Wells Fargo & Co (NYSE: WFC) reported
Friday first-quarter results that helped boost shares for the struggling bank.
What Happened
Wells Fargo said it earned $1.20 per share in the
first quarter on revenue of $21.6 billion versus expectations of $1.11 per share and $20.99 billion. Net income for the quarter
rose from $5.1 billion last year to $5.9 billion. The company cited ongoing strong credit performance and high levels of liquidity
as the drivers of earnings growth.
Net interest income fell $333 million from last quarter to $12.3 billion due to fewer days in the quarter, balance sheet mix and
repricing, and the impact of a flattening yield curve. Net interest margin was down three basis points to 2.91 percent
The company said total primary consumer checking customers rose 1.1 percent from last year to 23.9 million. Branch customer
experience surveys in the first quarter showed higher scores with some categories reaching the highest level seen in more than
three years.
Why It's Important
Wells Fargo interim
CEO Allen Parker said he remains focused on three priorities, including supporting all team members to better serve customers,
exceeding expectations set by regulatory bodies, and transforming the bank.
"All these efforts are focused on creating a first-rate organization that is characterized by a strong financial foundation, a
leading presence in our chosen markets, focused growth within a responsible risk management framework, operational excellence, and
highly engaged team members," Parker said in the press release.
Parker remains "confident and enthusiastic" about the large opportunities the bank has moving forward to "build an even
stronger" company for all stakeholders.
Shares traded around $48.20 at time of publication.
Related Links:
Buffett
Weighs In Who Is Best Qualified To Run Wells Fargo
Wells Fargo's Asset
Sale: What You Need To Know
Photo via Wikimedia.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.