+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Slight beat for Wells Fargo

Jan 15, 2016, 19:22 IST

Reuters/ John Adkisson

Wells Fargo & Co., the biggest US residential mortgage lender and a major lender to the energy industry, reported a slight beat on earnings for the last quarter of the year as it set aside more than double the amount it did last year for bad loans.

Advertisement

The San Francisco-based bank reported diluted earnings per share of $1.03 on revenue of $21.6 billion.

Analysts had been expecting adjusting earnings per share of $1.02 on revenue of $21.84 billion.

"Full year and fourth quarter 2015 results demonstrated the benefit of our diversified business model as we again generated strong financial results, maintained our risk discipline and continued to invest across the company for future growth," CEO John Stumpf said in a statement.

"We remained focused on the building blocks of long-term shareholder value, with continued growth in loans, deposits, and capital."

Advertisement

Wells Fargo's shares, which fell about 1% in 2015, were down 2.9% in premarket trading Friday.

Mortgage-banking revenue rose 9.6% to $1.66 billion, the first rise in three quarters.

But provisions for credit losses jumped 71.3% to $831 million in the period compared with a year earlier.

The bank's total loans grew 6.3% in the quarter, with the acquisition of General Electric's commercial lending and leasing assets alone adding about $32 billion to the bank's portfolio.

Net interest income, a measure of the interest received from loans after paying for funding and accounting for potential loan losses, rose 0.58% to $10.76 billion.

Advertisement

In the same quarter last year, Wells reported diluted earnings per share of $1.00 on revenue of $20.7 billion.

In the third quarter, the firm beat expectations, reporting diluted earnings per share of $1.05 ($1.04 expected) on revenue of $21.9 billion ($21.8 billion expected).

JPMorgan reported fourth-quarter earnings on Thursday that were a big beat and set a high bar for the rest of Wall Street.

Citigroup reported fourth-quarter earnings on Friday that beat on the top and bottom lines, while Bank of America, Morgan Stanley, and Goldman Sachs will report next week.

NOW WATCH: We tested an economic theory by trying to buy people's Powerball tickets for much more than they paid

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article