World Economy

Wells Fargo Loses Steam

Wells Fargo Loses SteamWells Fargo Loses Steam

Wells Fargo & Co’s two biggest competitors have been nabbing market share in lending to commercial and industrial customers in the American heartland, a sign of how difficult it has become for the scandal-tarnished bank to defend its position against rivals, Reuters reported. Earnings reports in recent days showed Wells Fargo’s book of C&I loans in the United States down 1%, on average, during the first quarter compared with the year-earlier period. In contrast, JPMorgan Chase & Co’s gained 5% and Bank of America Corp’s was 4% higher. Although the banks define C&I loans somewhat differently, their reports track government data showing Wells falling behind over the past five years from a near-tie with Bank of America and losing ground to JPMorgan. Those two banks attributed gains to opening offices and adding bankers in smaller cities around the country, a strategy Wells Fargo has embraced for decades. But as Wells struggles to recover from a sales scandal that has touched customers in businesses ranges from deposits, credit cards, mortgages and auto lending to wealth management, it has become harder for the bank to maintain its competitive edge.

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