Wells Fargo’s stock slips after falling more than anticipated, but profit breaks miss streak


Wells Fargo & Co. shares of WFC,
+ 2.81%
The bank beat expectations for the first time in six quarters on Friday due to fourth-quarter profit, but premarket trading declined 2.5% after revenue fell more than the 2.5 percent interest rate lower than expected interest rate. Net income rose to $ 2.87 billion, or 64 cents a share, to $ 2.87 billion, or 60 cents a share in the same period a year earlier. The FactSet consensus was for 59 cents per share of earnings. Total revenue fell 9.7% to $ 17.93 billion, bringing FactSet’s consensus to $ 18.12 billion, as all of the bank’s business sectors saw declining revenues. Net interest income was down 17% to $ 9.28 billion, down from FactSet’s consensus of 9.35 billion. Consumer banking and lending revenue fell 5% to $ 8.61 billion, as home lending rose 2% to 8% decline in consumer and small business banking revenue and 7% decline in credit card revenue. “Although our financial performance improved and we raised $ 3.0 billion in the fourth quarter, our results continued to impact unprecedented operating environments and our critical legacy issues,” said Chief Executive Officer Charlie Shroff. The stock has gained 51.4% over the past three months through Thursday, while the SPDR Financial Select Sector ETF XLF,
+ 0.45%
26.0% and S&P 500 SPX,
-0.38%
An increase of 9.0%.

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