Daily Management Review

Wells Fargo Sees A 26% Slump In Quarterly Profit


Additional legal expenses cost Wells Fargo a portion of its profit.

On Tuesday, 15 October 2019, Wells Fargo & Co revealed that it saw a slip of twenty six percent in its quarterly profit. The profit slump is seen as the lender had to shell out an additional amount as legal expenses for a “sales practices scandal” which took place over “three years ago”.
According to Reuters:
“Net income applicable to common stock fell to $4.04 billion, or 92 cents per share, in the third quarter ended Sept. 30, from $5.45 billion, or $1.13 per share, a year earlier”.
The analysts’ forecast were at “$1.15 per share” of profit as per the “IBES data from Refinitiv”, although it is not clear yet if the above mentioned “numbers were compatible”.
Wells Fargo is based out of San Francisco which had newly appointed Charles Scharf in the post of its “top boss”. Scharf was “Jamie Dimon protégé” one-time who is known in Wall Street as “detail-oriented number cruncher” excelling “in streamlining operations”.