I’m interested in someone that understands the fundamentals of our business, not Charlie su-ks.
Why does the bank keep missing targets? How does non interest income fall $1b year over year?
It seems we are incurring higher expenses for CIB but continue to fail to reap commiserate revenue and income benefits.
Charlie thinks he can swing a big one like the leaders. He can’t. Ever. That wobble is the wheels are now coming off.
WF is run by fake political hacks that take the same approach as Washington. Constantly chasing short-term fixes and shiny objects with no long-term plan. It always catches up eventually, but they know they will already be cashed in by then with zero accountability. Wash-rinse-repeat
Schart has eliminated 1/3 of US-based positions over the past 7 years but the costs of employees hasn't meaningfully gone down b/c he tried to replace them with high-cost CIB/CB/WM "rain-makers". They haven't done sh-t and the Street has known it; with the revenue miss this Quarter, everyone now knows it.
Competitors like JPMorgan & Chase make their massive CIB profits by capturing the highly lucrative advisory, M&A, and underwriting fees surrounding a corporate relationship. WF is successfully giving out loans, but it is still unable to capture its full share of those high-margin fee services. So they are spending 26% more on CIB loans but only getting 16% more in revenue from them.
They will tell you they are deliberately absorbing lower short-term profitability and higher infrastructure expenses today to position the bank to challenge elite firms for fee dominance tomorrow. However, Charlie su-ks
For non interest expenses: Mostly its WIM increasing non interest expenses. WIM has a horrid efficiency ratio. Overall headcount is down 8% but expenses barely budged. This is mostly due to sales bonuses and commissions in WIM ("revenue related expenses" in the deck) offsetting the headcount reductions.
For non interest income drop: looks like there was a one-time gain on our venture capital in 2026-1Q. What we are seeing this quarter is more normal.
Charlie su-ks.