Wells Fargo & Company (NYSE:WFC) shares moved higher before the opening bell on Friday after the bank posted an earnings beat for the third quarter.
For the three months ended September 30, 2023, the bank reported revenue of $20.9 billion, up 7% from $19.6 billion in the year-ago quarter and ahead of the Street's expectation of $20.2 billion.
Net interest income rose 8% over the same period in 2022 to $13.1 billion, above the Street estimate of $12.8 billion, which the bank attributed to higher interest rates partially offset by lower deposit balances.
Its profits rose 61% year-over-year from $3.6 billion to $5.7 billion.
Earnings per share (EPS) were $1.48, up from $0.86 in the year-ago quarter. Analysts had expected EPS of $1.25, according to Zacks Investment Research.
“Our revenue growth from a year ago included both higher net interest income and non-interest income as we benefited from higher rates and the investments we are making in our businesses,” Wells Fargo CEO Charlie Scharf said in a statement.
“Expenses declined from a year ago due to lower operating losses. While the economy has continued to be resilient, we are seeing the impact of the slowing economy with loan balances declining and charge-offs continuing to deteriorate modestly.”
Shares of Wells Fargo were up 2.4% at US$40.70 in pre-market trade on Friday.
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