Wells Fargo CFO sees stronger 2026 loan growth, healthy US economy

Wells Fargo CFO Mike Santomassimo said on Tuesday the bank expects loan growth in 2026 to be better than its previous forecast and signaled healthy spending and credit trends in the U.S. at an investor conference.

"Debt-to-income levels are quite good overall," Santomassimo said at the Barclays Global Financial Services Conference, adding that the economy is expanding and the bank is not seeing any deterioration in delinquency trends.

Shares of the U.S. banking giant were last up 3% in morning trading, as the comments allayed concerns that the Middle East conflict-driven jump in fuel prices and higher borrowing costs were squeezing consumers.

In July, Wells Fargo reported that average loans rose about 12% in the second quarter. The bank previously forecast 2026 loan growth in the mid-single-digit percentage range.

Santomassimo maintained the bank's full-year net interest income (NII) and expense forecasts. Wells Fargo expects NII, the difference between what a lender earns on loans and pays on deposits, of roughly $50 billion and expenses of about $55.7 billion.

Net interest margin for the third quarter is expected to be better than its initial expectation, he said.

"We're going to continue to invest in covering different subsectors within places like healthcare, TMT, and other parts," Santomassimo said.

Wells Fargo has invested heavily to build out its investment banking and trading businesses to aggressively take on Wall Street rivals.

The bank anticipates investment banking fees in the third quarter to rise by a mid-single-digit percentage, while markets revenue and trading are also expected to grow by mid-single digits.

On Monday, Bank of America CEO Brian Moynihan said the second-largest U.S. bank's investment banking fees could fall by at least 10% in the third quarter, while sales and trading revenue were expected to be roughly flat.