Wells Fargo reported on Friday First quarter results and revenue that beat Wall Street expectations despite a decline in net interest income.
Here’s how the corporate performed in comparison with Wall Street’s expectations, based on a survey of analysts by LSEG, formerly referred to as Refinitiv:
- Earnings per share: 1.26 cents adjusted versus expected 1.11 cents
- Revenue: $20.86 billion vs. expected $20.20 billion
Wells shares traded flat on Friday following the discharge of its earnings report.
Wells said its net interest income, a key measure of what a bank earns on loans, fell 8% within the quarter attributable to the impact of upper rates of interest on funding costs and a shift by customers to higher-yielding deposit products.
Net interest income for 2024 is anticipated to say no within the range of seven% to 9%, which stays unchanged from the previous forecast.
A girl walks past the Wells Fargo Bank in New York City, USA, on March 17, 2020.
Jeenah Moon | Reuters
The San Francisco-based bank reported a decline in net income to $4.62 billion, or $1.20 per share, compared with $4.99 billion, or $1.23 per share, a 12 months earlier. Without making an allowance for any charge from the Federal Deposit Insurance Corp. of $284 million, or 6 cents per share, related to the bank failures in 2023, Wells said it earned $1.26 per share, beating analysts’ estimates of $1.11 per share Share.
Revenue got here in at $20.86 billion, above the estimate of $20.20 billion.
“Our solid first quarter results demonstrate the progress we continue to make to improve and diversify our financial performance,” Wells CEO Charlie Scharf said in a press release.
“The investments we are making across the business contributed to higher revenues compared to the fourth quarter, as an increase in noninterest income more than offset the expected decrease in net interest income,” Scharf added.
For essentially the most recent period, the bank put aside $938 million as a provision for loan losses. The bank said the availability includes a discount within the allowance for loan losses attributable to industrial real estate and auto loans.
Wells’ stock is up greater than 15% year-to-date, outperforming the S&P 500’s return of 9%.
The bank repurchased 112.5 million common shares, or $6.1 billion, in the primary quarter.
