Wells Fargo & Company WFC offered an upbeat update on its growth outlook at the Barclays 24th Annual Global Financial Services Conference held yesterday. Chief financial officer Mike Santomassimo highlighted resilient consumer activity, stronger-than-expected loan growth and continued momentum across several businesses as the bank takes advantage of greater operating flexibility following the removal of its asset cap.
Santomassimo said that the U.S. consumer remains healthy, with spending holding up well and no meaningful deterioration in delinquency trends. Household debt-to-income levels also remain favorable overall. Against this backdrop, Wells Fargo expects 2026 loan growth to exceed its previous mid-single-digit percentage forecast. Average loans rose roughly 12% year over year in the second quarter, driven by continued growth in credit cards, auto lending and commercial loans.
The revised outlook highlights the opportunities available to Wells Fargo following the Federal Reserve's decision to lift its asset-growth restriction in June 2025. The remaining provisions of the Fed's 2018 enforcement action were subsequently terminated in March 2026, giving the bank greater flexibility to expand its balance sheet and pursue organic growth across consumer banking, wealth management, commercial banking, and corporate and investment banking.
Corporate and investment banking remains a key growth area. Santomassimo said that Wells Fargo plans to continue investing in industry coverage, particularly in sectors such as healthcare and technology, media, and telecommunications. The bank expects third-quarter investment banking fees to rise at a mid-single-digit percentage rate, while markets and trading revenues are projected to increase at a similar pace.
At the same time, management maintained its 2026 net interest income outlook of $50 billion and an expense guidance of $55.7 billion. Santomassimo also indicated that the third-quarter net interest margin is performing better than previously anticipated. Combined with stronger loan growth, the improving margin outlook could support revenue generation despite continued pressure from funding costs.
Efficiency remains another important component of Wells Fargo's strategy. Santomassimo reiterated that the bank continues to identify opportunities to reduce expenses, with artificial intelligence potentially accelerating productivity improvements across its operations. Management maintained its full-year expense outlook despite higher performance-related compensation costs in the wealth business, reflecting cost efficiencies being pursued elsewhere across the organization.
The bank's growth strategy also supports its medium-term target of generating a 17-18% return on tangible common equity (ROTCE). Wells Fargo raised the target after surpassing its previous 15% goal, with management pointing to revenue growth, business simplification and approximately $15 billion in gross expense reductions achieved over the past several years.
Overall, Santomassimo's comments suggest that Wells Fargo is entering a broader growth phase after years of regulatory remediation and restructuring. Stronger loan demand, resilient consumer activity, expansion in fee-generating businesses and continued efficiency initiatives provide several potential avenues for revenue and earnings growth as the bank works toward its medium-term profitability targets.
Other Firms Signal Growth Momentum at Barclays Conference
At the Barclays 24th Annual Global Financial Services Conference, PNC Financial PNC outlined a strategy built on organic growth, local market expansion and heavy investment in technology. PNC Financial’s management said that the bank is benefiting from resilient consumers and strong commercial demand, even as it keeps a close watch on loan spreads, capital rules and selective credit risks. Management expects net interest income to rise more than 15% in 2026 and the net interest margin to finish above 3%.
At the same conference, Citigroup C CFO Gonzalo Luchetti said that the bank expects 2026 ROTCE to exceed 11%, up from the prior mentioned 10-11%. The improved outlook reflects stronger client-driven growth, structural efficiency gains and better capital productivity. Citigroup’s management expects 2026 NII, excluding Markets, to grow at the high end or slightly above its previous 5-6% target, driven by higher activity across deposits, lending, payments, investment banking and wealth management.
WFC Price Performance & Zacks Rank
Wells Fargo shares have gained 8.8% in the past year compared with the industry’s growth of 16.5%.
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WFC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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