Wells Fargo reports profit miss, stocks slide
The firm’s shares fell 6% on Wednesday after the report
Stocks impacted: Wells Fargo & Co. (WFC)
The bank reported lower-than-expected 3Q earnings of $0.42 per share, compared to analysts’ expectations of $0.44 per share. Wells Fargo’s 3Q revenues dropped 14% year-over-year to $18.9 billion, slightly exceeding an estimate of about $18 billion. Citing lower interest rates, the bank reported a decline of about 19% year-over-year in net interest income to $9.4 billion. On the positive side, Wells Fargo reported that card fees rose to $912 million in the third quarter, up from $797 million previously. The firm also saw heightened debit card usage during the quarter. Debit card point-of-sale purchase volume hit $102.9 billion in the period, up 11.1% from a year ago. As a reminder, the company took a $718-million restructuring charge in the third quarter, predominantly related to severance payments and has already begun reducing the size of its roughly 260,000-person workforce. The firm’s shares fell 6% on Wednesday after the report.
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