Wells Fargo: quarterly profits down but above expectations

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(Boursier.com) — Like JP Morgan, Wells Fargo falls in pre-session on Wall Street after the publication of its quarterly results. The Californian banking group generated a net profit of $4.62 billion for the first three months of the year, or $1.20 per share, compared to $4.99 billion or $1.23 per share a year ago. earlier. Adjusted EPS came to $1.26 versus $1.11 consensus. Net interest income, the difference between what the bank pays for deposits and what it earns for loans, fell 8% to $12.23 billion, compared to a consensus of $12.3 billion. .

Nonetheless, overall revenue ($20.86 billion) beat estimates, helped by an increase in investment advisory fees and brokerage commissions. “The investments we are making across the franchise contributed to an increase in revenue compared to the fourth quarter, as an increase in non-interest income more than offset an expected decline in net interest income,” said CEO Charlie Scharf.

Wells Fargo warned last January that its net interest income could decline 7% to 9% this year. The group is still subject to an asset cap that prevents it from growing as long as authorities judge that the problems linked to the fake accounts scandal have not been resolved.

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