(CercleFinance.com) – Wells Fargo posted lower first-quarter earnings on Thursday, accompanied by a decline in net banking income that missed Wall Street estimates.
The California bank’s quarterly net profit was $3.67 billion, or 88 cents per share, in the quarter, compared to $4.64 billion, or $1.02 per share, the previous year.
Analysts on average had expected earnings per share of 81 cents.
Its net banking income also fell, dropping to 17.6 billion dollars against 18.5 billion a year earlier, where the consensus was rather 17.8 billion.
Wells Fargo, which is based in San Francisco, said provisions for bad debts fell to $787 million from just over $1 billion a year earlier.
But the third US bank in terms of assets has warned that the measures taken by the Fed to fight against the rise in inflation would result in a slowdown in growth.
While this outlook should cause an increase in provisions for bad debts, Wells Fargo also believes that it will create an environment of rising interest rates favorable to its business.
Following this publication, its share yielded nearly 4% in pre-market quotations.
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