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Wells Fargo (New York Stock Exchange: WFC) stock gained 2.3% in premarket trading Friday after its third-quarter earnings exceeded Wall Street consensus in a high interest rate environment.
“Our revenue growth from a year ago included higher net interest income and non-interest income as We benefit from higher rates and the investments we are making in our businesses. “Expenses decreased from the prior year due to lower operating losses,” said CEO Charlie Scharf.
However, as the economy slowed, loan balances declined and net loan charge-offs deteriorated somewhat, he said.
Third-quarter earnings per share of $1.48 increased from $1.25 in the second quarter and $0.86 in the third quarter of 2022. Excluding a benefit of 9 cents per share from the resolution of tax matters in the period Previously, third-quarter 2023 earnings per share would have been $1.39, beating analysts’ average estimate of $1.24. Rose of
Total revenue of $20.9 billion, beating the consensus estimate of $20.1 billion, increased from $20.5 billion in the prior quarter and $19.6 billion in the year-earlier period.
The provision for credit losses was $1.2 billion, lower than the Visible Alpha consensus of $1.34 billion, down from $1.71 billion in the prior quarter and up from $784 million in the year-ago period.
Net interest income of $13.1 billion, versus $12.7 billion estimated by Visible Alpha, fell from $13.2 billion in the prior quarter and increased from $12.1 billion in the prior-year quarter.
Noninterest income of $7.75 billion increased from $7.37 billion in the second quarter and $7.47 billion in the third quarter of 2022.
Wells Fargo (WFC) noninterest expenses of $13.1 billion increased from $13 billion in the second quarter and fell from $14.3 billion in the third quarter of 2022.
Third quarter net loan amortization, as a percentage of average total loans, of 0.36% increased from 0.32% in the third quarter and 0.17% in the third quarter of 2022.
43.2 billion as of September 30, 2023, compared to $945.9 billion as of June 30, 2023. Average deposits of $1.34 billion compared to $1.35 billion at the end of the second quarter .
Return on equity increased to 13.3% in the third quarter of 2023 from 11.4% in the previous quarter and 8.1% in the same period a year ago.
Consumer Banking and Lending revenues of $9.58 billion increased 1% quarter-over-quarter and 3% year-over-year.
Commercial banking revenue of $3.41 billion increased 1% quarter-over-quarter and 15% year-over-year.
Corporate and investment banking revenue of $4.92 billion increased 6% quarter-over-quarter and 21% year-over-year.
Wealth and investment management revenue of $3.7 billion increased 1% quarter-over-quarter and year-over-year.
Conference call at 10:00 a.m. Eastern Time.
Previously, Wells Fargo’s (WFC) GAAP EPS of $1.48 beats $0.24 and revenue of $20.86 billion beats $790 million.
