Wells Fargo Reports Decrease in Earnings
January 13 2017 - 8:38AM
Dow Jones News
By Emily Glazer
Wells Fargo & Co. said its fourth-quarter profit fell as the
nation's third-largest bank reports its first full quarter of
results since its sales-tactics scandal erupted in September.
The San Francisco-based bank reported a profit of $5.27 billion,
or 96 cents a share. That compares with $5.58 billion, or $1 a
share, in the same period of 2015. Analysts polled by Thomson
Reuters had expected earnings of $1 a share.
Revenue slipped slightly to $21.582 billion from $21.586 billion
and fell below the average analyst estimate of $22.45 billion.
Wells Fargo, led by CEO Timothy Sloan, had been one of the most
consistent big banks at growing earnings and revenue. Shares
dropped though after the bank agreed to a $185 million settlement
with two regulators and a city official over opening as many as 2.1
million accounts with fictitious or unauthorized information.
The bank's shares bounced back following the election, rising
about 20%, which compares with a 23% jump by the KBW Nasdaq Bank
index of large commercial lenders over the same period.
Wells Fargo still faces a spate of state and federal
investigations, including by the Justice Department and the
Securities and Exchange Commission. Regulators also said last month
that the bank failed its so-called living will regulatory test of
how the bank could unwind in a crisis scenario.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
January 13, 2017 08:23 ET (13:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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