Wells Fargo CEO Charlie Scharf stated on Wednesday that he anticipates revenue from investment banking and trading operations to increase by approximately 15% in the second quarter.
Speaking at the Bernstein conference, Scharf noted that revenue growth in the bank's wealth management division is also steadily progressing towards a low double-digit growth target.
In the first quarter, Wells Fargo's investment banking unit saw revenue grow by 12.7%, while its markets business revenue increased by 19%.
Scharf indicated that client activity remains robust in both the investment banking and markets sectors. Furthermore, the bank continues to identify opportunities to deepen client relationships by expanding the size of its balance sheet.
Previously, regulatory authorities lifted the asset cap on Wells Fargo, enabling the bank to pursue more aggressive expansion in deposits and lending after years of restrictions.
Scharf also mentioned that Wells Fargo expects to achieve this growth with "little to no increase in costs," as the institution seeks to further enhance operational efficiency across the entire company.
Wells Fargo's outlook follows optimistic commentary from competitors. JPMorgan Chase CEO Jamie Dimon, speaking at the same conference, suggested the bank's second-quarter investment banking fees could rise by 10% or more.
Bank of America CEO Brian Moynihan stated that the bank's trading revenue for the current quarter is projected to increase by about 15% year-over-year, influenced by market volatility stemming from changes in U.S. tariffs.
