In the latest quarter, costs equated to 56.7% of Wells Fargo's net revenue. That compares to Bank of America's efficiency ratio of 66.1%, implying that Wells Fargo passed nearly 10 percentage points more of its net revenue down to the bottom line compared to the North Carolina-based Bank of America. Wells Fargo is able to outperform Bank of America as well as most other banks in this regard thanks to four specific competitive advantages, all of which reduce its expenses: Credit rating -- Wells Fargo has one of the highest credit ratings in the bank industry, earning an A+ rating from Standard & Poor's...
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