Fed's rate hike would "absolutely" help banks, says Wells Fargo's CEO

An interest rate hike by the Federal Reserve would “absolutely” help US banks, said Wells Fargo & Co’s chief executive John Stumpf.

Speaking at the Sanford C. Bernstein Strategic Decisions conference on Friday, Stumpf said he expected the US central bank to increase interest rates by 25 basis points this year, possibly in September.

Stumpf added that, unlike previous cycles, he anticipated Fed’s rate moves to be "very data dependent”.

"Will higher rates help us? Well, absolutely," he said, adding that his bank could still perform well in the current environment.