Wells Fargo WFC Earnings Q1 2024 | Wilnesh News

FuGuo bank Friday report first quarter earnings Revenue beat Wall Street expectations despite a decline in net interest income.

Here’s how the company performed compared to Wall Street expectations, according to a survey of analysts by LSEG (formerly Refinitiv):

• Earnings per share: 1.26 cents adjusted, 1.11 cents expected
• Revenue: $20.86 billion, $20.20 billion expected

Wells Fargo shares were flat after Friday’s earnings report.

Wells Fargo said its net interest income, a key measure of a bank’s loan income, fell 8% in the quarter as rising interest rates impacted funding costs and customers shifted to higher-yielding deposit products.

Net interest income is expected to decline 7% to 9% in 2024, in line with previous guidance.

The San Francisco-based bank’s net income fell to $4.62 billion, or $1.20 a share, from $4.99 billion, or $1.23 a share, a year ago. Excluding a $284 million, or 6 cents a share, charge from the Federal Deposit Insurance Corporation for bank failures in 2023, Wells Fargo said it earned $1.26 a share, above analysts’ expectations of $1.11 a share. .

Revenue was $20.86 billion, above expectations of $20.2 billion.

“Our solid first-quarter results demonstrate the progress we continue to make in improving and diversifying our financial results,” Wells Fargo CEO Charlie Scharf said in a statement.

“Our investments across the franchise resulted in higher revenue compared to the fourth quarter, as growth in non-interest income more than offset the expected decline in net interest income,” Schaaf added.

In the most recent period, the bank set aside $938 million as a provision for credit losses. The bank said the provision included reduced provisions for credit losses, driven by commercial real estate and auto loans.

Wells Fargo shares are up more than 15% so far this year, outpacing the S&P 500’s 9% return.

The bank repurchased 112.5 million shares of common stock in the first quarter, for about $6.1 billion.