Wells Fargo profit rises on robust loan growth, interest income
WFC•Wells Fargo’s third-quarter net income rose to $5.95 billion, or $1.87 per share, from $5.59 billion, or $1.66 per share, a year earlier. Net interest income increased 5% to $12.52 billion.
1. Quarterly results
Wells Fargo said third-quarter profit increased as its loan book grew and interest income rose. Net income was $5.95 billion, or $1.87 per share, compared with $5.59 billion, or $1.66 per share, in the year-ago quarter; net interest income climbed 5% to $12.52 billion.
2. Loans and outlook
The bank has grown its consumer loan book through credit cards and auto loans. CEO Charlie Scharf said that while economic uncertainty exists and consumer sentiment remains mixed, the bank’s data shows its consumer and business customers are doing well. CFO Mike Santomassimo last month struck an upbeat tone on the bank’s loan growth forecast for the year.
3. Shares and costs
Wells Fargo shares fell 1.5% in premarket trading and were down more than 10% this year through Monday’s close. The article said higher bond yields may support net interest income in the near term, while rising funding costs could temper economic growth.
