Wells Fargo & Co Earnings In Line With Estimates

Wells Fargo & Co Earnings In Line With Estimates
By The original uploader was Henry W. Schmitt at English Wikipedia (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons

Wells Fargo & Co (NYSE:WFC) released its third quarter earnings report before opening bell this morning, posting diluted earnings of $1.02 per share on $21.2 billion in revenue. Analysts had been expecting those numbers exactly.

Breaking down Wells Fargo’s earnings results

The bank’s net income rose 3% year over year to $5.7 billion. Wells Fargo saw a pretax pre-provision profit of $9 billion, a 7% increase. The firm’s efficiency ratio improved by 140 basis points, rising to 57.7%. It recorded a 1.4% return on assets and 13.1 % return on equity. Wells Fargo reported $833.2 billion in total average loans and $1.1 trillion in total average deposits.

Hayden Capital 2Q22 Performance Update

unnamed 12Hayden Capital's performance update for the second quarter ended June 30, 2022. Q2 2021 hedge fund letters, conferences and more Dear Partners and Friends, The markets continued to sell-off in the second quarter, especially for internet-based businesses.  This year continues to be the toughest stretch for us, since the Hayden’s inception.  Inflation concerns and the Read More

It also saw more improvements in credit quality, as net charge-offs fell $307 million year over year to $668 million. Non-performing assets fell 15% or $3 billion, while the bank saw a $300 million reserve release because of its credit quality improvement. Allowance for credit losses was $13.5 billion as of Sept. 30.

Total loans rose $9.9 billion from the previous quarter to $838.9 billion. The main drivers of the growth were credit cards, revolving credit, installment loans, industrial, real estate construction, automobile and 1-4 family first mortgages. Wells Fargo reported $289 billion in investment securities.

The bank’s Wealth, Brokerage and Retirement segment saw $550 million in net income and $3.6 billion in revenue. The firm reported client assets of $219 billion and IRA assets of $354 billion, In retail brokerage, Wells Fargo saw $1.4 trillion in client assets.

In Wholesale Banking, net income was $1.9 billion, while revenue was $5.9 billion. Community Banking saw $3.5 billion in net income and revenue of $12.8 billion for the quarter.

Wells Fargo continues to see strong capital levels

The bank reported a Basel III Common Equity Tier 1 ratio of 11.6% as of the end of September. The Advanced Basel III Tier 1 ratio was 10.46% at the end of the quarter.

Wells Fargo reported that the number of its common shares fell 34.9 million during the third quarter as it bought back 48.7 million shares.

Updated on

No posts to display