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Shares of Wells Fargo & Co. WFC,
On Friday, after the bank reported fourth-quarter earnings that beat expectations for the first time in six quarters, revenue fell more than expected as lower interest rates weighed on net interest income . Net income rose to $ 2.99 billion, or 64 cents per share, from $ 2.87 billion, or 60 cents per share in the same period a year ago. The FactSet consensus was for earnings per share of 59 cents. Total revenue fell 9.7% to $ 17.93 billion, missing the FactSet consensus of $ 18.12 billion as all segments of the bank’s business saw their revenues decline. Net interest income fell 17% to $ 9.28 billion, below the FactSet consensus of $ 9.35 billion. Revenues from consumer banking and loans fell 5% to $ 8.61 billion, an 8% drop in personal and small business banking revenues and a 7% drop in credit card revenues with offset a 2% increase in home loans. “Although our financial performance improved and we earned $ 3.0 billion in the fourth quarter, our results continued to be affected by the unprecedented operating environment and the work required to put aside our significant issues. our legacy, ”said Charlie Scharf, Managing Director. The stock has climbed 51.4% in the last three months to Thursday, while the SPDR Financial Select Sector ETF XLF,
rose 26.0% and the S&P 500 SPX,
gained 9.0%.
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