“While we still believe that WFC is uniquely positioned to take advantage of the refinance wave, exposure to mortgage banking should be less of a benefit,” Goldman Sachs wrote, referring to the company by its stock ticker. “We forecast a gradual decline in mortgage-banking revenues.”
Full-year revenue from commercial and corporate customers at the investment bank jumped 30 percent, with the statement citing attractive capital markets and selling more products to existing customers.
The bank has been expanding its securities business, headed by John Shrewsberry, where competitors have scaled back or quit the market. In October, Wells Fargo restructured the sales and trading business to make it easier to serve clients, and in December beefed up its mortgage research with the hiring of Freddie Mac’s Greg Reiter.