Wells Fargo CFO lays out growth opportunities from asset cap lift

Wells Fargo (NYSE:WFC) Chief Financial Officer Mike Santomassimo discussed Tuesday what opportunities the asset cap removal opens up for the bank over the medium to longer term.

Last week, the Federal Reserve said that Wells Fargo (NYSE:WFC) is no longer subject to the asset growth restriction the regulator imposed on the bank in 2018, saying the bank has met all conditions required by the consent order.

Its markets business has been most constrained because of the asset cap. Now, the lift offers more flexibility, the CFO said in a fireside chat at a Morgan Stanley conference.

Across each of its businesses, though, the lender has been “investing in technology and people to build out the right capabilities” over a long period of time, he said.

He noted that Wells Fargo (WFC) is investing in its physical branches and auto business, and it’s continuing to refine its consumer lending business.

He emphasized that just because the asset cap has been removed doesn’t mean growth is imminent. “It does take some time to grow — it doesn’t happen in a week,” he said.

Elsewhere, there will be more opportunities to make the bank’s risk and control work more efficient and streamlined “over a longer period of time.”

WFC shares slipped 0.4% in Tuesday morning trading.

This is a developing story. Check back for updates.