Wells Fargo & Co (NYSE:WFC, XETRA:NWT) reported mixed first quarter financial results, exceeding profit expectations but falling short on revenue, sending its shares lower in early trading.
The bank posted adjusted earnings per share of $1.60, slightly above analyst estimates of $1.58.
Net income rose to $5.25 billion from $4.89 billion a year earlier, reflecting continued improvement in profitability.
However, total revenue came in at $21.45 billion, missing expectations of $21.76 billion.
Net interest income (NII) reached $12.1 billion, up 5% year-over-year but below forecasts, highlighting ongoing pressure in the bank’s core lending business.
Shares declined more than 6% following the report, as investors focused on the revenue shortfall, higher expenses, and increased provisions for credit losses. The provision for credit losses rose 21.78% to $1.14 billion, while noninterest expenses increased to $14.33 billion.
Average loans and deposits both showed growth, rising to $996.0 billion and $1.415 trillion, respectively. The bank also returned capital to shareholders, repurchasing $4.0 billion worth of stock during the quarter.
Wells Fargo CEO Charlie Scharf said the company continued to see benefits from its strategic investments, noting broad-based revenue growth across business segments and strong customer activity. He added that credit performance remained stable and that the bank is well-positioned to navigate varying economic conditions.
"While markets have been volatile, we still see continued resiliency in the underlying economy and the financial health of the consumers and businesses we serve remains strong, though the impact of higher oil prices will likely take some time to materialize," he said.