“Operating at this level is not acceptable,” CEO
The bank expects to reduce staff through the centralization and streamlining of various processes, and by cutting back in the mortgage business, where loan volumes are declining from a recent rise in interest rates, chief financial officer
Shrewsberry did not provide any details on how many jobs could be cut or added.
Since last year, the bank's total employment has jumped by more than 4,000 to 272,800, as it added technology, risk and other workers. The bank has more than 24,000 in Charlotte, making it the company's biggest employment hub.
“We'll be talking about additional efficiencies that would fall to the bottom line beyond that
On Monday, the bank's board issued a 113-page report that placed blame for the scandal squarely on former community bank head
On Thursday, Wells said it racked up around
In its report, the Wells board found that the bank's decentralized business model allowed improper activities to take place in the community bank with little oversight from higher-up officials. Centralizing functions such as risk management will cost money now but could produce savings over the long run, Sloan said.
“Right now the most important job of this company is rebuilding trust,” he said.
For the quarter, the bank had an efficiency ratio of 62.7 percent, above its target range of 55 to 59 percent. The ratio means it cost the bank nearly
Another way the bank plans to reduce costs is by lowering its branch count, now around 6,000. It has previously said it plans to close 200 branches per year over two years, and Shrewsberry said the company is on track to meet that goal this year.
Wells' efficiency push comes as the bank posted a first-quarter profit of
Earnings per share were
Profits in the community banking unit fell to
JPMorgan Chase said its first-quarter profit rose 17 percent to
Wells' shares fell more than 3 percent on Thursday to
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