Update: Wells Fargo&Co.

We expect NII to trough in the second half of 2024, even if interest rates remain relatively high. Wells' quarterly NII has declined since peaking at $13.4 billion in fourth-quarter 2022, curbed by the continued migration of deposits to interest-bearing accounts and other higher-yielding alternatives, as well as declining loan balances. (Management expects NII to decline 7%-9% from 2023 levels for the full year.) The bank's performance also improved in the most recent Federal Reserve stress test, which lowered its minimum common equity Tier 1 requirement to 8.9% as of fourth-quarter 2023, from 9.2%. The bank's allowance for credit losses increased to 1.61% at the end of the first quarter from 1.45% in the prior-year quarter, also primarily because of

...We expect Wells Fargo & Co. to remain profitable, with a 10%-12% return on average common equity in 2024. High interest rates will continue to pressure net interest income (NII) in 2024, though a rebound in noninterest income and conservative expense management could improve pretax, preprevision revenue. We expect NII to trough in the second half of 2024, even if interest rates remain relatively high. Wells' quarterly NII has declined since peaking at $13.4 billion in fourth-quarter 2022, curbed by the continued migration of deposits to interest-bearing accounts and other higher-yielding alternatives, as well as declining loan balances. (Management expects NII to decline 7%-9% from 2023 levels for the full year.)...

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