Wells Fargo CFO: Loan Growth Is As Strong As It Has Been In Some Time

The biggest mortgage lender in US, Wells Fargo & Co WFC, came with better than expected fourth quarter results January 14. The company posted profits of $5.71 billion on revenues of $21.4 billion, compared to profit of $5.61 billion on revenues of $20.67 billion posted for the same quarter last year.

Following the results, John Shrewsberry, Wells Fargo CFO was on CNBC to discuss loan growth and impact on business due to falling crude prices.

Related Link: Update: Wells Fargo Q4 Profit Meets Estimates

Loan Growth: Where Is It At?

“Loan growth for Wells Fargo in the fourth quarter annualized third to fourth quarter grew at 13 percent, which is as strong as its been in some time.” “So, some of that is in mortgages. It’s in autos; it’s in credit cards, it’s in all categories of commercial and industrial lending,” Shrewsberry said. “For example, energy lending may slow down because of what’s going on there. Overall very bullish quarter and showing up in loan totals.”

What Portion Of Loan Portfolio Is In Oil And Gas, Exposure To Drop In Oil Prices?

“In loans, it’s about 2 percent of our portfolio,” Shrewsberry said. “We have about $850 or $860 billion worth of loans and in that portfolio, it includes the upstream exploration and production folks, it includes services, it includes midstream or pipeline companies and it includes the larger integrated oil companies as well.”

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He continued, “So, it’s a very modest portion of the portfolio. Much of it is done on a reserved basis where we actually re-margin people down as prices move. So, this isn’t our first cycle; we are set up for this cycle. We have got a team that’s been on the ground for forty years. We are taking it very seriously, but it amounts to 2 percent of the loans.”