![Wells Fargo WFC earnings Q1 2024 Wells Fargo WFC earnings Q1 2024](https://newsnetdaily.com/wp-content/uploads/2024/04/107398743-17126785462020-03-18t000000z_260167136_hp1eg3i02rnh3_rtrmadp_0_health-coronavirus-banks.jpeg)
A woman walks past the Wells Fargo bank in New York, the United States, March 17, 2020.
Jeenah Moon | Reuters
Wells Fargo Shares fell Friday after the bank reported first-quarter results that showed a decline in interest income.
Wells said its net interest income fell 8% in the quarter, due to the impact of rising interest rates on financing costs, including the impact of customer migration towards higher yield deposit products.
Here’s how the company performed compared to what Wall Street expected, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $1.26 cents adjusted versus $1.11 cents expected
- Revenue: $20.86 billion versus $20.20 billion expected
The company saw its net income decline to $4.62 billion, or $1.20 per share, from $4.99 billion, or $1.23 per share, a year earlier. Excluding a $284 million charge from the Federal Deposit Insurance Corporation, or 6 cents per share, related to 2023 bank failures, Wells said it earned $1.26 per share, beating analysts’ estimates of 1.11 $ per share.
Revenue of $20.86 billion beat the estimate of $20.20 billion.
For the most recent period, the bank set aside $938 million in provisions for credit losses. The bank said the provision included a decrease in the provision for credit losses, driven by commercial real estate and auto loans.
Shares of Wells fell 1.6% Friday morning in premarket trading. The stock is still up more than 15% year to date, outpacing the S&P 500’s 9% return.
“Our strong first quarter results demonstrate the progress we continue to make to improve and diversify our financial performance,” Wells CEO Charlie Scharf said in a statement.
“The investments we are making across the franchise contributed to an increase in revenue compared to the fourth quarter, as an increase in non-interest income more than offset the expected decline in net interest income,” added Scharf.
This is breaking news. Please check again for updates.
cnbc