Wells Fargo shares climb on higher earnings, CEO calls for ‘timely’ trade resolution

Wells Fargo shares climb on higher earnings, CEO calls for ‘timely’ trade resolution


In this article

  • WFC
A Wells Fargo Bank branch is seen in New York City on March 17, 2020.
Jeenah Moon | Reuters

Wells Fargo shares rose Friday after the bank reported an increase in quarterly earnings on the back of stable income from investment banking and wealth management.

Here’s what the bank reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Adjusted earnings per share: $1.39, 16% higher year over year but not quite comparable to the estimate of $1.24 due to a number of special items during the quarter
  • Revenue: $20.15 billion versus $20.75 billion expected

Shares of Wells Fargo climbed nearly 2% in pre-market trading after the results.

Net interest income, a key measure of what a bank makes on loans, fell 6% year over year to $11.50 billion. Non-interest income, which includes investment banking fees, brokerage commissions and advisory fees, rose 1% to $8.65 billion from last year’s $8.54 billion.

CEO Charlie Scharf highlighted the uncertainty in the economy brought on by the Trump administration’s actions to reorient global trade, calling for a timely resolution.

“We support the administration’s willingness to look at barriers to fair trade for the United States, though there are certainly risks associated with such significant actions,” Scharf said in a statement. “Timely resolution which benefits the U.S. would be good for businesses, consumers, and the markets. We expect continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes.”

Wells Fargo bought back 44.5 million of its own shares, worth $3.5 billion, in first quarter.

The San Francisco-based lender set aside $932 million as provision for credit losses, which included a decrease in the allowance for credit losses.



Source

Stocks making the biggest moves midday: Insulet, Pinterest, Sweetgreen, Lyft, Microchip Technology and more
Finance

Stocks making the biggest moves midday: Insulet, Pinterest, Sweetgreen, Lyft, Microchip Technology and more

Check out the companies making headlines in midday trading: Insulet — The medical device stock surged more than 19% after first-quarter results beat estimates on the top and bottom lines. Insulet reported adjusted earnings of $1.02 per share on $569.0 million of revenue. Analysts surveyed by FactSet were looking for 79 cents per share and […]

Read More
Stocks making the biggest moves premarket: Pinterest, Lyft, Coinbase, BP, Affirm and more
Finance

Stocks making the biggest moves premarket: Pinterest, Lyft, Coinbase, BP, Affirm and more

Check out the companies making headlines before the bell. Coinbase — The cryptocurrency exchange slipped 2% following disappointing top-line results for the first quarter . Coinbase reported revenue of $2.03 billion, while analysts polled by LSEG were expecting $2.12 billion. Earnings fell to 24 cents per share from $4.40 per share a year ago. Expedia […]

Read More
Stocks making the biggest moves after hours: Affirm, Coinbase, Pinterest and more
Finance

Stocks making the biggest moves after hours: Affirm, Coinbase, Pinterest and more

Check out the companies making headlines in extended trading. Affirm — Stock in the buy now, pay later company pulled back nearly 8%. Affirm issued fiscal fourth- quarter revenue guidance ranging between $815 million and $845 million, with a midpoint of $830 million. That’s short of the consensus estimate of $841 million, per LSEG. Pinterest […]

Read More