A Wells Fargo Bank sign stands on Broadway in New York City on April 12, 2024.
Michael M. Santiago | Getty Images
Wells Fargo The company reported Friday that net interest income fell 9% even as its second-quarter profit and revenue beat Wall Street expectations.
Here’s how the bank performed compared to Wall Street expectations, based on an analyst survey by LSEG:
- Earnings per share: $1.33 compared to the expected 1.29 cents
- Revenue: $20.69 billion compared to the expected $20.29 billion
The San Francisco-based bank reported net interest income, a key measure of a bank’s lending revenue, of $11.92 billion, down 9% from a year ago. That fell short of the $12.12 billion that analysts had expected, according to FactSet, as rising interest rates hit funding costs.
Wells Fargo shares fell more than 5% in premarket trading.
“Fee revenues continued to grow, offsetting the expected decline in net interest revenue,” CEO Charlie Scharf said in a statement. “The investments we have made enabled us to take advantage of market trends during the quarter and deliver strong results in advisory, trading and investment banking fees.”
Wells Fargo’s second-quarter net income fell to $4.91 billion from $4.94 billion a year ago. The bank set aside $1.24 billion in reserves for credit losses, including a small decrease in its reserves for credit losses. Revenue for the quarter rose to $20.69 billion.
The bank plans to buy back more than $12 billion of its common stock in the first half of 2024 and increase its third-quarter dividend by 14%.
The company’s shares have risen more than 22% this year, outperforming the S&P 500.
