Some banks are still having difficulty boosting their profits. John Stumpf sympathizes with them. Sure, his bank continues to rake in increasing amounts of dough every quarter, but it’s not like all is rosy on the wagon train.
During the quarter, Wells Fargo saw expenses move higher even as it has repeatedly worked to lower those costs…..
The San Francisco bank’s net interest margin—a key profitability figure that measures the difference between what a bank makes on lending and what it pays depositors—narrowed to 3.04%, compared with 3.27% a year earlier and 3.06% in the prior quarter. Wells Fargo has seen the margin squeezed for several quarters, as deposit growth outstrips its loan growth.