Wells Fargo & CoWFC just reported, and I wanted to share three charts quickly. An excellent way to understand the health of the bank's balance sheet is through their net charge-offs as a percent of total loans. While this isn't a forward indicator, the directional trend can help inform us of potential future economic conditions.
Net charge-offs overall for Wells are low, trending lower, and muted. Currently, they just reported a net charge-off rate of .32%, up quarter on quarter, but down year on year.
Their credit card loan business is less rosy. The trend continues to move higher, and their earnings report indicated a 3.69% rate. This level is well above 2 years ago, and .03% above the prior quarter.