San Francisco-based Wells Fargo & Co. (NYSE:WFC) will report fourth-quarter earnings Wednesday morning, in what investors see as the first full-scale test of the bank’s post-asset-cap strategy.
Start Of Real Growth Story
In June 2025, the Federal Reserve removed the asset-cap provision that had been in place on the bank since 2018, owing to a string of scandals tied to improper customer practices.
The cap had effectively frozen Wells Fargo’s balance sheet at $1.95 trillion, and following its removal, the company can finally resume growth by growing its deposits and expanding its loan books, which were frozen in place over the past couple of years.
While this is the second quarter since the company rid itself of heightened regulatory constraints, it marks the first real test for the company, as investors wait to see if the company fulfils its post-cap objectives.
During its third-quarter results three months ago, management had guided aggressive growth in its return on tangible common equity, …