Wells Fargo & Co (NYSE: WFC) published its earnings report for the fiscal first quarter on Wednesday that beat Wall Street estimates. The company attributed its hawkish performance partially to £1.16 billion of credit reserve releases.
Wells Fargo shares were almost flat in premarket trading on Wednesday. The stock is currently exchanging hands at £28.94 per share. In comparison, the American multinational financial services firm had started the year 2021 at a per-share price of a lower £21.59.
Wells Fargo Q1 financial results versus analysts’ estimates
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Wells Fargo reported £3.45 billion of net income in the first quarter that translates to 76 pence per share. In the same quarter last year, its net income was capped at a significantly lower £474.59 million or 0.73 pence per share.
The investment bank valued its revenue in Q1 at £13.13 billion versus the year-ago figure of £12.88 billion. According to FactSet, experts had forecast the company to record £12.73 billion of revenue. Their estimate for per-share earnings stood at a lower 51.60 pence per share.
The San Francisco-based company saw a 22% decline in net interest income, attributed to low interest rates. Noninterest income, Wells Fargo added, jumped 45% in the recent quarter. In the prior quarter (Q4), Wells Fargo reported £2.19 billion of net income.
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Other prominent figures in Wells Fargo’s earnings report
Other notable figures in the American multinational’s financial report on Wednesday include a 6% decline in consumer and small business revenue, and a 19% increase in home lending revenue. As per Wells Fargo, credit card revenue slipped 2% in Q1, while personal lending crashed 18%.
Revenue from corporate and investment banking, financial services company added, slid 6% in the first quarter, but auto revenue and markets revenue jumped 6% and 19%, respectively. CEO Charlie Scharf commented on the quarterly results on Wednesday and said:
“Charge-offs are at historic lows, and we are making changes to improve our operations and efficiency, but low-interest rates and tepid loan demand continued to be a headwind for us in the quarter.”
In separate news from the United States, MKM Partners upgraded Occidental Petroleum’s stock to a ‘buy’ rating.
Wells Fargo performed largely downbeat in the stock market last year with an annual decline of close to 45%. At the time of writing, the NYSE-listed company is valued at £119.50 billion and has a price to earnings ratio of 96.20.