04:01 AM EDT, 10/28/2024 (MT Newswires) -- (Updates with Wells Fargo's ( WFC ) response in the last paragraph.)

Wells Fargo ( WFC ) Chief Executive Charlie Scharf said the bank may lose $2 billion to $3 billion on commercial real estate loans over three or four years, Reuters reported Thursday.

Scharf said at an event that the lender has proper reserves to handle the losses, its "balance sheet is de-risked," and that commercial real estate is "performing very well overall" as interest rates decline.

"But there are real losses that will be taken because the level of demand is just not going to be what it was," he said, according to Reuters.

A Wells Fargo ( WFC ) spokesperson referred MT Newswires to the company's Q3 earnings presentation, saying it supports the numbers cited by Scharf.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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