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Wells Fargo $WFC reported better than expected first quarter earnings before the bell on Friday along with JPMorgan $JPM, Citigroup $C and PNC Financial $PNC. Earnings hampered by seemingly endless scandals and their future rebrand. ATM classic

Note The results are subject to change with regulators  seeking a $1 billion penalty  on the WFC wealth management unit.

Earnings

EPS of $1.12 on revenue of $21.93 billion,beating estimates for $1.07 EPS and $21.68 billion in revenue.

Wells Fargo & Co NYSE: $WFC

Reaction April 13, 11:55 AM EDT 51.13 ▼ 1.56 (2.96%)

Breakdown

  • Community banking revenue flat at $11.3 billion
  • Wholesale banking revenue fell 4% to $7.28 billion.
  • Net interest income fell 1% to $12.2 billion.
  • Total loan balance was down 1.2% to $947.3 billion. Average deposits fell by $2 billion or 0.5% to $1.3 trillion

Wells Fargo is still trying to recover from the fake account scandal surrounding its sales practices, in which employees in its consumer banking division created fake accounts amid a high-pressure sales environment. More issues surrounding the bank's practices continue to surface. The Fed in February barred the bank from growing until it "sufficiently improves its governance and controls."

The banking sector received a boost earlier in the year after the largest U.S. banks passed Fed stress tests and were allowed to raise dividends and share buybacks. The Fed as it raise rates is helping banks' finances. Since Donald Trump won on Election Day has been a huge run higher on bank stocks. Caution hangs over the sector as auto and student loans also overhang the banking and finance sectors.   The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto.

Source: WFC, Alphastreet

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