Wells Fargo CFO says there will be pressure as economy slows

by Saeed Azhar and Mehnaz Yasmin NEW YORK (Reuters) – Wells Fargo’s chief financial officer said on Tuesday that after strong growth so far this year, Wells Fargo’s Lending growth at banks is slowing, and mortgage income is facing downward pressure as consumers feel the impact of higher interest rates. “As the economy slows, the pressure will increase. So for some of these portfolios, This will come. So far, it’s weathering pretty well,” Mike Santomasimo said in 2023282 Barclays (London:

BARC) Investor Conference. His comments came after Bank of America’s chief financial officer said at the same meeting Monday that he expected % to10 Mortgage income in the third quarter fell % from the second quarter as the housing market slowed.

Hopes of a soft landing to avert a recession are fading as the Fed remains firm in its decision to keep raising rates ahead of data, showing consumer prices fall back. Despite high inflation and fears of a looming recession, U.S. consumers and businesses remain financially healthy, with some of the nation’s top bankers on Zhou said at a conference in New York. “The Fed has tightened a bit more than we expected,” PNC Financial Services Group (NYSE: 100 PNC

) Chief Financial Officer Robert Reilly.

The bank sees a

% Chance of Recession , but even if it happens, it’s just “Shallow,” Reilly added. Santomassimo warns that the macroeconomic environment is affecting lower-income segments of the population, even though this segment makes up a smaller share of banking .

“It’s not going to be a significant driver. But you start to see that, considering what we’ve seen Inflation, that’s what you should expect to see,” he said.

San Tomasimo said the bank’s net interest income was strong due to higher interest rates.

“We still feel really very comfortable % year-over-year growth,” he said.

While the bank is growing at 5% so far this year, this growth has been put on hold since the second quarter, Santo Massimo said. slow.