First show after regulatory "loosening": Wells Fargo & Company (WFC.US) mid-term return rate directly pointed to 18%, stock price soared 7% to reach a new high in nearly a year.

After the regulatory agency lifted the asset cap on Wells Fargo & Company (WFC.US), the bank released a significant update on its mid-term profitability targets for the first time, causing its stock price to soar. On Tuesday, Wells Fargo & Company's stock price rose by 7.1%, marking its largest single-day increase since November 6th of last year. On that day, Donald Trump was elected as the President of the United States, and the market expected his policies to relax regulations and boost the economy, leading to a general increase in financial stocks. The surge in the stock price on Tuesday made Wells Fargo & Company the top gainer in the KBW Bank Index for the day. In the past month, the bank's stock price has only been surpassed by KeyCorp - whose stock price was driven by acquisition news, as it plans to be acquired by Fifth Third Bancorp, the biggest bank deal of 2025. Piper Sandler analyst Scott Siefers stated in a report to clients, "Beyond earnings that exceeded expectations, the core signal is that Wells Fargo & Company clearly has the upper hand." On Tuesday, Wells Fargo & Company increased its return on tangible common equity (ROTCE) target from the current 15% to 17%-18%. This metric is used to measure the efficiency of banks in creating shareholder returns, reflecting the speed of revenue growth and corresponding costs. As the fourth largest lending institution in the US, Wells Fargo & Company's total assets exceeded $2 trillion by the end of September. In June this year, the Federal Reserve lifted a regulatory penalty that previously limited Wells Fargo & Company's assets to no more than $1.95 trillion by the end of 2017. Since the implementation of the asset cap by the Federal Reserve, Wells Fargo & Company's stock performance has lagged behind almost all of its peers among the top five major banks. Wells Fargo & Company's CFO, Mike Santomassimo, mentioned in an interview on Tuesday afternoon that the bank plans to repurchase stocks in the last three months of the year, similar to the scale of the third quarter. The San Francisco-based bank had already repurchased $6.1 billion worth of common stock in the third quarter of this year (July-September).