Wells Fargo has recently seen the removal of consent orders and an asset cap, leading to higher returns and ambitious goals. The bank also boasts significant excess capital, trading at an all-time high just below $90 per share. CEO Charlie Scharf has cleaned up regulatory issues and is focused on revenue growth and efficiency.

The bank’s management aims to achieve a 17% to 18% return on tangible common equity (ROTCE) in the medium term, comparable to industry leaders like JPMorgan Chase. Lower regulatory capital requirements have led to billions in excess capital for Wells Fargo. This excess capital may result in higher dividends and share repurchases.

Despite large bank valuations not being cheap historically, Wells Fargo is well-positioned due to excess capital and a favorable regulatory environment. The bank’s success has led to significant returns for investors, with the potential for further growth and profitability. Wells Fargo’s recent achievements mark a positive turnaround for the banking giant.

Read more at Yahoo Finance: Wells Fargo Stock Just Hit an All-Time High. Here Are 2 Tailwinds Behind the Banking Giant.