A little over four months after the removal of an asset cap that ​had been imposed by the federal ⁣Reserve, wells ⁢Fargo aims to shift the conversation from the improvements⁢ it made‍ to earn that ⁣achievement ‌to ⁤the work it has done to improve growth and returns.

“Wells Fargo, without the regulatory ‍constraints and with⁤ the​ changes we have made, ​is a significantly more attractive company than what we were several years ‍ago,‌ and we believe this positions⁣ us for continued higher growth‍ and returns,” Wells Fargo Chairman⁢ and CEO​ Charlie Scharf said Tuesday (Oct. 14) during the⁣ bank’s quarterly earnings call.

The asset cap that was removed by the ‍Federal Reserve on⁤ June 3 was imposed in February 2018 as part of an enforcement action ⁣after a scandal that included Wells Fargo opening accounts without customer permission. The asset​ cap prevented the bank from growing beyond its asset level at the end of 2017.

Background:⁣ the 2018⁤ Scandal ​and Asset Cap

The Federal‌ Reserve’s action in 2018 stemmed ‌from widespread misconduct ⁤at Wells ‌Fargo, including the creation ‌of millions of unauthorized customer accounts.According to a Consumer Financial‌ Protection ⁢Bureau⁢ (CFPB)⁣ order issued in April 2018, Wells Fargo was ordered ⁤to pay $185 million ⁣in penalties for opening these accounts, applying for credit cards without consent, and improperly enrolling customers in overdraft services.

The asset cap was intended to⁢ pressure Wells Fargo to fix its risk management ⁢and compliance failures.The⁢ Federal Reserve stated in its February ⁢2, 2018, press⁢ release that the cap would remain ⁣in place until ‍the bank demonstrated significant improvements in⁣ these areas.

Recent Performance and Future Outlook

Wells ​Fargo reported third-quarter 2024 earnings of⁤ $5.8 billion, or $1.08 per share, on October 14, 2024, according to a ‌ company press release. This ‌represents an increase compared to the $5.1 billion, or $0.93 per share,reported in the same quarter of the ⁤previous year.

Scharf emphasized ‌the bank’s progress ‍in⁣ strengthening its risk ⁣management framework and improving customer service. He stated ⁤that the removal​ of the asset ⁢cap allows⁣ Wells Fargo to pursue growth opportunities⁢ in areas such as commercial banking and wealth management.The bank is also focused​ on investing in technology and digital capabilities to enhance the customer experience.