Wells Fargo & Co. (NYSE:WFC) reported first-quarter earnings that exceeded expectations but fell short on revenue, sending shares down more than 5% intraday Tuesday.
The bank posted adjusted earnings per share of $1.60, slightly above the consensus estimate of $1.58. However, revenue came in at $21.45 billion, below expectations of $21.76 billion, though still representing a 6% increase from $20.15 billion in the same quarter last year.
Net interest income rose 5% year over year to $12.10 billion, while noninterest income increased 8% to $9.35 billion.
Average loans grew 10% year over year to $996.0 billion, and average deposits rose 6% to $1.42 trillion. Return on equity improved to 12.2%, up from 11.5% in the prior-year quarter.
Credit quality remained stable, with net loan charge-offs at 0.45% of average total loans, unchanged from a year earlier. The provision for credit losses increased 22% to $1.14 billion, reflecting growth in commercial, industrial, and auto loan portfolios.
The bank’s Common Equity Tier 1 ratio declined to 10.3% from 11.1% in the prior-year period.
