Wells Fargo's (NYSE:WFC) Loan Portfolio Starting to Grow

With signs of loan growth emerging from Wells Fargo (NYSE:WFC) and a closer watch on the operational costs, Barclays sees them to slightly beat EPS consensus in the fourth quarter.

Barclays says, "The WB integration appears on-track and signs of loan growth are emerging, in part, we believe, due to market share gains and business mix. While regulatory costs are expected to increase in 4Q10 and 2011, we expect more vigilance on the expense front going forward...We expect WFC to report 4Q EPS of $0.62 vs. consensus of $0.61. Net MSR gains, security gains and reserve release could push EPS above our forecast."

Barclays maintains an "Overweight" rating on Wells Fargo, which closed Tuesday at $31.40, up $0.20, or $0.64 percent. Barclays has a price target of $36 on the company.