By Elizabeth Dilts Marshall and Niket Nishant

NEW YORK (Reuters) – Wells Fargo (NYSE:) & Co’s Chief Govt Officer Charlie Scharf mentioned Wednesday he desires to develop Wells’ company and funding banking enterprise on Wednesday by $1 billion alternative.

The financial institution has traditionally targeted on its retail and enterprise clients, and put much less emphasis on its buying and selling and company dealmaking operations, Scharf mentioned.

“We at all times instructed individuals we’re Foremost Avenue. We’re not Wall Avenue. It is about kitchen tables, not league tables,” mentioned Scharf, talking at a convention sponsored by funding analysis agency AB Bernstein.

In reality, Scharf mentioned, roughly half of the financial institution’s revenues come from its company & funding banking division and the providers it gives to middle-market firms.

Scharf goals to develop Wells’ public underwriting enterprise and promote extra funding banking merchandise and advisory providers to present shoppers, whom the financial institution already is aware of and has vetted and who’ve gone to rival banks for these providers.

“We have checked out our personal buyer base, and… how a lot these clients pay the Avenue,” Scharf mentioned, referring to conventional Wall Avenue banks like JPMorgan Chase & Co (NYSE:), Morgan Stanley (NYSE:) and others. “It is big — like $4 billion to $5 billion or one thing. And also you take a look at what we receives a commission, and it is teeny.”

“These are people that we’re already taking the financing danger on. We all know them intimately. It is a $1 billion alternative simply with our personal clients.”

Wells Fargo has operated beneath a $1.95-trillion asset cap since 2018, when the U.S. Federal Reserve ordered the financial institution to enhance its governance and danger controls following gross sales observe scandals.

Because the fourth-largest U.S. lender, and people constrains have restricted Wells Fargo’s skill to develop.

Talking on the convention, Scharf additionally mentioned the financial institution is reevaluating and certain scaling again its mortgage enterprise.

“We cannot be as giant as we have been traditionally,” Scharf mentioned.