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Wells Fargo on Friday reported third-quarter earnings and revenue lower than last year, amid a sharp decline in net interest income.
Here’s how the bank compared to Wall Street estimates, based on a survey of analysts by LSEG:
- Earnings per share: $1.42 per share, not comparable to estimate of $1.28
- Income: $20.37 billion versus $20.42 billion expected
Shares of the bank rose 3% in premarket trading following the results.
The San Francisco-based lender reported $11.69 billion in net interest income, a key measure of a bank’s lending revenue. This figure represents an 11% decrease from the same quarter last year, which is lower than the FactSet estimate of $11.9 billion. Wells said the decline was due to rising funding costs amid customer migration to higher yielding deposit products.
“Our earnings profile is very different than it was five years ago as we have made strategic investments in many of our businesses and reduced or sold others,” said CEO Charles Scharf in a press release. “Our revenue streams are more diversified and fee income grew 16% in the first nine months of the year, more than offsetting net interest income headwinds.
Wells saw its net income fall to $5.11 billion, or $1.42 per share, in the third quarter from $5.77 billion, or $1.48 per share, in the same quarter last year. ‘last year. Revenue fell to $20.37 billion from $20.86 a year ago.
The bank took a $1.07 billion provision for credit losses, which included a slight decrease in the allowance for credit losses.
Wells repurchased $3.5 billion of common stock in the third quarter, bringing the nine-month total to more than $15 billion, representing a 60% increase over last year.
The bank’s shares have gained 17% in 2024, lagging the S&P 500.