Jim Cramer Says Wells Fargo Earnings Indicated “Credit Quality Was Very Strong”

Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer recently highlighted. Discussing the stock during the episode, Cramer said:

“Now, we got earnings from the big financials last week, and I was quite heartened by what they had to say. Wells Fargo put up extraordinary numbers, indicating credit quality was very strong.”

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Wells Fargo & Company (NYSE:WFC) provides banking, investment, mortgage, and lending services. In addition, it offers wealth management, treasury, and capital markets solutions. Cramer mentioned the company during the October 14 episode and said:

“But do you know Charlie Scharf? Well, you should. He runs Wells Fargo. In fact, he saved Wells Fargo after one of the worst non-existential scandals in banking’s history. Charlie’s all about reliable positive earnings. He’s about delivering, but he hasn’t been able to deliver because seven long years ago, the Federal Reserve slapped an asset cap on Wells Fargo. It was devastating, and Charlie had to redo everything about this bank, top to bottom.

The Fed’s now lifted the cap, and lo behold, Charlie’s turned Wells Fargo into a hub of commerce, including corporate finance with a huge amount of stored-up capital. Today, he told an amazing story about a bank with tremendous earnings power. Wells can buy back stock, he can grow the institution, and it stands as a perfect metaphor for the real economy. And that’s why that stock led the entire S&P 500. It’s been a long time since I’ve seen a bank stock lead the S&P 500 with a 7% gain. That’s right. A bank stock had the biggest advance, making me look like a genius for once because we own Wells Fargo for the Charitable Trust.”

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Disclosure: None. This article is originally published at Insider Monkey.