Wells Fargo Reported Disappointing First-Quarter Revenue Results
Apr 14, 2022 By MarketDepth
Wells Fargo (NYSE: WFC) reported disappointing first-quarter revenue results on Thursday, following a 33% decline in mortgage lending, but beat earnings expectations amid a decrease in its credit reserves. The bank’s shares fell over 5% upon the news.
Revenue Lower Than Expected
The multinational financial services company reported earnings of USD0.88 per share, compared to the expected USD0.80 a share. Revenue amounted to USD17.59 Billion, lower than analysts anticipated USD17.8 Billion.
“Our internal indicators continue to point towards the strength of our customers’ financial position, but the Federal Reserve has made it clear that it will take actions necessary to reduce inflation and this will certainly reduce economic growth. In addition, the war in Ukraine adds additional risk to the downside.”CEO Charlie Scharf said in a statement
The bank’s first-quarter results can also be partly attributed to Russia’s invasion of Ukraine as that has created volatility within the financial markets and has caused concern regarding global economic growth. Furthermore, Wells Fargo cautioned that more loan losses may present themselves.
“While we will likely see an increase in credit losses from historical lows, we should be a net beneficiary as we will benefit from rising rates, we have a strong capital position, and our lower expense base creates greater margins from which to invest.”CEO Charlie Scharf said in a statement