Wells Fargo & Co's corporate bank has a revenue problem.
FILE PHOTO: A Wells Fargo ATM machine is shown in Los Angeles, California, U.S. October 19, 2018. REUTERS/Mike Blake/File Photo
The bank first told investors in September that while it retained most customers throughout its scandals, it was having a harder time recruiting new clients. Wells Fargo executives say they are playing the long game, having their teams reach out to prospective clients to build relationships that they hope will pay off down the road.
“At the margin some of them are going to say, Wells Fargo is very good but so is JPMorgan,” he said. “Right now, no one gets fired for hiring JPMorgan.” Pelos, the corporate bank chief, has tried to compensate for the declining revenue by slashing costs. But the 3 percent reductions last year weren’t enough to offset the revenue slide. Though 2018 profit increased, the unit became less efficient. A key metric that measures the cost of one dollar of revenue, increased to 56 percent from 55 percent a year earlier.
The bank still tracks referrals across different parts of the business today, but the company no longer reports them publicly.
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