Wells Fargo reporting flat profit after scandal

Applications for new checking accounts, credit cards down.

Wells Fargo’s first-quarter profit was essentially flat from a year earlier as new customers continue to stay away from the bank following its sales practice scandal.

The company said Thursday that new checking account openings were down 35 percent in March from the same month a year ago. New credit card applications were down 42 percent.

Overall, Wells Fargo reported net income of $5.46 billion, or $1 per share, in the quarter ending March 31, compared with $5.46 billion, or 99 cents per share, in the same quarter a year ago. The results surpassed Wall Street expectations of 96 cents per share, according to FactSet.

The company posted revenue of $23.93 billion in the period. Its adjusted revenue was $22 billion, falling short of analyst forecasts

of $22.4 billion, according to FactSet.

Like Citigroup and JPMorgan Chase, who also reported their results on Thursday, Wells did benefit somewhat from the rise in interest rates since a year ago. The Federal Reserve has raised interest rates twice recently, last December and in March. Higher rates mean banks like Wells can charge more for loans. In the quarter, Wells’ net interest income was $12.3 billion, up 5 percent from a year earlier.

“Wells Fargo continued to make meaningful progress in the first quarter in rebuilding trust with customers and other important stakeholders, while producing solid financial results,” said Wells Fargo’s CEO Tim Sloan in a prepared statement.

In September, regulators fined the San Francisco bank $185 million for opening more than 2 million accounts fraudulently by employees to meet sales goals. The bank has been dealing with the aftermath ever since.