Wells Fargo posts strong earnings, stocks rally
The lender’s stocks finished over 5% higher on Wednesday as investors cheered upbeat quarterly results
Stocks impacted: Wells Fargo & Co. (WFC)
Wells Fargo & Co. posted stronger-than-expected results for the first quarter, boosted by higher revenue and a significant release of loan loss reserves. The bank posted net income of $4.742 billion, or $1.05 a share, in the quarter, up from $653 million, or 1 cent a share, in the year-earlier period. Net income rose partly because the bank released from its reserves $1.6 billion it had set aside for loan losses. Revenue rose to $18.063 billion from $17.717 billion. Non-interest expenses rose 7.7% year over year to $14 billion. Net interest income fell 22%, mostly due to low interest rates. Credit card revenue fell 2%, due to lower balances on elevated payment rates while markets revenue rose 19%, on higher demand for asset-backed finance products, other credit products and municipal bonds. The lender’s stocks finished over 5% higher on Wednesday as investors cheered upbeat quarterly results. Wells Fargo shares have risen 38.3% this year.
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