The Numbers Don't Lie: Wells Fargo Earnings Preview

The video discusses Wells Fargo's significant involvement in oil and gas loans, highlighting the financial risks and impacts due to the collapse in oil prices. Analysts expect Wells Fargo to increase reserves for the first time since the financial crisis. The bank's revenue growth is minimal compared to peers, with a focus on basic banking and net interest margins. Despite challenges, Wells Fargo remains a major player in mortgage origination, with substantial earnings from loan servicing.

What is the main concern for banks, especially Wells Fargo, due to the collapse in oil prices?

• Decline in customer deposits

• High exposure to energy loans

• Rising interest rates

• Increased competition from other banks

How much did EMP companies owe Wells Fargo at the end of last year?

• $20 billion

• $15 billion

• $5 billion

• $10 billion

What is expected to happen to Wells Fargo's reserves for the first time since the financial crisis?

• They are expected to decrease

• They are expected to double

• They are expected to remain the same

• They are expected to turn positive

What is a key metric for Wells Fargo due to its focus on basic banking?

• Cost-to-income ratio

• Loan-to-value ratio

• Net interest margin

• Return on equity

What percentage of all market mortgages did Wells Fargo originate at the end of last year?

• 12%

• 10%

• 15%

• 8%