Leading market positions in numerous U.S. banking businesses Long-standing, very strong deposit franchise, with a solid balance sheet Good track record of loan credit risk management Prolonged reputational and regulatory issues, including an asset cap imposed by the Federal Reserve that is affecting profitability Governance, compliance, and operational risk procedures that need improvement Economic shock from the pandemic that will likely result in elevated loan losses Our stable outlook reflects our expectations that over the next two years, Wells Fargo&Co. will make progress on resolving its regulatory consent order regarding its asset cap and that its preprovision profitability will gradually improve, although likely not to its historically strong levels. We also expect Wells' asset quality deterioration from the
