Wells Fargo Q1 profits beat expectations
By Iain Gilbert
Date: Friday 14 Apr 2023
(Sharecast News) - Financial services giant Wells Fargo's quarterly profits came in ahead of expectations on the back of increased earnings from higher interest rates.
Wells Fargo posted quarterly earnings per share of $1.23, excluding one-time items, ahead of analysts' estimates for a reading of $1.13 per share.
Net-interest income surged 45% to $13.34bn, deposits fell 2% to $1.36trn, and total revenues rose 17% to $20.73bn in the three months ended 31 March.
Non-interest expenses fell to $13.68bn from $13.85bn, principally due to lower operating losses, and Wells Fargo set aside $1.21bn in the quarter to cover for potential loan losses, compared to a release of $787.0m in Q1 2022.
Wells Fargo also said outstanding commercial real estate loans came to $154.7bn, or 16% of total loans, with $35.7bn in office loans at the end of the quarter.
Chief executive Charlie Scharf said: "We are glad to have been in a strong position to help support the US financial system during the recent events that impacted the banking industry. Regional and community banks are an important part of our financial system."
As of 1305 BST, Wells Fargo shares were up 2.82% at $40.78 per share.
Reporting by Iain Gilbert at Sharecast.com
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