Wells Fargo plans to cut costs by 12 percent before the end of 2012, MarketWatch and other media report.
The San Francisco-based bank announced earlier this year it would begin to cut costs and has already shut down parts of its mortgage lending business and wealth management business. Many of the savings will come as the firm completes the integration of Wachovia, Marketwatch reports. In the second quarter, expenses dropped 2% from the same period a year go to $12.5 billion. The firm aims to bring quarterly costs down to $11 billion per quarter.
Looking ahead, Wells Fargo chief financial officer Timothy Sloan said cost cuts will come mostly from removing "unnecessary complexity... and duplication." Lay-offs will not be a large contributor, "because that might slow Wells Fargo down rather than speed profit growth," Marketwatch reports, citing comments from the bank.
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