Wells Fargo at Bernstein Conference Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$WFC at Bernstein Conference Notes

“I am more optimistic today than I have been in some time.”

“housing is clearly on the upside of the curve.”

“housing plays a bigger role in the economy than just the economics around it. It has such a big influence on people’s attitudes.”

“overall, people are more optimistic and that is good. When that happens, it’s a better environment for us.”

“We don’t manage the Company to the margin. We manage it around providing services and products that our customers need and help them succeed financially.”

“one of the biggest risks today in our industry is not credit risk, it is interest rate risk”

“we have some expenses related to the downturn that we think will go away or become less, so that’s kind of a tailwind side.”

“one of the most undervalued parts of our franchise today is our deposit franchise. We put an enormous amount of effort into that and not only deposits, the kind of deposits you have. The fact that we have 15 basis points as cost is not – is less to do about our pricing in deposits and more about the mix.”

“We have found that deposits that come with a primary checking account that relationship is 2.4 times more profitable than one that does not.”

“[to get loan growth] it’s going to take is for consumers to start to buy housing again”

“companies have gotten a lot more efficient the last five years. There’s still capacity left in plant and equipment. I think technology has changed some of that.”

“We love the mortgage business. For two-thirds of Americans, it is still the biggest asset purchase they’ll ever do. It is part of how the way Americans save and it changes families.”

“I want sufficient capital, but not – or even – I don’t even care if it’s 5% or 10%, whatever, I mean, we can argue about what the exact number ought to be, but I don’t want to go over the top in this. There’s also a cost of having too much capital.”

“Our DNA is much more of a regional bank.”

“Incidentally, we don’t set out to be number one in anything. If we get there because we’re doing a good job, great, but I don’t have league tables on anything that – because the size has never been the arbiter for us.”

“I’ve worked for three Wells Fargos. The one was called Norwest. The second one was called Wells Fargo. It was 15 years ago. And now, this new company is four and a half old. It’s by far the best company I have worked for”

“When you’re in the auto lending business, you are a little bit in the used car futures business”