Wells Fargo's Santomassimo says loan growth is performing well and will be a little bit better than what was modeled

Wells Fargo CFO Michael Santomassimo recently indicated that the bank is observing stronger-than-expected performance in its loan growth, particularly in the investment banking and commercial sectors. During a media briefing, Santomassimo noted that the bank is seeing “a little bit of share growth” and “green shoots in terms of deals” that were previously out of reach due to regulatory constraints. The bank’s recent removal of a seven-year asset cap has enabled it to pursue more aggressive growth strategies, including expanding its corporate and investment banking operations.

Despite a cautious outlook for consumer loan growth—Santomassimo stated that consumer loan growth remain flat or potentially decline through the end of the year—the bank is optimistic about its commercial and investment banking segments. Santomassimo highlighted that investment banking fees rose 9% year-over-year to $696 million in the second quarter, driven by higher advisory fees. The bank is also allocating more capital to its markets business, which includes low or no interest income, as part of its broader strategy to diversify revenue streams.

While the bank’s net interest income guidance for 2025 was cut, reflecting a shift in capital allocation, Santomassimo emphasized that the bank remains focused on long-term growth and profitability. The firm is navigating a challenging macroeconomic environment, including uncertainty around proposed tariff increases, but has not seen impact on credit quality or borrower repayment capacity.