Wells Fargo Bank Financial Analysis

Wells Fargo Bank is an international banking institution that offers financial and banking services. It holds the third position on the largest banking institution on asset base in the United State of America. It has also been recognized as the second largest bank in terms of customer deposits and mortgage services (Perez, 2014). Some of the operations that are carried out in this bank include banking, retirement benefits management, wealth and brokerage. Banking is segmented into community banking and wholesale banking. Community banking deals with customer service, regional banking, marketing, and selling of the company products to customers. Wholesale banking, on the other hand, involves selling of products to the large and medium enterprises,

Increased customer base leads to increased profits for the entire business. According to Perez (2014), banking is a distribution business and as is seen in distribution, there is the need for a large footprint so as to get more customers to sell the banking service to. Big banks normally tend to expand more than the small banks and as they expand, they continue increasing in size. Wells Fargo Bank has grown in all the states in the United States of America. Due to this expansion, their pool of clients has grown considerably, therefore, increasing the demand for the bank products. The expansion of the bank to every part of America has made its presence stronger as compared to other banks such as JP Morgan Chase and the Bank of America. The expansion to every part of the state has also led to increased borrowing from the bank, there is also increase in the number of deposits in the bank as the level of investment clients continue to rise. The increased demand for loans leads to increase in the number of fees and interest collected by the bank which on the hand translates to increased profits for the business (Madura, 2014). With many branches countrywide, those that are not performing or are yet to break even, their losses are covered by the performing

Some of the products offered by the company apart from lending is investment and wealth investment. When the clients invest their money through this bank, the amount of money held by the bank increases and therefore the bank can lend more to its clients which in turn creates profits through the interests earned from the loans. The diversity in the products enhances the ability to cross-sell which is defined as the ability to sell other products to an existing client who uses some of the bank's products. Wells Fargo has been recognized as the best bank in cross-selling of products as compared to its peers (Madura, 2014). The diversity in products also helps the company to realize profits in a diverse manner. When one of the bank's products is not performing well, the profits derived from the other products absorb the losses of that one product and the business is able to move on very