Essay on Wells Fargo Financial Analysis

Essay on Wells Fargo Financial Analysis

Length: 1358 words (3.9 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Wells Fargo Financial Analysis

For this project, we researched Wells Fargo?s performance in the last couple of years as a way to check on its progress to greatness. What we found was an overwhelmingly charismatic company that not only puts down its values in ink, but also strictly abides by them. Much to our surprise, a huge chunk of their thick annual report for 2002 was an honest listing of all the threatening factors that stand in the company?s way rather than its exceptional rankings in its sector. In this paper, we will focus specifically on Wells Fargo?s leadership, company culture, SWOT analysis, and financial performance analysis. We will try to link our findings to Jim Collins?s book as a way to prove that the company has really made the jump from good to great.

Charismatic Leadership
The CEO Dick Kovacevich became the head of the company in 1998 after its merger with Norwest Corp. ?Business Week? classifies him as one of the best managers: ?While many of his peers have been embroiled in one scandal or another, Wells Fargo & Co. CEO Richard M. Kovacevich, 59, has kept his bank safely out of the fray? (BW). Kovacevich obtained his MBA from Stanford after an injury in his shoulder kept him from becoming a pitcher for the New Yorker Yankees. Nevertheless, Kovacevich transports his athletic attitude to his business ?pitching hard and fast? in his industry (RMA Journal). For him, mistakes are unavoidable part of business but he treats them as opportunities to learn and grow. His core strategy is to sell as many products as possible to each customer. Currently, four products are sold on average to each customer, which is double the industry average. Furthermore, Kovacevich admits to his willingness to sacrifice a little profit margin for the purpose of building lasting and trusting relationships with their customers. Kovacevich has also invested in building better relationships between the management and the workers because for him having the right people on the team is crucial. He acknowledges the need for decentralization in such a big company, for the purpose of which the right people have to be picked and allowed to run the segment as if they own it. Ever since becoming a CEO, he has made worker satisfaction a top goal for Wells Fargo. He has also introduced incentives for his ?people goals? expressed in the generous bonuses (ranging from 10 ...

... middle of paper ...
The financial data for the company is convincingly good-to-great. Its revenues has been rising constantly since 1998 as can be seen on the exhibit. Net income for 2002 was the highest in 5 years ? $5,710 million, rising by 58% since 2001. Its total assets have increased by 13.6%.

Wells? financial performance is great compared to its competitors? as well. It has shown revenue growth (1%) above the industry average 0%, and well above the negative numbers in its biggest rivals BofA, Bank One Corp. and US Bank. Its revenue and net income are also much above the industry average and second only to BofA. Clearly, WFC is one of the best in its industry. More financial analysis can be found in the attached exhibits.

Our research has convinced us that WFC has made the transformation from a good to great company. We found that it has preserved its humane humble management style and its core values and culture, and together with the right people on the bus and with the sensible use of technology, has progressed even further. Their performance has been praiseworthy ? WFC survived the economic recession as one of the nation?s leaders in the financial services companies.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Wells Fargo Financial Analysis Essay

- In March 1852 Henry Wells and William Fargo founded Wells, Fargo & Co. to serve the West. The new company offered banking (buying gold, and selling paper bank drafts as good as gold) - and express (rapid delivery of the gold and anything else valuable). Wells Fargo opened for business in the gold rush port of San Francisco, and soon Wells Fargo’s agents opened offices in the other new cities and mining camps of the West. In the boom and bust economy of the 1850s, Wells Fargo earned a reputation of trust by dealing rapidly and responsibly with people’s money....   [tags: essays research papers]

Better Essays
1141 words (3.3 pages)

Wells Fargo & Company Analysis Essay

- 1 Aakriti Lakshmanan 08/05/2016 Mr.Havner Current Event 2 Wells Fargo & Company is a very diverse financial service company. It is community based, and has 1.9 trillion dollars in assets. Wells Fargo provides banking, insurance, mortgage and commercial financial services through many different outlets, including 8,600 locations and 13,000 ATMs. It was founded in 1852, and has 70 million customers, attended to by more than 267,000 employees in many different countries. In the second quarter of 2016, Wells Fargo was ranked third in assets....   [tags: Bank, Banking, Cheque, Financial services]

Better Essays
912 words (2.6 pages)

Essay on Equity And Financial Services At Wells Fargo & Company

- Do Investors React to Stock Dividends. Wells Fargo & Company is an American public company which deals with banking and financial services headquarters in San Francisco, California. It is the word second largest bank in the market capitalization and ranked as the third largest in the U.S in terms of its assets. The dividends record from the period 2001 to date is shown in the table below. The company has made quarterly payments based on the presentation of their annual financial reports to the shareholders....   [tags: Stock, Stock market, Dividend, Balance sheet]

Better Essays
859 words (2.5 pages)

The Threat Of A Negative Image Of Wells Fargo & Co. Essay

- Threats to the organization involve the various competitors in the financial services industry as well as key partners in the supply chain. When discussing competitors, an obvious threat will be loss of market share to other institutions. With the negative media, many customers have switched their banking relationships to another financial services provider. Because the products in the financial services industry are generally the same from firm to firm, it is imperative that the service provided sets the organization apart....   [tags: Bank, Financial services, Citigroup]

Better Essays
1230 words (3.5 pages)

Essay on Wells Fargo

- Wells Fargo offers a wide range of financial services, claiming in its investor presentations to operate more than 80 divisions while still being able to stand for more then one thing. In addition, the company claims to be one of the most "integrated" of financial services companies. For example, instead of running a stock brokerage with separate branches and different customers, Wells Fargo stock brokers sit in retail branches, and generally only serve banking customers. ( Despite this wide range of divisions, Wells Fargo only describes in detail three different business segments when reporting results, which are Retail Banking, which is typically your everyday banking where...   [tags: Bank Banking Analysis Finance]

Better Essays
794 words (2.3 pages)

Financial Analysis : Financial Management Essay

- Over history financial advisors have played a very important role in society by handling the money of all different types of people, rich or poor, through depressions as well as economic booms. These advisors help people retire and save for events in life that are expected as well as unexpected and are ingrained in a society with ever-changing wants and needs. However, what if the same services that a human financial advisor can be made so that they are cheaper to use and can better predict market volatility....   [tags: Investment, Finance, Financial adviser]

Better Essays
1536 words (4.4 pages)

Wells Fargo : An American International Banking And Financial Services Holding Company

- Wells Fargo, is an American International banking and financial services holding company. It provides banking, mortgage, investing, credit card, insurance, and consumer and commercial financial services. In July 2015, Wells Fargo became the world’s largest bank with 8,700 branches and 13,000 ATMs. In addition, it was the second largest bank in deposits, home mortgage services, and debit cards. Wells Fargo’s main office is located in Sioux Falls, ND., and was recognized as one of the, “Big Four Banks”, which included JPMorgan Chase, Bank of America, and Citigroup....   [tags: Bank, Credit card, Bank of America, Wells Fargo]

Better Essays
1061 words (3 pages)

At Wells Fargo, Teamwork And Sales Essay

- At Wells Fargo, teamwork and sales are important skills needed in order to succeed as a teller. At Wells Fargo, I plan to incorporate a system where each teller gains the skills necessary so that each task runs efficiently. To begin, I will start observing each banker’s, and each teller’s normal routine. I will be listening carefully to the conversations the tellers, and bankers are having with customers. As an observer, I will be taking notes on what the employee’s strengths and weakness are when lobbying to a customer, and working with coworkers....   [tags: Customer service, Management, Wells Fargo]

Better Essays
734 words (2.1 pages)

Universal Bank : A Financial Institution Essay

- A universal bank is a financial institution combining corporate (retail and wholesale) and investing banking activities. Simply put, it performs all functions of a corporate bank; accepting deposits, granting loans, cash management, guarantees and that of an investment bank; managing equity and debt issues for companies, advising on merger and acquisitions, capital market activities and asset management facilities. Barclays, RBS, Standard Chartered for UK, Wells Fargo, Bank of America Merrill Lynch for U.S.A are some examples for universal banks....   [tags: Bank, Banking, Bank of America]

Better Essays
1094 words (3.1 pages)

Wells Fargo Pay $ 185 Million Fine Over Account Openings Essay

- Wells Fargo to Pay $185 Million Fine Over Account Openings According to our text, a customer’s contact with a business, or its products, initiates the formation of that customer’s evaluation, the level of customer satisfaction, of that business and its products, which is based on that customer’s pre-established expectations (Levens, 2012, p. 71). Definitively, customer satisfaction is the degree to which a product meets or exceeds customer expectations (Levens, 2012, p. 71). A company must manage customer’s expectations of their brand; and the delivery, execution and status of its products and services....   [tags: Bank, Cheque, Wells Fargo, Retail banking]

Better Essays
1125 words (3.2 pages)