On July 21, 2010, Wells Fargo stock will have its quarterly earnings report. This review of the first half of 2010 will come on the heels of a flat 2010 for Wells Fargo. The stock remains up nearly 20% over the last year, but that was more of a post-crash bounce and 2010 has been much more neutral. Analysts are looking for around $0.50 per share earnings for the quarter with revenues over $21 billion. It’s hard to imagine WFC not hitting those numbers, but its also hard to imagine they will do anything to get investors really excited. Many believe the weak fundamentals and system remain, but those problems are obfuscated by the free money being given away at the Fed which makes profits very difficult not to achieve.
Despite new financial regulation on fees, like on overdrafts, banks are coming up with new ways to recoup that revenue. Wells Fargo stock investors should begin recovering these fees to increase revenue as well. One of the immediate decisions Wells Fargo will be enacting is eliminating its free checking program. This is one of many ways that the bank hopes to recoup the over $1 billion in lost fees from government regulations. Other fees may be coming down the pipe for consumers, but the bank will have to walk a careful balance and only follow practices similar to its peers so as to not alienate customers.
Wachovia bank is a name known by many. It’s one of the United States better known bank brands. That name, however, will slowly disappear from banks and sports arenas. Wells Fargo stock purchased the large bank during the financial crisis of 2008-2009. Much of the less cosmetic changes have already occurred at Wachovia banks. Most significantly, the high customer service, personal branch feel transition is already occurring. Much of this has meant the hiring or more people to assist customers in branches. The name change, however, has not. That will begin to change in many places this year. While California has already transitioned, Texas and Kansas will next month. Those areas will be followed by conversations in Alabama, Mississippi, Tennessee, Georgia.