Business Strategy and Outlook
| Eric Compton, CFA |Wells Fargo remains in the middle of a multiyear rebuild. The bank is still under an asset cap imposed by the Federal Reserve, and we don't see this restriction coming off in 2022. Wells Fargo has years of expense savings related projects ahead of it as the bank attempts to get its efficiency ratio back under 60%. We also see a multiyear journey of repositioning and investing in the firm's existing franchises, including growing its capital markets wallet share, bringing an increased focus on cards, and revitalizing an advisory group that has lost advisors for years. We're already starting to see glimpses of the transition to offense from defense, as the bank released two new card products in 2021, the first attempt to do so that we can think of in years. However, we expect the full transition to be a multiyear undertaking.