Wells Fargo (WFC stock) reported earnings for the third quarter on Friday that was lower than analysts had anticipated because the company set aside nearly $800 million in credit reserves. But a big jump in the lender’s net interest income led to overall revenues that were much higher than what Wall Street had predicted. This made shares go up in pre-market trading.
Wells Fargo (WFC stock) Comparisson
Earnings reported by Wells Fargo ( NYSE:WFC ) for the three months that ended in September came in at 85 cents per share , which is a decrease of 27.4% compared to the same time last year and falls well short of the $1.09 per share that was expected by the market on average. The bank said its net income had decreased by 45 cents due to “a range of previous events, including litigation, customer remediation, and regulatory difficulties.” The bank referred to these issues as “historical matters.”
After being accused of engaging in fraudulent and unethical business practices in connection with the so-called ‘fake account’ scandal, the company agreed that it would pay a fine of $3 billion in 2020 to both the United States Department of Justice and the Securities and Exchange Commission.
However, group revenues exceeded projections, increasing 3.6% to a total of $19.05 billion, while net interest income increased 36% to $12.1 billion.
In a decision that matched the caution voiced by JPMorgan Chase (JPM), which set aside $808 million in t...
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