What Is Wells Fargo Competitive Position
III. Marketing and Competitive Position
Wells Fargo has started rebuilding trust with their customers by sending out email blasts with a marketing strategy geared to reinforce their commitment to ethics and integrity focusing everything the bank does on the customers they serve.
Finances
The purpose of the financial analysis is to evaluate the financial stability of an organization. The analysis can help identify areas for possible improvement, and areas of strengths that will enhance or compliment the strategic plan of the organization. Investors as well as regulatory commissions and government agencies utilize Financial Ratios to obtain a perspective on the performance of a company when compared to its competitors over a period of time. Basically, …show more content…
In other words the ROE is the measurement of the profitability that shows how much profit the bank generated utilizing the shareholder’s money. The current return on equity ratio for the 3Q 2017 for Wells Fargo is 9.06%, while Bank of America has 8.1%, and Chase has 11%. At this time Wells Fargo remains stable when compared to the major competitors. Although the ROE for Wells Fargo for the previous period ending in June 2017 was 11.6%, the reported increase could be the result of the undergone adjustments by Wells Fargo due to the recent scandals and the current investigation. It is too early to establish a strong comparison for this ratio. (Appendix …show more content…
However, due to higher operating losses as a result of the recent scandal and current investigations the total revenue of $21.9 billion is down 2% year-over-year (YoY) and down 1% over the last quarter, thus reflecting lower non-interest income. While the total average deposits of $14.4 billion are up 4%, the total average loan is down 1% or $5.1 billion. The (ROE) return of equity at 9.06% is down from 11.95% in the second quarter of 2017 (Appendix E). The efficiency ratio is up 4.4% from the second quarter of 2017. This is an indication that despite the capital levels remaining strong in the third quarter compared to the prior quarter, the efficiency ratio was in a negative trend as a direct result of the scandal discovered last September, 2016 and its continued developments. The purchase of $49.0 million shares of common stock has a direct effect on this capital position. However, the earnings per common share reflect a $.020 diluted earnings per common share for the third quarter when compared to the second quarter of
Wells Fargo has started rebuilding trust with their customers by sending out email blasts with a marketing strategy geared to reinforce their commitment to ethics and integrity focusing everything the bank does on the customers they serve.
Finances
The purpose of the financial analysis is to evaluate the financial stability of an organization. The analysis can help identify areas for possible improvement, and areas of strengths that will enhance or compliment the strategic plan of the organization. Investors as well as regulatory commissions and government agencies utilize Financial Ratios to obtain a perspective on the performance of a company when compared to its competitors over a period of time. Basically, …show more content…
In other words the ROE is the measurement of the profitability that shows how much profit the bank generated utilizing the shareholder’s money. The current return on equity ratio for the 3Q 2017 for Wells Fargo is 9.06%, while Bank of America has 8.1%, and Chase has 11%. At this time Wells Fargo remains stable when compared to the major competitors. Although the ROE for Wells Fargo for the previous period ending in June 2017 was 11.6%, the reported increase could be the result of the undergone adjustments by Wells Fargo due to the recent scandals and the current investigation. It is too early to establish a strong comparison for this ratio. (Appendix …show more content…
However, due to higher operating losses as a result of the recent scandal and current investigations the total revenue of $21.9 billion is down 2% year-over-year (YoY) and down 1% over the last quarter, thus reflecting lower non-interest income. While the total average deposits of $14.4 billion are up 4%, the total average loan is down 1% or $5.1 billion. The (ROE) return of equity at 9.06% is down from 11.95% in the second quarter of 2017 (Appendix E). The efficiency ratio is up 4.4% from the second quarter of 2017. This is an indication that despite the capital levels remaining strong in the third quarter compared to the prior quarter, the efficiency ratio was in a negative trend as a direct result of the scandal discovered last September, 2016 and its continued developments. The purchase of $49.0 million shares of common stock has a direct effect on this capital position. However, the earnings per common share reflect a $.020 diluted earnings per common share for the third quarter when compared to the second quarter of