Wells Fargo mulls branch closures

Wells Fargo & Co. may close or consolidate branches as it examines ways to trim costs, according to its chief financial officer. The bank could shut branches near one another or move some wealth management or mortgage employees into those offices, Timothy Sloan said last week at a New York investor conference. “There are obviously some regulatory issues that you need to be mindful of when you combine a securities business and a deposit-taking business,” Mr. Sloan told analysts who follow the company. “But from time to time, we are clearly going to look at opportunities to consolidate.” Banks including Wells Fargo have fallen short in efforts to replace revenue lost to new financial rules such as those capping debit card interchange fees. Chief executive John Stumpf has announced plans to trim $1.5 billion in quarterly costs by the end of this year. Mr. Sloan affirmed the goal while saying first-quarter expenses will remain elevated. Wells Fargo has completed converting the former Wachovia Corp. network to its own brand, Mr. Sloan said, giving the bank 6,239 retail branches, 1,375 retail-brokerage offices and 725 mortgage locations at the end of 2011, according to last week's presentation. That outpaces Bank of America Corp. for the largest U.S. network of outlets. Wells Fargo has the biggest market value among U.S. lenders at about $160 billion and ranks first in home lending and mortgage servicing. The retail brokerage ranks third by number of financial advisers, according to the company.