WFC - Wells Fargo: The Easy Money Has Been Made
2024-07-22 04:36:25 ET
Summary
- Wells Fargo beat earnings predictions for Q2, but missed on net interest income.
- The lender's non-interest income was driven by strong investment banking activity, however. Balance sheet quality did not materially deteriorate.
- Commercial real estate exposure is a key area worth watching going forward.
- Shares continue to trade above the historical price-to-book ratio.
Wells Fargo ( WFC ) beat average predictions for its top and bottom line for its second fiscal quarter earnings on July 12, 2024, yet missed on net interest income, a key measure for financial institutions. Wells Fargo’s net interest income, which measures the difference between its interest income earned from its loans and its interest expenses, dropped 9% year over year and the bank now expects an 8-9% decrease in net interest income this year. The lender did report stable balance sheet quality, however, and saw some strength in investment banking, just like Bank of America ( BAC ) last quarter. The NII outlook for FY 2024 remains weak, in my opinion, and I believe that the easy money for WFC has already been made!...
Wells Fargo: The Easy Money Has Been Made