The sale includes commercial-distribution and vendor- finance units, and a portion of the corporate-finance business, from GE Capital, San Francisco-based Wells Fargo said Tuesday in a statement that didn’t include additional terms.
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The companies did not disclose the purchase price, but both said the businesses being purchased have about $32 billion in loans and leases. The Organization supplies commercial, retail and corporate banking services through the Internet and offices, banking shops and other distribution channels to businesses, individuals and associations in all the District of Columbia, around 50 states and in other nations. Compass Point reissued a “neutral” rating and issued a $55.00 target price (up from $54.00) on shares of Wells Fargo in a research report on Wednesday, July 15th.
“It’s rewarding to know that every SBA loan we approve is helping more American small business owners succeed financially and grow their businesses”, said Donna Serres, head of Wells Fargo’s SBA Lending Division.
In April, GE made an announcement that it is planning to sell off a few $200 billion in GE Capital financing assets as it is focusing more on its manufacturing of industrial goods that would set off a series of transactions for the U.S. conglomerate. “Globally, GE Capital expects to be substantially done with its exit strategy by the end of 2016”. Oppenheimer restated a market perform rating on shares of Wells Fargo in a report on Friday, July 17th. Wells Fargo presently has an average rating of Buy and an average price target of $59.39. It has total assets of about $9 billion.
In other news, EVP James M. Strother sold 31,000 shares of the company’s stock in a transaction dated Thursday, July 23rd.
Last year, the company reported earnings of $1.02 per share on revenue of $21.2 billion for the 2014 third quarter.
“SBA Lending is an important part of Wells Fargo’s support for small businesses because it gives us the ability to provide essential financing for small business customers who may not be able to obtain a conventional loan”, said Serres.
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Wells Fargo & Company is a fiscal and bank holding company. Its main business would be to behave as a holding company because of its subsidiary companies.
