(Removes word "annual" from last paragraph.)
May 24 (Reuters) - Wells Fargo & Co lowered two key companywide financial targets on Tuesday, citing low interest rates, higher credit and compliance costs and increased regulatory capital requirements.
The San Francisco-based lender now targets a return on assets of 1.1 percent to 1.4 percent this year, down from the 1.3 to 1.6 percent it detailed in 2014. Its full-year return-on-equity target is now 11 percent to 14 percent, down from 12 percent to 15 percent.
Since Wells Fargo's 2014 guidance, it has taken actions to prepare for lower interest rates for a longer period of time. Banks typically do so by getting rid of assets that are sensitive to high rates, and shifting to assets that perform well during low rates. As a result, Wells Fargo said it will benefit less if interest rates suddenly jolt upward.
Federal Reserve officials recently signaled that the U.S. central bank could be on track to raise interest rates in June or July.
The bank now expects its net interest margin would rise 5 to 15 basis points if the yield curve shifted upward by 100 basis points. Its prior expectation was for a net interest margin benefit of 10 to 30 basis points from such a move. A basis point is one hundredth of one percent.
Wells Fargo detailed the new targets in a presentation on its website for its investor day meeting. (Reporting by Dan Freed in New York; Editing by Jeffrey Benkoe and Meredith Mazzilli)