Wells Fargo spent years worrying about his past. Now it can focus on the future.

Wells Fargo (WFC) I spent many years worrying about my past. Now it can focus on the future.

The fourth largest US bank plans to pursue growth and expansion in investment banks, credit cards and asset management. Major Growth Limitations For the past decade, regulators have been imposed as punishment for a fake account scandal that struck San Francisco-based financial institutions.

“Now I can start to be more enjoyable,” says Wells Fargo CEO Charlie Scharf He said in an interview with the Wall Street Journal. This past week.

Lifting the $1.95 trillion asset cap Help Schaff perform the attack as Schaff tries to put Wells Fargo into Wall Street’s major investment bank player.GS), jpmorgan chase (JPM), and Morgan Stanley (MS).

In fact, Scharf told the Wall Street Journal that he hopes Wells Fargo is one of the top five investment banks, saying, “Then there’s a debate about ‘Well, why top five? Why not four or three?” ”

On Main Street, Wells Fargo wants to catch up after missing a major opportunity to overturn deposits during the Covid-19 pandemic and the 2023 regional bank turmoil. They also want to add more credit card products and better integrate their asset management with their retail branches.

The pain of growth under the asset cap has been increasingly disadvantaged for years behind Wells Fargo’s “continued gifts” for its competitors, Piper Sandler Bank analyst Scott Sheefers told Yahoo Finance.

Cultivation at US consumer banks is where “heavy lifting” is needed to move stocks in Wells Fargo higher, TD securities analyst Stephen Alexoros added in a note last week. The consumer business draws almost half of the bank’s revenue.

Still, “Flecting growth in the region is far from layup,” added Alexopoulos.

Even after passing a significant milestone, Wells Fargo stocks haven’t skyrocketed, reaching 2% this past week. However, ahead of rival Citigroup, it has increased by 30% over the past 12 months (c) and Bank of America (bac) While JPMorgan and Goldman Sachs were behind.

“We didn’t change EPS estimates, but over time, I think they’re in growth mode and ideally in market share gain mode,” said Siefers of Piper Sandler.

Wells Fargo shows improvements faster in the short term, and is one of the places where we hope that spending on risk and compliance costs will improve more quickly.

For years, banks have leaked millions of people to strengthen their businesses to meet regulatory expectations. Now that Wells Fargo’s growth restrictions have been removed, analysts hope that many extra spending will be brought back to bank growth.