As the benefit of increased interest rates offset the slowing lending activity, Wells Fargo on Friday outperformed Wall Street projections in third-quarter earnings and sales.
The bank’s stock increased roughly 1% in premarket trading.
In the most recent reporting period, Wells Fargo reported earnings per share of $1.48, or $1.39 excluding discrete tax benefits. Both numbers exceed the LSEG consensus EPS of $1.24, albeit it was unclear what the exact comparable amount to Wall Street expectations was. Additionally, the profits are much larger than the 86 cents per share that were made in the same quarter last year.
In the third quarter, total sales reached $20.9 billion, exceeding the consensus estimate of $20.1 billion, according to LSEG. Revenue increased by 6.5% from the third quarter of 2022’s $19.6 billion total.
We benefited from higher rates and the investments we are making in our businesses, Wells CEO Charlie Scharf said in a statement. “Our revenue growth from a year ago included both greater net interest income and noninterest income.”
Scharf continued, “While the economy has remained resilient, we are seeing the impact of the slowing economy with loan balances dropping and charge-offs continuing to deteriorate modestly.
Source (CNBC)
