Wells Fargo Bets on Credit Cards & Auto Loans to Drive 2026 Growth

Core Insights - Wells Fargo & Company (WFC) anticipates loan growth to accelerate in 2026, primarily driven by credit cards and auto lending [1][5] - The bank's credit card portfolio has been a significant growth driver, with plans for new product launches targeting wealth-management clients [2] - Auto lending is gaining momentum through partnerships with major car manufacturers like Volkswagen and Audi, while the mortgage segment is expected to remain flat due to high interest rates [3][4] Loan Growth Outlook - Management expects mid-single digit loan growth in 2026, supported by solid consumer spending and credit quality [4][5] - The removal of the Federal Reserve's asset cap provides Wells Fargo with more flexibility for organic growth after years of regulatory constraints [4] Peer Comparison - Bank of America (BAC) reported net loans and leases of $1.17 trillion as of December 31, 2025, reflecting an 8.3% increase from the previous year [6] - PNC Financial has experienced a 5.5% CAGR in loans over the past six years and expects average loans to rise by 5% in 2026 [8][9] Price Performance and Valuation - Wells Fargo's shares have increased by 15.6% over the past six months, outperforming the industry growth of 6.9% [10] - The bank's current price-to-earnings (P/E) ratio is 13.14X, which is below the industry average of 14.64X [14] - Earnings estimates for 2026 and 2027 indicate year-over-year growth of 9.9% and 12.8%, respectively [17]