Wells Fargo said it has raised its forecast for loan growth in 2026 and is seeing robust consumer spending and credit behaviour in the United States, the bank's chief financial officer reported at an investor presentation on Tuesday.
Speaking at the Barclays Global Financial Services Conference, CFO Mike Santomassimo characterized household balance sheets as broadly healthy and said the bank is not observing any deterioration in delinquency trends. "Debt-to-income levels are quite good overall," he said, summing up the firm-level view of consumer credit metrics.
The bank's shares rose about 3% in morning trading after the remarks, an uptick market watchers linked to the stronger loan-growth outlook and the reassurance on consumer resilience. Management’s comments appeared to ease some investor concern that higher fuel prices tied to the Middle East conflict and rising borrowing costs would put significant near-term pressure on consumers.
Wells Fargo had previously guided to loan growth in the mid-single-digit percentage range for 2026. The bank also reported in July that average loans rose roughly 12% in the second quarter, an earlier disclosure that aligns with the updated outlook.
On the revenue and cost front, Santomassimo left the bank's full-year projections for net interest income and operating expenses intact. Wells Fargo continues to expect net interest income of about $50 billion for the year and total expenses near $55.7 billion. The company reiterated that net interest income represents the gap between what a lender earns on loans and what it pays on deposits.
Looking ahead to the third quarter specifically, the CFO said management anticipates the bank's net interest margin will come in above its initial expectation for the period.
Context and implications
- The updated loan-growth forecast signals management confidence in continued credit demand and consumer spending patterns.
- Maintaining full-year NII and expense guidance suggests the bank expects its core earnings drivers and cost base to remain on plan for now.
- Comments on margin and delinquency trends provide additional detail about the bank's near-term operating outlook.