Seeking Alpha
15 Oct 2026, 12:25 UTC · 1h ago
Banks Want To Lend: The New Constraint Of This Earnings Season
Impact · against what's priced in
The reported loan growth and credit quality provide little catalyst for JPM and BAC as these outcomes are already embedded in their valuations. However, the data is more meaningful for WFC, as it provides the top-line evidence of loan growth that the market had previously been discounting.
- WFC+0.20
Challenges what's priced in
- The price assumes
A structural inflection in Net Interest Income toward management's $50 billion target
The market has been rejecting the turnaround narrative, but double-digit business loan growth provides concrete evidence of the balance sheet expansion the price had previously declined to pay for.
What WFC's price assumes · Aug 26
