A branch by Wells Fargo Bank is seen in New York on March 17, 2020.
Jeenah Moon | Reuters
The actions of Wells Fargo increased Friday after the bank declared an increase in quarterly profits on the back of the stable income of the investment bank and the management of wealth.
Here is what the bank reported for the first quarter of what Wall Street was expecting, on the basis of a survey of LSEG analysts:
- Profit adjusted by action: $ 1.39, 16% higher from one year to the next but not quite comparable to the estimate of $ 1.24 due to a certain number of special items during the quarter
- Income: $ 20.15 billion against $ 20.75 billion expected
Wells Fargo’s actions have climbed almost 2% in pre-commercial trade after the results.
Net interest income, a key measure of what a bank does on loans, dropped 6% from one year to the next to $ 11.50 billion. Interest unanswered, which includes investment banking costs, brokerage and consulting commissions, increased from $ 8.65 billion to $ 8.65 billion in last year.
CEO Charlie SCHARF underlined the uncertainty of the economy caused by the actions of the Trump administration to redirect world trade, calling for a timely resolution.
“We support the will of the administration to examine obstacles to fair trade for the United States, although there are certainly risks associated with such important actions,” said SCHARF in a statement. “A timely resolution that benefits the United States would be good for businesses, consumers and markets. We are planning continuous volatility and uncertainty and are preparing for a slower economic environment in 2025, but the real result will depend on the results and calendar of policy changes.”
Wells Fargo bought 44.5 million of its own actions, worth $ 3.5 billion in the first quarter.
The lender based in San Francisco has reserved $ 932 million as a provision for credit losses, which included a drop in allowance for credit loss.
