Wells Fargo CEO Charlie Scharf gave CNBC's Jim Cramer a positive assessment of the consumer landscape.
“The consumer has been extremely resilient,” he said. “We’re not sitting here saying there are no risks – but what we’re seeing looks pretty, pretty strong.”
According to Scharf, consumer spending on both debit and credit cards is increasing “at a very muted pace.” Deposit balances, he added, remain strong and credit quality is “still very good.” He praised the Federal Reserve and said the central bank had managed the economy well under difficult circumstances.
Wells Fargo's latest quarter beat Wall Street's expectations and shares rose more than 4% last Friday immediately after the report was released. The company managed a significant increase in profits even as net interest income – a measure of banks' loan income – fell. Through Tuesday's close, Wells Fargo rose 1.40%.
While Scharf said Wells Fargo's quarterly results were important, he said the market could be more focused on reports than management. He pointed out that the stock fell after the last quarter but jumped after the last one – although trends were “not dramatically different” and strategies and progress in building the business had not changed significantly.
Scharf also remained neutral when asked what consequences the upcoming presidential elections could have for the economy.
“We will work with both sides,” he said. “I’m encouraged by what both candidates are saying about the way they want to interact with the economy.”
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