Wells Fargo Financial (NYSE: WFC) will be shutting down its Canadian operations , the San Francisco-based bank confirmed on Friday.
“We have shifted our focus to serving existing real estate, auto, and consumer loan accounts. There will be no change to our customers’ existing account terms and conditions,” the company wrote on its website:
Wells Fargo Financial has about 120 locations in Canada and more than 800 Wells Fargo team members in the country will be impacted, said Diana Rodriguez, vice president of communications for Wells Fargo Financial.
Rodriguez said that approximately 450 Wells Fargo team members who will remain in Canada to service the company’s existing loan portfolio.
“Wells Fargo’s loan origination business in Canada has not been generating sufficient financial returns,” she said. “So we’re making the difficult, yet prudent decision to cease originations at this time.”
Rodriguez noted that only Wells Fargo Financial operations will be effected and other divisions of the bank still have “robust operations” in the country.
Wells Fargo “began to withdraw consumer lending from Canada in 2008 at the height of the financial and economic crisis. In November 2008, it decided to exit the indirect auto-lending business,” the Financial Post said in an article. “Then, last July, Wells Fargo stopped offering residential mortgages and home-equity loans in Canada.”