finance

Wells Fargo profit beats estimates as credit costs stabilize



© Reuters. A Wells Fargo logo is seen in New York City

(Reuters) – Wells Fargo (NYSE:) & Co reported first-quarter profit ahead of Wall Street estimates on Wednesday as the bank set aside less money to cover soured loans.

The fourth-largest U.S. lender said profit rose to $4.74 billion, or $1.05 per share, in the three months ended March, from $653 million, or 1 penny per share, a year earlier.

Analysts on average had expected a profit of 70 cents per share, according to the IBES estimate from Refinitiv.

The slight year-earlier profit was caused by an exceptionally large provision for potential loan losses, as U.S. banks braced for unpaid bills due to the COVID-19 pandemic shuttering the economy and pushing millions out of work.

Since then, an ultra-loose monetary policy, trillions in stimulus support and an accelerated vaccination program have largely put the world’s largest economy on a more solid footing.

Wells Fargo has been operating under penalties from regulators since 2016 when details of a sales scandal emerged and led to the departure of two chief executives and billions of dollars in litigation and remediation costs. Under an order imposed three years ago by the U.S. Federal Reserve, the bank is not allowed to let its assets rise above $1.95 trillion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more