Wells Fargo shares fell Friday after the bank reported first-quarter earnings that showed a decline in interest income.
Wells said its net interest income decreased 8% in the quarter, due to the impact of higher interest rates on funding costs, including the impact of customer migration to higher yielding deposit products.
Here’s how the company performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $1.26 cents adjusted vs. $1.11 cents expected
- Revenue: $20.86 billion vs. $20.20 billion expected
The company saw net income decline to $4.62 billion, or $1.20 per share, from $4.99 billion, or $1.23 per share, a year earlier. Excluding a Federal Deposit Insurance Corporation charge of $284 million, or 6 cents per share, tied to the bank failures in 2023, Wells said it earned $1.26 per share, topping analyst estimates of $1.11 per share.
Revenue of $20.86 billion came in above the $20.20 billion estimate.
Shares of Wells dipped $1.6% in premarket trading Friday morning.
“Our solid first quarter results demonstrate the progress we continue to make to improve and diversify our financial performance,” Wells CEO Charlie Scharf said in a statement.
“The investments we are making across the franchise contributed to higher revenue versus the fourth quarter as an increase in noninterest income more than offset an expected decline in net interest income,” Scharf added.
Shares of the bank climbed more than 15% year to date, beating the S&P 500’s 9% return.
This is breaking news. Please check back for updates.