What John Stumpf Thinks About Housing

John Stumpf, the CEO of Wells Fargo & Co (NYSE:WFC), loved the way the bank performed in 2Q despite failing to extend 17 quarters of uninterrupted earnings growth. The company reported revenue ahead of the consensus estimates while earnings met expectations.

Largest Financial Services Companies

As such, the bank earned $1.01 per share in line with the expectations and generated $21.29 billion in revenue against the consensus estimate of $20.83 for the quarter.

Stumpf revisited the second quarter performance on CNBC and even shared his thoughts about loan demand, which was a key factor for the positive 2Q results. He also looked into the housing segment where the company is regarded as the largest player in terms of mortgage business.

Starting off the discussion, Stumpf said 2Q was good and they are proud of their performance track record of 17 uninterrupted quarters of rising earnings.

“We had a terrific quarter and sometimes, the numbers are what they are and we thought they were pretty spectacular,” he remarked.

He went on to say that the economy is witnessing impressive improvement that makes Wells Fargo -which is one of the biggest banks in the World- optimistic about the future. Stumpf restated the loan growth figures realized in 2Q of which he said growth in loans of 8 or 9 percent, growth in deposit of 9 and increase in fee income succeeded in revealing how the economy is strengthening.

Concerning housing, Stumpf expressed his optimism in the segment but didn’t fail to register his displeasure with mortgage performance in Wells Fargo & Co (NYSE:WFC)’s 2Q.

“I think mortgage is a little bit disappointing in this regard. We didn’t have as much volume as we had hoped going into the second quarter. Still a quarter that was good, $10 billion more than the first quarter, but there is lots of different things going on in housing that I think are holding us back a bit.” Stumpf added.

According to Stumpf, some of the reasons Wells Fargo & Co (NYSE:WFC) didn’t register strong performance in the mortgage segment was that some people felt credit was not available, inventory was lacking in other cases and in other instances, borrower’s inability to qualify because of such matters as student debt impact mortgage.

However, despite the challenges, he said they at Wells Fargo & Co (NYSE:WFC) are bullish on housing.


Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!