On March 17, 2020, a woman walked past the Wells Fargo Bank in New York City, USA.
Gina Moon | Reuters
FuGuo bank Friday report first quarter earnings Revenue beat Wall Street expectations despite a decline in net interest income.
Here’s how the company performed compared to Wall Street expectations, according to a survey of analysts by LSEG (formerly Refinitiv):
- Earnings per share: 1.26 cents adjusted, 1.11 cents expected
- Revenue: $20.86 billion, $20.20 billion expected
Wells Fargo’s shares initially sold off following the earnings release, but later reversed higher and were up about 1% in premarket trading Friday morning.
Wells Fargo said its net interest income fell 8% in the quarter as rising interest rates impacted funding costs and customers shifted to higher-yielding deposit products.
The company’s net profit fell to $4.62 billion, or $1.20 a share, from $4.99 billion, or $1.23 a share, a year earlier. Excluding a $284 million, or 6 cents a share, charge from the Federal Deposit Insurance Corporation for bank failures in 2023, Wells Fargo said it earned $1.26 a share, above analysts’ expectations of $1.11 a share. .
Revenue was $20.86 billion, above expectations of $20.2 billion.
“Our solid first-quarter results demonstrate the progress we continue to make in improving and diversifying our financial results,” Wells Fargo CEO Charlie Scharf said in a statement.
“Our investments across the franchise resulted in higher revenue compared to the fourth quarter, as growth in non-interest income more than offset the expected decline in net interest income,” Schaaf added.
In the most recent period, the bank set aside $938 million as a provision for credit losses. The bank said the provision included reduced provisions for credit losses, driven by commercial real estate and auto loans.
Wells Fargo shares are up more than 15% so far this year, outpacing the S&P 500’s 9% return.
The bank repurchased 112.5 million shares of common stock in the first quarter, for about $6.1 billion.
