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Wells Fargo profit jumps nearly 60% in the quarter, revenue tops expectations

Wells Fargo signage on May 5th, 2021 in New York City.Bill Tompkins | Michael Ochs Archives | Getty ImagesWells Fargo on Thursday posted a jump in profit in the third quarter, boosted by a release of its credit loss reserves as the recovery from the coronavirus pandemic accelerated in 2021.Shares of the bank dipped about…

Wells Fargo signage on May 5th, 2021 in New York City.

Bill Tompkins | Michael Ochs Archives | Getty Images

Wells Fargo on Thursday posted a jump in profit in the third quarter, boosted by a release of its credit loss reserves as the recovery from the coronavirus pandemic accelerated in 2021.

Shares of the bank dipped about 1.5% on Thursday following the earnings announcement. Here’s how the third quarter compared with Wall Street estimates:

  • Net income: $5.1 billion, a 59% increase from $3.2 billion during the same quarter a year ago.
  • Earnings per share: $1.22 a share, adjusted, topping the consensus estimate of 99 cents per share, according to Refinitiv.
  • Revenue: $18.83 billion, compared with consensus estimate of $18.35 billion.

Results were helped by a $1.65 billion reserve release that led to a $1.4 billion benefit after charge-offs, the bank said. Wells Fargo continued to release funds it had set aside during the pandemic to safeguard against widespread loan losses.

The bank paid a $250 million fine for its “unsafe or unsound practices” tied to its loan modification program, according to the Office of the Comptroller of the Currency.

“We are a different company today and the operational and cultural changes we’ve made are enabling us to execute with significantly greater discipline than we have in the past,” CEO Charlie Scharf said Thursday in a statement. “I believe we are making significant progress, and I remain confident in our ability to continue to close the remaining gaps over the next several years, though we may continue to have setbacks along the way.”

Wells Fargo saw its net interest income decrease by 5%, primarily d

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