Wells Fargo is growing its technology banking group team on the heels of the Federal Reserve’s recent lifting of the bank’s asset cap. 

The team has grown by 25% over the past year, Chief Executive Charles Scharf said today during the bank’s second-quarter earnings call.

“We expect to continue to add bankers to this priority sector and in a number of additional markets and sectors where we have room to grow,” he said. 

Scharf added that the bank will add to its Wells Fargo Premier team and has increased its branch advisers by 10% year over year as it invests in its branch network. Wells Fargo Premier provides banking service to high net worth individuals, according to the company. 

Fed’s asset cap 

The $1.7 trillion bank was subject to an asset cap of $1.95 trillion imposed in 2018 by the Fed after a series of scandals including creating millions of fake customer accounts. The Fed announced on June 3 that it was lifting the cap. 

“The lifting of the asset cap marks a pivotal milestone in our transformation, along with the termination of 13 [Fed] orders since 2019,” Scharf said. “We are a far stronger company today because of the work we’ve done.” 

An HSBC Global Research report published today gave a “hold” rating to the bank’s stock stating that “positive recent regulatory developments, continued cost optimization efforts and relative capital flexibility” will aid in slow growth of the entity. 

HSBC expects a price-to-equity ratio of 15.2% in 2025, down from 14.8% in 2024. 

The “post asset-cap removal investor focus likely turns to growth profile” as the bank has been preparing for this event for years through “franchise investments towards tech and talent,” according to a Bank of America Global Research report published July 9. 

BY THE NUMBERS: Wells Fargo reported in Q2: 

• Technology spend of $1.3 billion, up 16.4% YoY ;  

• Revenue of $20.8 billion, up 0.7% YoY;  

• Mobile active customers up 4% YoY to 32.1 million; and 
• Profit of $5.5 billion, up 11.9% YoY.  

MARKET REACTION: Shares of Wells Fargo (NYSE: WFC) were down 6.6% from market open to $77.88 as of 2:08 p.m. today. Wells Fargo has a market capitalization of $253 billion. 

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