- Wells Fargo & Co WFC shares are up 3% premarket Friday following its solid first-quarter results that beat Street expectations.
- WFC reported first-quarter FY23 revenue growth of 17% year-over-year to $20.73 billion, beating the consensus of $20.07 billion.
- Q1 Net interest income was $13.3 billion (+45% Y/Y), and non-interest income was $7.4 billion (-13% Y/Y).
- Net interest income increase reflects the impact of higher interest rates, higher loan balances, and lower mortgage-backed securities premium amortization, partially offset by lower deposit balances.
- Consumer Banking and Lending revenue increased 9% Y/Y to $9.36 billion, with Consumer and Small Business Banking up 28%, driven by the impact of higher interest rates, partially offset by lower deposit balances.
- Commercial Banking revenue increased 42% Y/Y to $3.31 billion, with Middle Market Banking up 73%.
- Corporate and Investment Banking revenue increased 41% Y/Y to $4.9 billion, with Banking up 37%, Commercial Real Estate up 32%, and Markets up 53%.
- Wealth and Investment Management revenue decreased 2% Y/Y to $3.68 billion.
- The company posted an EPS of $1.23, compared with $0.91 a year ago and beating the consensus of $1.13.
- Also Read: Wells Fargo Likely To Report Higher Q1 Earnings - Here's A Look At Recent Price Target Changes By The Most Accurate Analysts
- Average loans increased by 6% Y/Y to $948.7 billion, and deposits declined 7% to $1.4 trillion.
- Provision for credit losses stood at $1.21 billion in the quarter, which included a $643 million increase for commercial real estate loans, primarily office loans, and an increase for credit card and auto loans.
- Chief Executive Officer Charlie Scharf commented, "We had strong results in the first quarter including revenue growth from both the fourth quarter and a year ago, and we continued to make progress on our efficiency initiatives. Delinquencies and net charge-offs continued to slowly increase, as expected. Our CET1 ratio, which was already strong, increased and we resumed our repurchase program, buying back $4 billion in common stock."
- Price Action: WFC shares are trading higher by 3.00% at $40.85 premarket on Friday.
- Photo Via Company
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
