The company got another shot in the arm when Moody's Investors Service said Wednesday that Wells Fargo was well-positioned to weather the economic turbulence ahead.
While an increase in prime loan rates will likely impact both interest income as well as interest expense for Wells Fargo, the fact that Wells Fargo derives the majority of its funding from low cost core deposits will help the firm restrain its interest expense even as interest rates increase and thus boost its net interest margins.