Wells Fargo CFO Boosts 2026 Loan Growth Outlook, Citing Consumer Strength

Wells Fargo & Co. expects loan growth in 2026 to exceed its previous forecast, a sign of confidence in the health of the U.S. economy and consumer finances, Chief Financial Officer Mike Santomassimo said Tuesday. The optimistic comments, which sent the bank's shares up 3% in morning trading, helped ease investor concerns that higher borrowing costs were straining households.

Updated Financial Guidance

Speaking at the Barclays Global Financial Services Conference, Santomassimo updated the bank's outlook, signaling a more robust lending environment than previously anticipated. In July, Wells Fargo had forecast loan growth for 2026 in the mid-single-digit percentage range.

Key financial targets for the full year remain unchanged, according to the CFO:

• Net Interest Income (NII): Expected to be roughly $50 billion.
• Expenses: Forecasted to be about $55.7 billion.

Santomassimo also noted that the bank's net interest margin for the third quarter is on track to perform better than initially expected.

Healthy Consumer Backdrop

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The improved loan outlook is underpinned by the resilience of the American consumer, Santomassimo explained. He pointed to strong spending and credit data, stating that the bank is not observing any deterioration in delinquency trends.

"Debt-to-income levels are quite good overall," Santomassimo said, adding that the broader economy continues to expand. This assessment provides a key data point for investors monitoring the impact of inflation and interest rates on consumer behavior.

Investment Banking Growth

Wells Fargo also anticipates solid performance from its corporate and investment banking division. Santomassimo projected that third-quarter investment banking fees would rise by a mid-single-digit percentage, with markets and trading revenue also expected to grow by a similar amount.

This forecast stands in contrast to commentary from rival Bank of America, whose CEO Brian Moynihan said Monday that he expects his firm's investment banking fees could fall by at least 10% in the third quarter. Santomassimo affirmed that Wells Fargo will continue to invest in its investment banking coverage, particularly in sectors like healthcare and technology, media, and telecom (TMT).