Trump administration’s pro-business pledge boosts ‘optimism’ at Wells Fargo: Here’s what CEO Charles Scharf says – SPDR Select Industry Funds – Financials (ARCA:XLF), Wells Fargo (NYSE:WFC)

Wells Fargo world financial center CEO Charles Schaaf Optimistic about the president-elect Donald TrumpThe bank returned to the White House during the bank’s fourth-quarter earnings call Wednesday, citing expectations for business-friendly policies.

what happened“The U.S. economy is doing very well and remains strong,” Scharf said, noting that lower inflation and unemployment would be good for the economy in 2025.

“When the country succeeds, we succeed, so the incoming administration’s support for American businesses and consumers gives us optimism for the future,” Schaaf said.

He emphasized that the Trump administration’s more business-friendly approach to policy and regulations “should be good for the economy and our customers.”

The comments came as Wells Fargo reported fourth-quarter earnings of $1.43 per share, beating consensus estimates of $1.36, although core earnings, excluding one-time items, missed expectations. The bank’s interest-free deposits grew significantly quarter-on-quarter to 4%, which helped fund modest loan growth and reduce borrowing.

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why it’s important: Looking ahead, Wells Fargo expects net interest income to grow 1-3% in 2025, surprising analysts. The bank expects absolute growth in consumer deposits and expects loan growth to accelerate by mid-2025, assuming the Fed cuts interest rates up to two times.

Keefe, Bruyette & Woods analyst David Konrad raised his price target to $86 from $81, noting that the bank is “shifting from cost cutting to revenue growth.” Goldman Sachs maintained a buy rating while raising its target to $83, focusing on the bank’s expected expense reduction to $54.2 billion in 2025.

The results fueled broader gains in bank stocks, which Financial Select Sector SPDR Fund XLF It rose 2.6% on Wednesday, marking the sector’s strongest single-day performance since November.

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