Wells Fargo & Company (NYSE:WFC) reported second-quarter results that surpassed analyst expectations on both earnings and revenue, though its net interest income (NII) came in just below forecasts, causing shares to dip slightly in early trading Tuesday.
The bank posted earnings of $1.60 per share, beating the consensus estimate of $1.40. Revenue totaled $20.82 billion, marginally above the anticipated $20.76 billion.
Net interest income was $11.71 billion, slightly under the expected $11.83 billion, with the net interest margin at 2.68%, just below the 2.7% forecast.
CEO Charlie Scharf highlighted the company’s steady progress, saying, “Our Q2 performance demonstrates ongoing improvement, with net income and diluted EPS rising compared to both the prior quarter and last year.”
He also noted, “In the first half of this year, we repurchased over $6 billion of common stock. We plan to raise our Q3 dividend by 12.5%, pending board approval later this month.”
Consumer banking and lending revenue stood at $9.23 billion. Provisions for credit losses were $1.01 billion, below the expected $1.16 billion.
Non-interest expenses came in at $13.38 billion, largely in line with the $13.4 billion forecast. Investment banking fees reached $696 million versus $703.1 million projected.
The efficiency ratio improved to 64%, better than the expected 64.8%. Return on assets was 1.14%, while return on equity hit 12.8%, ahead of the 11.3% consensus.
The bank’s Common Equity Tier 1 ratio matched expectations at 11.1%, and return on tangible common equity exceeded forecasts at 15.2%, compared to the 13.5% estimate.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.