Wells reports mixed results for quarter
Wells Fargo & Co. reported mixed earnings Friday, with better-thanexpected revenue but profit that fell short of analysts’ expectations.
The San Francisco bank was one of three major U.S. banks to report earnings, and investors are watching the banks closely for signs about the health of the economy amid a week of stock market turbulence leading up to this quarter’s earnings season.
Competitors JPMorgan Chase & Co. and Citigroup Inc. both reported results that topped Wall Street estimates.
Wells Fargo reported third-quarter revenue of $21.9 billion, topping analysts’ predicted revenue of $21.8 billion, which was in line with last year’s third quarter. But the bank’s earnings per share of $1.13, a marked improvement over the same quarter last year, didn’t meet expectations. Analysts surveyed by data provider FactSet had expected earnings of $1.19 per share
The bank’s profit — which totaled $6 billion, up 32 percent over last year’s third quarter — was boosted by cost cutting and lower corporate taxes due to the GOP tax cuts. Wells Fargo shuttered 88 branches in the third quarter alone and has closed or sold more than 250 over the past year.
The bank, which continues to deal with the fallout from a series of scandals stemming from customer abuses, is operating under an asset cap mandated earlier this year by the Federal Reserve. CEO Tim Sloan said Friday he expects the bank to continue operating into next year under the cap, which limits the bank’s growth while it improves its corporate governance.