Wells Fargo announced its earnings for the September 2021 quarter. The company saw an increase in profit by nearly 60%, topping the expectations of the analysts.
- Revenue: $18.83 billion
- EPS: $1.22
- Net Income: $5.1 billion
CEO’s Statement: Wells Fargo
Chief Executive Officer Charlie Scharf commented on the quarter, “The actions we’re taking to improve operating effectiveness and financial returns are coming through in our results, in addition to the benefits we’re experiencing from the economic recovery. We recorded a $1.7 billion pre-tax reduction in the allowance for credit losses and had substantial equity gains.
More importantly, charge-offs were low, net interest income stabilized, and period-end loans grew for the first time since the first quarter of 2020. Expenses continued to decline as we made progress on our efficiency initiatives, and we increased our capital return to shareholders by repurchasing $5.3 billion of common stock and increasing our dividend.”
Analysts expected the company to give a mixed result. WFC’s Q3 2021 earnings per share (EPS) is expected to be $0.83 per Trefis analysis, missing the consensus estimate of $0.98 by 15%. Stock price estimate 3.8% higher than current market price. Trefis maintains a fair value of $49 for WFC’s stock instead of the current market price of roughly $47. The company indeed performed better than the expectations
The company’s shares, however, fell by around 16% after the announcement of the earnings.