Wells Fargo Earnings May Outpace Domestic Rivals In H213
News: US financial services company Wells Fargo may outpace its domestic rivals in the second half of 2013 as it continues to increase its market share, CNBC reports. The bank appears to be closing the gap with its leading competitors in terms of earnings growth, including JPMorgan Chase , Bank of America and Citigroup . JPMorgan Chase only narrowly beat Wells Fargo in profitability for 2012 by generating a net income of more than US$21bn.
BMI View: We believe that the end to US household deleveraging over the next few quarters will mean continued sustainable growth in the US banking sector, and are forecasting both asset and client loan growth to accelerate in 2013 and 2014. The US nonfinancial corporate sector has long since concluded its deleveraging process, and we believe that an improving housing sector and greater consumer borrowing demand will lead to faster loan growth.