Update: Wells Fargo&Co.

The stable outlook reflects our expectation that WFC will progress in addressing outstanding regulatory issues over the next two years. We also expect that it will continue to demonstrate good financial performance while navigating risks to the economy. We think any potential asset-quality deterioration won't be substantial or depress earnings and capital. Lastly, we expect WFC will conservatively manage its balance sheet to meet emerging regulatory capital requirements and any deposit outflows associated with the Fed's quantitative tightening. We could lower the ratings if WFC does not progress in improving its governance and operational risk management deficiencies and can't meet the requirements to lift the asset cap and ultimately resolve its regulatory consent orders. We might also take negative rating

...Wells Fargo & Co. (WFC) has been focusing on improving its profitability and revenue sources. The company has been making strategic investments in less-capital-intensive fee generating businesses such as cards and investment banking, while deemphasizing or selling other units that deliver lower risk-adjusted returns such as mortgage banking. At the same time, despite an inflationary environment, its expenses have been declining with headcount reducing every quarter for four years and down 20% since third-quarter 2020. S&P Global Ratings expects WFC to deliver a return on common equity (ROE) of over 11% in 2024, down from last year due to lower net interest income, but in line with our...

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