Daily Management Review

Net-Income For Wells Fargo Proves Better than Expected


The first quarterly income results of Wells Fargo for the year of 2016 show much better than it was thought.

In spite of the downturn in the oil sector, the reports provided by the company of Wells Fargo show “better-than-expected quarterly results”.
In comparison to last year’s figures the first quarter’s “net income” figure fell by “7.6%” to “”, whereby the per share earnings came down to “$0.99” from “$1.04”. However, economists estimated a “quarterly EPS of $0.97”.
According to Digitallook:
“...in the comparable period of 2015 the San Francisco-based lender – one of the largest lenders to the oil sector - recorded a discrete tax benefit of $359m or seven cents per share”.
However, simultaneously the revenues increased by four percent to culminate in “$22.2bn” while the net interest of Wells Fargo came down “from 2.95% to 2.90%”. As per the lender’s report there has been a “return on equity of 11.75% for the latest three month period”, which were lower than “the 13.17% achieved over the three months ending on 31 March 2015”.
Keeping the last year’s figures side by side, the net charge-offs increased “by $178m to $886m” in this year. In a statement, the Chief Financial Officer of Wells Fargo, John Shrewsberry said:
“While challenges in the energy industry and persistent low rates impacted our bottom line, our diversified business model was again beneficial to our results”.