A Wells Fargo customer uses the ATM at a branch in San Bruno, California, on Aug. 8, 2023.
Justin Sullivan | Getty Images
Wells Fargo on Friday surpassed Wall Street expectations for third-quarter earnings and revenue because the profit from higher rates of interest offset slowing lending activity.
Shares of the bank rose 3.1% following the report.
Wells Fargo posted earnings per share of $1.48 within the quarter, or $1.39 excluding discrete tax advantages. It was unclear what the precise comparable number was to Wall Street’s expectations, but each figures are higher than the LSEG consensus EPS of $1.24. The earnings are also significantly higher than the 86 cents per share earned in the identical quarter a yr ago.
Total revenue got here to $20.9 billion in the course of the quarter, beating the consensus estimate of $20.1 billion, in response to LSEG, formerly often known as Refinitiv. Revenue was 6.5% higher than the $19.6 billion recorded within the third quarter of 2022.
“Our revenue growth from a yr ago included each higher net interest income and noninterest income as we benefited from higher rates and the investments we’re making in our businesses,” Wells CEO Charlie Scharf said in a press release.
“While the economy has continued to be resilient, we’re seeing the impact of the slowing economy with loan balances declining and charge-offs continuing to deteriorate modestly,” Scharf added.
Net income rose to $5.77 billion within the three months ended Sept. 30 from $3.59 billion a yr earlier, driven by an 8% increase in net interest income.
Wells Fargo said provision for credit losses within the quarter included a $333 million increase within the allowance for credit losses for business real estate office loans and better bank card loan balances.
