Unlike other big banks, it’s managed to sidestep having to make large divestitures or pay sizable compliance costs.
Wells Fargo also has one of the best balance sheets in the industry, with nonperforming loans making up less than 1% of its overall asset base.
Because of that, Wells Fargo was able to take advantage of General Electric’s (NYSE: GE) need to divest its GE Capital lending arm.
Wells Fargo bought GE’s rail leasing and asset-based lending businesses, which should provide another key growth opportunity.
Investors shouldn’t be afraid of Wells Fargo’s premium valuation, as it has the industry’s best returns on capital and a clean balance sheet.
This article is brought to you courtesy of Marshall Hargrave from Wyatt Research.