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Wells Fargo (WFC) reported better-than-expected quarterly earnings, although CEO Charlie Scharf mentioned the financial institution is bracing for a slower financial system this yr amid worries President Donald Trump’s tariffs may gradual financial development.
The lender reported earnings per share (EPS) of $1.39 for the quarter, up from $1.20 per share a yr in the past and above consensus estimates from Seen Alpha. Income trailed estimates at $20.15 billion, versus $20.86 billion a yr in the past.
Web curiosity revenue (NII), a key measure of lending profitability, fell to $11.50 billion from $12.23 billion within the first quarter of 2024—beneath the $11.82 billion analysts anticipated. Wells Fargo blamed the year-over-year decline on decrease rates of interest, “partially offset by decrease deposit pricing and better deposit balances.”
CEO Scharf mentioned the financial institution expects "continued volatility and uncertainty," and is "ready for a slower financial surroundings in 2025, however the precise final result will probably be depending on the outcomes and timing of the coverage modifications."
"We help the administration’s willingness to have a look at limitations to truthful commerce for america, although there are definitely dangers related to such important actions," Scharf mentioned. "Well timed decision which advantages the U.S. can be good for companies, shoppers, and the markets."
Wells Fargo shares have been little modified in premarket buying and selling and have gained round 12% up to now 12 months via Thursday's shut.
