Wells Fargo & Co (NYSE:WFC) shares were down 2.6% in premarket deals after third quarter financials disappointed.
Profit and revenue were both dented by legal issues, amid a pending legal settlement and scrutiny over sales practices.
It reported a US$4.57bn profit, which amounted to 84 cents per share, including a US$1bn charge due to regulatory investigations, which was less than the market anticipated.
Revenue was lower compared to the same quarter of the previous year, at US$21.93bn from US$22.33bn.
“Over the past year we have made fundamental changes to transform Wells Fargo as part of our effort to rebuild trust and build a better bank,” said Tim Sloan, Wells Fargo chief executive.
“While our financial performance in the third quarter included the impact of a litigation accrual for previously disclosed, pre-crisis mortgage-related regulatory investigations, I am proud of the commitment of our 268,000 team members who put our customers first.”
In New York, Wells Fargo shares were down US$1.49 or 2.70% changing hands at US$53.70.