Related media – Connected media
Wells Fargo reported mixed financial results on Friday, exceeding analyst expectations for earnings and revenue but falling short on net interest income, a key measure of profitability for banks.
Profits and revenues exceed forecasts
Despite a decline in net interest income, Wells Fargo managed to surpass Wall Street’s projections for both earnings per share and overall revenue. Earnings per share reached $1.33, exceeding the anticipated $1.29. Revenue climbed to $20.69 billion, exceeding the expected $20.29 billion.
Net interest income disappoints
The San Francisco-based lender reported a significant 9% year-over-year drop in net interest income, reaching $11.92 billion. This fell short of analyst predictions of $12.12 billion. The bank attributed this decline to the impact of rising interest rates on borrowing costs. As a result, Wells Fargo’s stock price dipped more than 5% in premarket trading.
Commission income is a positive point
While net interest income declined, CEO Charlie Scharf highlighted growth in fee-based revenue, offsetting the decline. He credited investments made by the bank that capitalized on market activity during the quarter, resulting in solid performance in investment advisory, trading, and investment banking fees.
Overall results and future plans
While net income fell slightly year-over-year, reaching $4.91 billion, Wells Fargo repurchased over $12 billion of its common stock in the first half of 2024. Additionally, the bank plans to increase its third-quarter dividend by 14%. Despite the dip in net interest income, the bank’s stock has risen more than 22% this year, exceeding the performance of the broader S&P 500 index.
Connected media – Related media
