Wells Fargo: net interest income disappoints in Q2
(CercleFinance.com) - On Friday Wells Fargo, the US leader in home loans, announced an increase in quarterly EPS, which exceeded market expectations.
This morning, the San Francisco-based bank reported an increase in Q2 EPS to $1.33, compared with $1.25 per share a year earlier and a consensus of $1.29. However, this came with a y-o-y decline in net income to $4.91bn, compared with $4.94bn a year earlier.
However, given the y-o-y decline in net profit to $4.91bn, from $4.94bn a year earlier, this increase seems to be due more to a reduction in the number of shares outstanding.
The third-largest US bank by assets also posted net banking income (NBI) of $20.7bn, compared with $20.5bn a year earlier.
However, its net interest income - i.e. the difference between interest earned on loans and interest paid on customer investments - contracted by 9% y-o-y to $11.9bn in the quarter.
This corresponds to a margin of just 2.75%, compared with 3.09% a year earlier.
Following this lacklustre publication, Wells Fargo shares, which have gained more than 22% since the start of the year, lost more than 3% in pre-market trading on Friday morning.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
This morning, the San Francisco-based bank reported an increase in Q2 EPS to $1.33, compared with $1.25 per share a year earlier and a consensus of $1.29. However, this came with a y-o-y decline in net income to $4.91bn, compared with $4.94bn a year earlier.
However, given the y-o-y decline in net profit to $4.91bn, from $4.94bn a year earlier, this increase seems to be due more to a reduction in the number of shares outstanding.
The third-largest US bank by assets also posted net banking income (NBI) of $20.7bn, compared with $20.5bn a year earlier.
However, its net interest income - i.e. the difference between interest earned on loans and interest paid on customer investments - contracted by 9% y-o-y to $11.9bn in the quarter.
This corresponds to a margin of just 2.75%, compared with 3.09% a year earlier.
Following this lacklustre publication, Wells Fargo shares, which have gained more than 22% since the start of the year, lost more than 3% in pre-market trading on Friday morning.
Copyright (c) 2024 CercleFinance.com. All rights reserved.