Wells Fargo jumps as earnings top analyst estimates
Wells Fargo & Company (NYSE:WFC) shares rose more than 3% in pre-open Friday after the banking titan reported better-than-expected results for its third quarter.
Wells Fargo reported Q3 EPS of $1.48, ahead of the analyst estimate of $1.24. Revenue for the quarter came in at $20.86 billion versus the consensus estimate of $20.11 billion.
Chief Executive Officer Charlie Scharf commented, “Our revenue growth from a year ago included both higher net interest income and noninterest income as we benefited from higher rates and the investments we are making in our businesses. Expenses declined from a year ago due to lower operating losses.”
“While the economy has continued to be resilient, we are seeing the impact of the slowing economy with loan balances declining and charge-offs continuing to deteriorate modestly.”
Net interest income came in at $13.11B, surpassing the average analyst estimate of $12.75B.
The bank's total average loans amounted to $943.2B, slightly below the estimate of $946.47B. The total average deposits reached $1.34T.
The return on equity for the quarter was 13.3%, notably higher than the expected 10.6%. The common equity Tier 1 ratio was 11%, while analysts were looking for 10.7%.
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