significantly different” and there were no major changes in strategy and progress in establishing the business, the stock price fell after the previous quarter but rose after the most recent quarter.

When asked what the upcoming presidential election results mean for businesses, Schaf also remained neutral. He said, “We will work with both parties,” and “I am encouraged that both candidates have talked about how they want to interact with businesses.”