Wells Fargo 4Q in­come tum­bles

Antelope Valley Press - - BUSINESS - MICHELLE CHAP­MAN AP Busi­ness Writer

Wells Fargo’s net in­come tum­bled in the fourth quar­ter, weighed down by hefty costs and a lower in­ter­est rate en­vi­ron­ment.

The San Fran­cisco-based bank earned $2.87 bil­lion, or 60 cents per share, for the pe­riod ended Dec. 31. A year ear­lier it earned $6.06 bil­lion, or $1.21 per share.

The cur­rent quar­ter’s re­sults in­cluded 33 cents per share of lit­i­ga­tion ac­cru­als.

An­a­lysts polled by Fac­tSet pre­dicted a profit of $1.12 per share.

Wells is still un­der growth re­stric­tions by reg­u­la­tors af­ter years of mis­steps, be­gin­ning in 2016 with the un­cov­er­ing of mil­lions of fake check­ing ac­counts its em­ploy­ees opened to meet sales quo­tas. In 2018 the Fed­eral Re­serve capped the size of Wells Fargo’s as­sets. The Fed hasn’t said when it will lift the re­stric­tions on the bank.

Last year Wells Fargo & Co. named its third CEO in as many years as it at­tempted to move on from its scan­dals. Charles Scharf, CEO of the Bank of New York Mel­lon, took over for C. Allen Parker, who had led the com­pany since March.

Net in­ter­est in­come de­clined from the third quar­ter to $11.2 bil­lion, mostly hurt by lower in­ter­est rates.

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