Wells Fargo CEO Charlie Scharf: We're focused on growing revenues and growing returns

Summary

Wells Fargo CEO Charlie Scharf discusses the bank's tokenized deposit initiative, emphasizes that growing revenues and returns matters more than net interest margin, reports strong Q1 results with market share gains, and makes a bullish case for the stock based on earnings growth and PE multiple expansion.

• Wells Fargo will roll out tokenized deposits to wholesale customers starting fall 2025, using blockchain for real-time 24/7 settlement.
• Customer demand for tokenized deposits is still nascent; the bank needs to prove the benefit.
• Scharf stresses that the bank's strategy is to grow revenues and returns, not to optimize net interest margin (NIM) in the short term.
• Q1 highlights: EPS up 25%, expenses well-controlled, loans and deposits growing, investment banking and markets revenues up 20% and 24% respectively.
• He argues that strong operating performance, earnings growth, and PE expansion will drive Wells Fargo's stock higher over time.
• Scharf notes the stock has already performed very well since 2021 and expects the market to eventually reward the improving fundamentals.
• A host prefaces the interview with a brief warning that energy sector is about to get slaughtered.