Wells Fargo Credit Card Applications Plunge 55% Amid Account Scandal

San Francisco-based bank Wells Fargo & Co. WFC is still struggling to recover from their scandal over bogus accounts; the September 2016 discovery involved employees opening up to two million accounts and deposits without customer consent.  

Wells Fargo reported on Monday that February credit card applications were about 200,000, a 55% decline when compared to a year ago, making it their largest slump since the account scandal. Openings of checking accounts fell 43% to around 300,000.

With the account scandal costing Wells Fargo at least $200 million and a great deal of public critique, the bank was able to find a bit of growth in February. Small business and average consumer deposit balances increased by 6% to $761.4 million, and their customer loyalty scores rose for the fourth consecutive month to 57.6%.

 “It will take time for us to work through the changes we are making in our business, but we remain focused on strengthening our relationships with existing customers and building new ones with potential customers,” said Mary Mack, head of community banking at Wells Fargo.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wells Fargo & Company (WFC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

Comments on WFC stock

Do share this awesome post