Wells Fargo’s net income made up $653 million. Its diluted earnings per share (EPS) is just $0.01, while analysts predicted earnings of $0.33 per share. Wells Fargo also failed to surpass the $12.3 billion net interest income in the year-earlier period. This time, it totaled $11.3 billion.
Before today’s market opening, Wells Fargo & Co (NYSE: WFC) delivered its Q1 earnings report. As the financial results have appeared to be lower than expected, the bank’s stock started tanking as the session began.
On April 13, Wells Fargo (WFC) stock closed at $31.43. It has gained 1.4% in the pre-market today and opened at $32.30, but after the bank announced its first-quarter earnings, shares went down. At the moment of writing, Wells Fargo stock has dropped by 4.42% and is trading at $30.04 per share.
Wells Fargo Q1 2020 Earnings
The bank’s net income made up $653 million. Its diluted earnings per share (EPS) is just $0.01, while analysts predicted earnings of $0.33 per share. Further, the revenue of $17.7 billion is down now only from $19.284 billion expected but also from $21.6 billion in the first quarter of 2019. Besides, Wells Fargo failed to surpass the $12.3 billion net interest income in the year-earlier period. This time, it totaled $11.3 billion.
John Shrewsberry, Chief Financial Officer at Wells Fargo, stated:
“Our results were impacted by a $3.1 billion reserve build, which reflected the expected impact these unprecedented times could have on our customers. Our results also included an impairment of securities of $950 million driven by economic and market conditions.”
He went on, saying:
“We maintained strong liquidity and capital, and we are committed to using our financial strength to help support the U.S. economy, while still operating in compliance with the asset cap under the Federal Reserve consent order. In the first quarter, we continued to serve our customers and as a result, commercial loans grew by $52 billion, deposits increased by $54 billion, we originated $48 billion of residential mortgage loans, and we raised $47 billion of debt capital for our clients.”
JPMorgan Chase & Co (NYSE: JPM) has also shared its Q1 earnings report. Its financial results were below analysts’ expectations as well. Tomorrow, Goldman Sachs Group Inc (NYSE: GS), Bank of America Corp (NYSE: BAC), and Citigroup Inc (NYSE: C) are expected to follow.
Wels Fargo Cut Fees for Its Robo-Advisor Service
On Monday, Wells Fargo announced a cut in fees on its Intuitive Investor automated platform. Previously, Intuitive Investor users had to start with a minimum $10,000 investment at a 0.50% annual advisory fee. Now, the account minimum is lower, $5,000. Besides, the new fee for Intuitive Investor is 0.35% of assets under management (AUM). For those who have a premium checking account at the bank, the fee decreases to 0.30% of AUM.
Wells Fargo’s Intuitive Investor is an online service that makes the experience of investing simple and convenient by blending technology-driven resources with high-impact personal advice. Its goal is to give new investors a lower-cost option for entering the markets.
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